29 April 2011

Quarterly Production Report March 2011

Origin's Exploration & Production business delivers increased production and sales revenues.

Quarterly Production Report (18 pages)

Origin Energy Limited ("Origin") today released its Quarterly Production Report for its exploration and production business, reporting production of 97.2 petajoules equivalent (PJe) and sales revenues of $627.5 million for the year to 31 March 2011.

Origin Executive Director, Finance and Strategy, Ms Karen Moses, said "The Exploration and Production business continues to perform well, delivering significant increases in production and sales revenues for the year to 31 March 2011. Production of 97.2 PJe is a 32 per cent increase on the prior corresponding period, while sales revenues of $627.5 million reflected an increase of 46 per cent.

"The strong performance was driven by increased contributions from the Kupe Gas Project, Origin's increased interest in the Otway Gas Project, and BassGas, reflecting the extended shutdown at the facility in the prior year. Australia Pacific LNG also made a significant contribution, delivering a 42 increase in production on the prior corresponding period," Ms Moses said.

Production for the quarter to 31 March 2011 was 28.9 PJe, or 21 per cent higher than the March Quarter in 2010. This result is attributable to increased CSG supply to major customers and the return to production at BassGas. Sales revenues for the quarter were 43 per cent higher at $203.2 million, reflecting the increased production.

Compared with the December Quarter 2010, production was 8 per cent lower reflecting a planned shutdown at the Otway Gas Project, adverse weather conditions that impacted production in Queensland and seasonal demand. Sales revenues were 4 per cent higher than the December Quarter 2010, reflecting improved commodity prices.

In addition to the continuing increase in domestic CSG production, Australia Pacific LNG has achieved a number of key milestones in relation to its CSG to LNG project. In February, Australia Pacific LNG received Federal environmental approvals and signed a Heads of Agreement with Sinopec for the supply of 4.3 mtpa of LNG for 20 years and for Sinopec to subscribe for a 15 per cent ownership interest. This was converted to a binding agreement on 21 April 2011.

The report does not cover other areas of the integrated energy businesses undertaken by the company, including electricity generation, energy retailing or its subsidiary Contact Energy of New Zealand.


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