Beach Energy Ltd
(ASX:BPT) has provided guidance for its FY2017 capital expenditure.
The oil and gas company says that it expects capital expenditure to be between $180 million - $200 million. Around 55% of that amount will be discretionary expenditure, and the remainder being fixed expenditure.
For the discretionary component, Beach Energy says 2/3 of that will be allocated to its Western Flank oil and gas assets. The company says it is planning an active exploration program to replace and develop its 2P (proven and probable) reserves.
As for the fixed component, the company will allocate this towards two joint ventures (SACB and SWQ). In particular, the company says it will focus on developing gas reserves to satisfy its existing contractual obligations.
Beach Energy reported a net loss of $600 million at 31 December 2015.
