Drillsearch aims to be a mid-tier
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SYDNEY, Nov 21 AAP
November 21 2012, 12:42AM
Oil and gas explorer Drillsearch Energy has forecast a revised four-fold jump in production in 2013 that will help its transition into a mid-tier producer.
The central Australian Cooper Basin-focussed company is forecasting production of 1.31 million to 1.57 million barrels of oil equivalent (BOE) in fiscal 2013, higher than previous guidance of 1.23 million BOE.
It produced 389,877 BOE this year.
The growth would come from the company's oil rather than gas business, with it bringing the Bauer oil field in the Cooper Basin into production this year, managing director Brad Lingo told shareholders at the company's annual general meeting in Sydney.
As well as growing from a junior to mid-tier, Drillsearch would aim for further large-scale increases in reserves and cashflow in 2013 via organic and acquisitive growth, he said.
Drillsearch is close to completing a $132 million cash takeover of petroleum explorer Acer Energy, giving it exposure and scope for growth in oil and wet gas in the region along with unconventional shale.
Drillsearch shares were three cents weaker at $1.47 at noon.