31 July 2009
Annual Reserves & Quarterly Production Report June 2009
Origin's Exploration and Production achieves record annual sales and production while APLNG boosts gas reserves by 50 per cent.
Origin Energy Limited (“Origin”) today announced record annual production and sales revenue for its Exploration and Production business and a 50 per cent annual increase in 2P coal seam gas (“CSG”) reserves for the Australia Pacific LNG joint venture.
Annual production from Origin’s Exploration and Production business increased by 4 per cent to 104 petajoules equivalent (“PJe”) while sales revenue increased by 10 per cent to $572 million compared with the prior financial year.
Australia Pacific LNG, in which Origin has a 50 per cent interest, has more than doubled total Proved and Probable (“2P”) reserves to 7,265 PJe and increased total Proved, Probable and Possible (“3P”) reserves by approximately 25 per cent to 12,627 PJe compared with last year.
Origin’s Managing Director Mr Grant King said, “This has been an extraordinary year for Origin during a period that has generally been difficult for exploration and production companies. We have delivered record production and sales despite the global slowdown and depressed commodity prices.
“In addition, the significant increase in Australia Pacific LNG’s CSG reserves confirms that this is a large scale, high quality resource that is capable of supporting a multiple train LNG project. It is an important milestone in supporting a final investment decision for Australia Pacific LNG’s CSG to LNG project in late 2010.
“Origin’s long term focus on the exploration and development of gas resources has delivered real value to shareholders.
“Our Exploration and Production business continues to perform strongly. Origin grew production and sales revenue despite the dilution of our CSG interests following the Australia Pacific LNG transaction. This was achieved as we continued to expand production from CSG assets, and as the Otway Gas Project delivered its first full year of production.
“For the third consecutive year, Origin has more than doubled the 2P CSG reserves across the interests now held by the Australia Pacific LNG joint venture with ConocoPhillips.
“With almost 2,500 PJ added to its 2P reserves base this year, Australia Pacific LNG is the largest holder of CSG reserves in Australia. Ongoing development and production activity has seen Australia Pacific LNG’s annual production increase by 35 per cent to 60 PJ, representing around one third of Australia’s total CSG production,” Mr King said.
Primarily as a result of the Australia Pacific LNG transaction, Origin’s 2P reserves position went from 5,770 PJe to 4,484 PJe. In April this year Origin acquired further CSG reserves and resources next to the proven fields in the Undulla Nose. While the transaction was not completed in the reporting period and therefore not included in the 2009 Annual Reserves Report, this acquisition is expected to add over 1,000 PJe of 3P reserves and provide significant flexibility for Origin’s domestic operations.
Highlights from the Quarterly Production Report and Reserves Report are provided as appendices to this release.
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Origin boosts gas supply to southern markets
Origin has secured additional gas supply and transport that will enable it to materially increase gas supply to customers in southern markets, helping to alleviate a potential forecast shortfall in supply identified by the Australian Energy Market Operator (AEMO).