More than 80 jobs gone in Beach merger and restructure
Adelaide-based oil and gas producer Beach Energy today confirmed more than 80 jobs had gone following its merger with Drillsearch and a restructure of its operations.
Shares in Argonaut are up by more than 8 per cent this morning on the news of the new site.
In its third-quarter report released to the ASX this morning, Beach confirmed 88 positions had gone or not been replaced as a result of its new structure and completed merger.
Beach reported a 29 per cent reduction to 213 staff since June 30 last year and 21 per cent cuts, or 64 positions and mostly Sydney based, were attributed to “merger related redundancies”.
Nineteen staff were cut during the first half of 2016 by not being replaced and five positions were axed as a result of the new structure review.
In a statement to the ASX yesterday, Beach stated 64 jobs would be lost from the merger.
During the quarter Beach recorded 5 per cent increase in sales volume to 2.65 million barrels of oil and quarterly production was up 8 per cent to 2.4 MMboe.
The increase was attributed to the Drillsearch merger and sustained oil production from the Western Flank’s ex PEL (Petroleum Exploration Licence) 91 on the Cooper Basin.
Beach reported it continued to track ahead of schedule during the quarter and the merger.
“I am pleased to report that the merger synergies have exceeded our original expectations,” acting chief executive officer Neil Gibbins said today.
“We completed the merger on 1 March 2016, with Drillsearch now a wholly owned subsidiary of Beach, and we are estimating in FY17 we will realise annual pre-tax cost savings of up to $40 million.
“The merged entity has strengthened our ability to navigate the current market conditions and better position the company to take advantage of future opportunities,” he said.
