Investors filed a class action against Beach Energy in the Federal Court on Thursday afternoon for allegedly misleading shareholders with inflated production and reserves forecasts.
In August 2020, the troubled oil production company predicted FY2021 oil and gas production of between 26 and 28.5 million barrels of oil equivalent (MMboe), and estimated that it had 352 MMboe of oil and gas reserves in the ground at the end of FY2020.
But, the company faced a crude awakening in April this year, when it downgraded its forecast oil and gas production to between 25.2 and 25.7 MMboe. Critically, the company also downgraded its estimate of oil and gas reserves by 18.4 MMboe and withdrew its five year outlook.
Class Actions Practice Leader at Shine Lawyers, Craig Allsopp, said “the company saw more than a 40% drop in its market capitalisation, shocking investors who put their faith in Beach Energy’s statements about its production and reserves,” he said.
“Shine Lawyers has alleged that the company was brash and inaccurate in its statements to the market, leaving shareholders millions of dollars out of pocket.”
The investigation will explore whether Beach Energy engaged in misleading and deceptive conduct as well as potential breaches of its disclosure obligations.
The firm encourages all investors impacted by the drop in share price to register for the Beach Energy Shareholder Class Action on our website.