Woodside Petroleum Boosts Myanmar Resource Base Amid Ongoing Oil Price Turmoil

Woodside Petroleum Limited (ASX: WPL) has made significant discoveries in Myanmar, enhancing its best estimate contingent resource base. The company's Shwe Yee Htun gas field has a contingent resource of 895 Bcf dry recoverable gross gas, with a net economic interest of 209 Bcf for the group.

The group has a 40% stake in Block A-6 and Block AD-7, both held under production sharing contracts with the Myanmar government. Appraisal drilling and testing programs are planned for Shwe Yee Htun gas field from 2017. The Thalin field also has a 2C contingent resource of 1510 Bcf dry recoverable gross gas, with a net economic interest of 260 Bcf for the group.

Woodside is maintaining a strong balance sheet and low cost production, which will help withstand ongoing oil price turmoil. The company has a cash flow from operations of over $2.4 billion and raised $4.1 billion via new and refinanced debt facilities to strengthen its capital position. Woodside aims to fund potential growth within a gearing range of 10% to 30% and an 80% payout ratio.

The company is investing in high-potential projects, such as the Wheatstone Project, which is expected to deliver first LNG by mid-2017. The group also installed two subsea manifolds for the Julimar Project, which is on track to start production in the second half of 2016.

Woodside has a solid competencies-enabled portfolio expansion of 150% over the past three years, despite an oil prices pressure environment. The company aims to drill high-impact exploration wells and achieve a commercial success rate of greater than 25%, while incurring finding costs at $3/boe.