Petsec Energy is considering reining in its exploration program following the dramatic falls in oil and gas prices.
The oil and gas producer, which has interests in the US, Gulf of Mexico, and Yemen, had committed to drilling five exploration wells during 2014/15 and was considering another three.
But it says the plunge in energy prices had caused it to review whether it would go ahead with drilling the three optional wells.
"Depending on the size of the expected reduction in drilling and development costs and deal terms consequent to the commodity price falls, a small number of the prospects may not be drilled as expected," Petsec said on Wednesday.
"However, it is anticipated in this current environment that any prospect rejected would soon be replaced by other suitable drill targets."
Meanwhile, Petsec announced its production levels rose 38 per cent in the December quarter to 142 million cubic feet of gas.
However production for the year to December fell 56 per cent to 1.6 million cubic feet, mainly because of asset divestments.
Revenues fell in the quarter by nine per cent to $US500,000, with lower oil prices offsetting higher production levels.
Shares in Petsec were 0.9 of a cent higher at 10 cents at 1229 AEDT.
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