Oil Search has lifted its production targets after achieving record quarterly output.
The Papua New Guinea-focused oil and gas producer now expects production in calendar 2015 to be between 27 million and 29 million barrels of oil or equivalent (mmboe), up from its previous forecast range of 26 to 28 mmboe.
The improvement comes after a boost in exports from its PNG liquefied natural gas joint venture took quarterly production to record levels.
Production in the three months to June 30 increased seven per cent from the preceding three months to 7.41 mmboe.
"Based on the PNG LNG plant's performance to date, we are confident the project can continue to produce LNG above the nameplate capacity," managing director Peter Botten said.
But quarterly revenue fell 17 per cent to $US391 million ($AUD530.35 million), as the average realised LNG and gas price dropped 35 per cent from the first quarter of 2015.
Oil Search also expects to reduce its cost of production, lowering its forecast from a range of $US10-$US12 per barrel of oil equivalent (boe), to $US9-$US11 boe.
The company's shares were up 27 cents, or 3.9 per cent, at $7.22.
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