news regarding Beach's report of decreased oil projections.
It's not a major imminent problem with oil prices rising but has to adjust the life of the production.
"Reserve Update Beach report that a review of 2P reserves across the Western Flank oil and gas fields, including the Bauer oil field on ex-PEL 91, was undertaken following recent declines in oil production. This review has resulted in a net downgrade to 2P reserves across their Western Flank assets. (Note: Western Flank includes the Company's GOR licences ex-PEL's 91,106,107 and PRL 26, as well as ex-PEL's 92,104 and 111, over which the Company does not have a GOR).
With respect to the GOR licences;
- oil reserves in the Bauer oil field in ex-PEL 91 have been downgraded by 6.0 MMboe
- oil reserves in four other fields in ex-PEL 91 have been downgraded by 8.2 MMboe
- reserves in ex-PEL 106 gas fields have been downgraded by 7.2 MMboe
Production Update
Beach have not provided a specific production update for the GOR licences. However, Beach forecast FY21 production of 8.6MMboe for the Western Flank assets. Beach estimate that FY22 Western Flank oil production is expected to be 4.0-5.0 MMbbls below their previous estimates.
The Company will update shareholders as soon as it is in receipt of any specific production forecasts for the GOR licences.
Drilling Update
Drilling of the FY21 wells was completed in March 2021 and they are being progressively connected and completed on pump. This activity will continue into Beach's FY22.
The FY22 drilling program will focus on;
- infill drilling within existing oil fields
- exploration of Namur targets
- exploration of over 100 targets and leads already identified and prioritized
Guidance
Beach updated their FY21 Guidance with their Half Year results on February 15th, 2021, and this was summarized in a Company News Release dated February 17th, 2021. Beach report that since the FY21 Half Year Results, additional production data from Bauer oil wells drilled throughout the FY21 drilling campaign confirmed production decline. In addition, Beach report that recent results from oil wells drilled outside of the Bauer oil field, including the Balgowan, Chiton, Hanson and Kalladeina fields have "come in at the low end of expectation".
Beach report that as a result of continuing variability to the business, which include adjustments because of the Covid-19 pandemic, and reductions in Western Flank oil and gas production, it has withdrawn, and will no longer provide, a five-year outlook in its current form.
"Obviously we are pleased with the recent increase in the oil price and this should offset the effects on the GOR of a possible decrease in production for the current quarter, but the downgrading of reserves is disappointing for the long term." stated Ian Rozier, President and CEO of the Company.
Because of the time-zone difference, disclosure of information contained in this news release and as provided by Beach was available in Australia on Thursday April 29, 2021 after market hours in Canada. Because of the uncertainty in being able to disseminate this news release in a timely manner on Friday April 30, 2021 the Company took advice from its legal counsel and asked for trading in the Company's shares to be halted pending dissemination such that shareholders and potential investors unaware of the Beach ASX announcement made late on Thursday April 29, 2021 PST, would not be disadvantaged."