Oil and gas producer Origin Energy Ltd (ASX: ORG) announced on Wednesday it achieved record September quarter production and sales revenues after strong performances at key projects.

The Exploration and Production business achieved quarterly production of 37 PJe, a 45 per cent increase on the same period last year. Sales revenues of $230 million represented an increase of 52 per cent compared with the corresponding period in 2009, Australia's largest energy retailer said.

Australia Pacific LNG's production of coal seam gas increased 25 per cent compared with the previous quarter (June 2010) and achieved peak daily production rates in excess of 300 terajoules per day (TJ/d). Driving increased demand was the commencement of supply to Rio Tinto Alumina and commercial operations of Origin's Darling Downs Power Station.

Origin's Finance and Strategy executive director Karen Moses said, "The strong result is a reflection of the deployment of substantial capital and resources during the past couple of years, specifically in the Kupe field in New Zealand, our increased equity interest in the Otway Gas Project, and the continuing growth in production from the coal seam gas fields.

"All projects, except the Perth Basin, produced at or above levels recorded in the previous quarter. High seasonal demand resulted in the Kupe and Otway Gas Projects increasing their production 31 per cent and 26 per cent respectively, compared with the previous quarter," she said.

Australian Pacific LNG continued to increase production and progressed FEED studies, regulatory approvals and marketing activities. Daily production averaged 276 TJ/d, while its drilling campaign consisted of 65 wells, including 12 development wells and 53 exploration/appraisal wells.

Shares in Origin closed 13 cents lower at $15.97.