Drillsearch Energy is an ASX200 oil and gas company with a core business in the Cooper Basin of central Australia.
Drillsearch is one of the largest acreage holders in the Cooper Basin, which is located on the borders of South Australia and Queensland. The Cooper Basin is Australia’s premier onshore petroleum region, with more than 50 years of history as an oil and gas producer. It is linked by pipelines to major centres of population on Australia’s East Coast, as well as to Gladstone in Queensland, where three liquefied natural gas export terminals are in varying stages of development.
Drillsearch’s fundamental strategy is to create shareholder value through the development of its acreage. The company has a strong track record of increasing reserves, production and cash flow and its core activities are divided into three key business units: Oil, Wet Gas and Unconventional.
Drillsearch’s Oil Business is centred on the Western Flank Oil Fairway and is the company’s key cash flow generator. The company’s Wet Gas business produces gas from the Western Cooper and has a number of undeveloped gas discoveries from which it aims to deliver sustainable, profitable growth, funded by cash flow generated by the Oil Business. The possibility for Unconventional resource potential lies across a large part of Drillsearch’s acreage. The potential to commercialise these resources represents a longer term opportunity for Drillsearch.
Drillsearch prioritises its capital expenditure towards activity that has the potential to deliver near-term production, cash flow and reserves replacement, though the company’s portfolio also contains several assets with the potential to underpin longer term sustainable growth. Drillsearch aims to match capital expenditure to operating free cash flow, and to reduce operating expenditure, in order to maintain a strong financial position. The company has an excellent track record of delivery, as well as a supportive shareholder base.
The Cooper Basin offers Drillsearch significant growth potential and will continue to be the focus of the company’s growth plans, however Drillsearch is also reviewing opportunities to replicate its successful Cooper Basin business model in other areas proximate to the company’s core area of focus.