Oil Search shares down as production dives

SHARES in leading oil and gas explorer Oil Search have slipped after it tabled a 4 per cent decline in production for the three months to June.

Oil Search produced 7.24 million barrels of oil equivalent during the quarter, down from 7.57 million barrels back in March, following planned maintenance at several sites.

Its sales dipped 4 per cent and revenue was 3 per cent lower at $ US332.5 million ($ 420.5 million).

Oil Search shares dipped 5c, or 0.7 per cent, to $ 6.73.

It came as the broader share market finished sharply lower after a spike in the Australian dollar hit exportoriented companies and the financial sector sagged.

The benchmark ASX 200 shed 68.1 points, or 1.2 per cent, to 5687.4 points while the broader All Ordinaries index reversed 62.7 points, or 1.1 per cent, to 5738.1.

The dollar nudged US79c following upbeat minutes from the Reserve Bank’s July monetary policy meeting.

“The currency has not been great for exporters or interest rate- sensitive stocks,” Macquarie Wealth Management division director Martin Lakos said.

Rio Tinto was down 98c, or 1.5 per cent, to $ 64.94 after lowering expectations for full- year shipments of iron ore. BHP shed 7c to $ 25.10.

The Commonwealth Bank was the worst of the big four banks, down $ 1.54, or 1.9 per cent, to $ 81.40. The board of MCG caterer Spotless — whose shares were flat yesterday at $ 1.15 — finally waved the white flag following a protracted takeover battle, throwing its support behind engineering group Downer EDI’s $ 1.2 billion bid. Downer shares fell 5c to $ 6.23.

Wellard was down more than 25 per cent, at 14.5c, after the cattle exporter said Asian demand was being stifled by high prices.