The ramp up of a massive liquefied natural gas project in Papua New Guinea has fuelled a surge in Oil Search's quarterly revenue.
The oil exploration and production company achieved revenue of almost $340 million in the three months to June, up from $170 million in the March quarter.
Production in the June quarter more than doubled to 3.69 million barrels of oil equivalent (mmboe), following the start of production at the PNG LNG project in March.
Managing director Peter Botton said commencement of shipments from the $US19 billion project, in which it holds a 29 per cent stake, was a major milestone for Oil Search.
"It also heralded the start of a major corporate transformation for Oil Search, with the company's production expected to quadruple in 2015, the first full year of operation," he said.
Oil Search also confirmed it expects to produce between 17 and 20 million mmboe in calendar 2014.
Shares in the company had gained nine cents, or 0.95 per cent, to $9.59 by 1315 AEST.
CMC chief market strategist Michael McCarthy said investors had not got carried with the boost to Oil Search's revenue.
"The gain today relates as much to firmer oil prices overnight as it does to this report," Mr McCarthy said.
"As long as that growth in production is continuing it's a good news story for Oil Search because this is a company transformation."
He said investors were eager to see continued production growth as the company shifts its focus from exploration to production.
Oil Search shares have risen by more than 15 per cent this year.
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