However, what is more exciting about its fourth quarter release is that OSH was mainly seen as a future story; that now appears to be shifting to a here-and-now story.
Operating revenue for the fourth quarter hit $210 million the median estimates came in at $190.3 million and was above the top end of the ranges at $203 million. Fourth quarter production closed at 1.77 million barrels of oil equivalent (Mmboe), which is well above median estimate of 1.67 Mmboe and above the top of the range at 1.7 Mmboe.
That sees the total for the 2013 calendar year to 6.74 Mmboe; company forecast were for 6.2-6.7 Mmboe. The results have also lead to an upgrade in expectations for CY14 from 10-13 Mmboe to 12-15 Mmboe.
This is on the back of further updates to the PNG LNG project. OSH sees no material impairment charges in 2013 following a review of the assets, and the company continues to reiterate it expects the PNG project to take its first sales in the second half of 2014 and will contribute to the production upgrade and expected earnings.
This report does illustrate that the company is now on the cusp of becoming a high-end producer. It is months away from operating a high-end tier-1 asset that will provide significant earnings improvements and will put is on the world stage. OSH is primed to take itself to the next level.