SYDNEY - [AAP] Origin Energy (ASX: ORG) has flagged a $533 million hit on its 2018 first-half results following impairment charges for its Ironbark gas field and on its recently sold Lattice Energy business.

The electricity and gas company says it expects a $360 million impairment for the Queensland Ironbark gas field, on a post-tax basis, after a downgrade in its reserves and a revised development plan.

"The reserves revision follows a detailed assessment of the Ironbark gas field applying updated assumptions consistent with the technical review of Australia Pacific Liquefied Natural Gas' reserves carried out in June 2017," Origin said in a statement on Thursday.

"The carrying value of the Ironbark gas field development post the impairment is expected to be $279 million."

Origin also expects a non-cash post-tax impairment charge of $173 million for Lattice Energy, its operations in Otway, Victoria, as a result of recognising the conventional oil and gas business' earnings from July 1 2017 to January 31.

The advice comes after the company last week announced it had completed the sale of the Lattice Energy business to Beach energy for $1.6 billion.

Under the deal, Origin has secured access to a significant portion of Lattice's future east coast gas production through long-term gas supply agreements.

The total impairment charge is subject to finalisation of Origin's half-year financial statements and has no impact on full-year underlying earnings before interest, taxes, depreciation, and amortisation, the company said.

Origin is due to release its half-year results on February 15.

At 1050 AEDT, Origin's shares were trading 11 cents, or 1.23 per cent, lower at $8.84.

 

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