MINING SERVICES: Drillsearch has reaffirmed its full-year production guidance as the oil and gas sector continues to grapple with low global oil prices.
At its annual general meeting yesterday, chief executive Walter Simpson said the company’s production in the year-to-date had been “strong”, with the firm still eyeing 2.8 to 3.2 million barrels of oil equivalent. The company produced 815,000 boe in the first quarter, however revenue was down 12 per cent.
The company had made a solid start to the fiscal year and its financial position remained strong, Mr Simpson said.
“Despite the sustained challenging environment, we have continued to deliver considerable success from our platform in the Cooper Basin,” he told the meeting. Meanwhile, Drillsearch is expecting capex of $80m to $110m in fiscal 2016 against a $142m spend last year.
The company, which will put merger plans with Cooper Basin peer Beach Energy to shareholders at a meeting in January, posted production of 3mmboe last financial year, which was slightly down on fiscal 2014.
Drillsearch posted a net loss of $8.1 million for the year ending June, going into the red after the prior year’s $41.9m profit.
DLS Price at posting:
67.5¢ Sentiment: Buy Disclosure: Held
