Oil Search shares are soaring as production hits a record high

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Oil Search hit record production in the June quarter to 7.41 million barrels, a rise of 7% on the previous three months.

The energy company’s shares jumped more than 3% to $7.16 on the news of the highest quarterly production in Oil Search’s history.

Based on the strong performance, Oil Search upgraded its 2015 production forecast range to between 27 million barrels and 29 million from 26 million to 28 million.

Total revenue fell 17% to $US391.5 million for the quarter. However, revenue for the first half of 2015 came to $US863.8 million compared to $US510.0 million in the first half of 2014.

The average realised oil price was $US61.69 a barrel, 20.3% higher than the first quarter. However, LNG and gas prices were 35% lower.

Oil Search, like most energy companies, has been cutting costs in response to plunging global prices for oil which was today trading at $US56.49 a barrel, about half its value from a year ago.

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