Petroleum producer Beach Energy has forecast a boost in production of up to 16 per cent after strong oil flows drove a seven per cent rise last financial year.

The company, which produces most of its oil and gas in central Australia's Cooper Basin, expects annual production of 8.7 to 9.3 million barrels of oil equivalent (mmboe) in the 2013/14 financial year.

Beach produced 8.0 mmboe for the year to June 30, after record quarterly oil production for the June quarter.

It has also forecast spending of between $420 million and $480 million on development and exploration in 2013/14, including $90 million to 100 million on its unconventional gas interests in the Cooper Basin, which global giant Chevron is a joint venture partner in.

The potential of the unconventional gas, which includes right rock and shale formations, offer lucrative export and domestic supply potential if successful amid worries about eastern Australia's future gas supply.

It has also sparked speculation of Beach being a takeover target.

Beach generated record full year revenue of $698 million in 2012/13, from an average oil price of $110.80 a barrel and sales of nearly 9.0 mmboe.

Beach's managing director Reg Nelson said a newly installed oil pipeline in the Cooper Basin's west had helped it reach oil production of 10,000 barrels a day there and boosted the result.

It has reported a better than expected $348 million in the bank, boosted by payments from Chevron for its stake in the unconventional interests.

Beach shares rose, up 2.5 cents, or 1.9 per cent, at $1.355 at 1337 AEST.

 

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