Oil and gas company Drillsearch Energy has massively increased its production estimates.
Oil and gas explorer Drillsearch Energy has increased its 2014 production guidance by around a million barrels.
In a forecast representing a new record for Drillsearch, the company said it would produce between three million and 3.3 million barrels in the fiscal year.
The new figures compare to previous guidance of 2.3 million to 2.5 million barrels in the year.
It is around triple the barrels produced in FY2013, the company’s previous record.
The big increase in production will also increase cashflows which Drillsearch will use to strengthen its balance sheet and fund exploration and development.
Drillsearch’s increased production is being driven by the better-than-anticipated performance of its operations in Queensland’s Cooper Basin, in particular the Bauer field.
The company plans to drill about 20 wells in the second half of FY2014.
In a statement on Wednesday, Drillsearch managing director Brad Lingo described the Bauer field as a prolific performer.
“The revenue generated by our oil business continues to strengthen our cash position, as well as to underpin our broader exploration and development programs, as we pursue our strategy of increasing reserves, production and cash flow,” he said.
At 1537 AEDT, Drillsearch shares were 8.5 cents, or 5.94 per cent, higher at $1.515.