Drillsearch shares are higher after the company flagged strong margins despite a slide in production.
The oil and gas explorer and producer expects to have produced 3.0 million barrels of oil equivalent for the year, a result that would be at the lower end of its previous forecast of 3.0-3.2 mmboe and lower than the 3.4 mmboe in 2013/14.
It expects production will remain around similar levels in 2015/16, at 2.8-3.2 mmboe.
Despite oil price weakness and uncertainty in global oil markets, Drillsearch said it had completed its largest ever work program in full year 2015, with 41 wells drilled across Drillsearch's acreage.
"Margins from the oil business continue to be strong and Drillsearch continues to maintain a robust cash position," the company said in a statement on Wednesday.
Meanwhile, the company expects its capital expenditure for 2014/15 will be around $145 million and fall to $80 million-$110 million in 2015/16.
Managing director Brad Lingo said Drillsearch had delivered another period of exceptional outcomes in the field.
"Even after a period of record investment in our business, we continue to have a robust financial position and a solid platform for growth," he said.
The company's work program for full year 2016 is expected to include drilling up to 22 wells and bringing new and existing gas discoveries online.
Drillsearch shares closed 1.5 cents, or 1.45 per cent, higher at $1.05.
Share
