Energy producer Drillsearch is on track to meet its full year production forecasts but the oil price slump has forced it to re-assess the value of some assets.
Drillsearch, which is in the process of merging with Beach Energy, says it produced 1.63 million barrels of oil equivalent in the half year to December 31, compared to 1.54mmboe in the previous corresponding period.
It expects full year production will be at or above the top end of its forecast of 2.8mmboe-3.2mmboe.
However, plunging oil prices, weakening market sentiment and a drop in the value of Drillsearch shares means the Cooper Basin producer needs to assess the carrying value of its assets.
That is not expected to have a material impact on the value of its oil and gas assets, but may impact exploration and evaluation assets, Drillsearch said.
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The company's shares were up one cent at 45 cents at 1325 AEDT.
