Petsec Energy has booked a plunge in first quarter revenue after US production and gas prices fell.

The company on Wednesday reported net revenue for the three months to March 31 of $US1.8 million ($A1.74 million), down 62 per cent compared to the same period in 2011.

It also unveiled a previously flagged $US600,000 ($A579,122) loss and warned its earnings were likely to remain in the red for the short term.

Petsec’s revenue slump was attributable partly to a 30 per cent fall in the average gas equivalent sales price received by Petsec during the period.

Natural gas prices have slumped in the US because of a glut caused by the shale gas boom, coupled with lower than usual consumption for home heating due to a warmer than expected winter.

Petsec’s lower revenue was also driven by a 31 per cent fall in March quarter oil and gas production to 559 million cubic feet of gas equivalent (MMcfe), compared to the previous corresponding period.

Petsec said production from its Marathon gas and condensate field offshore Louisiana was still constrained by third party pipeline capacity limitations, while its Main Pass 270 A-3 well remained shut-in for technical reasons.

As flagged in its December quarter report, Petsec booked loss before interest, tax, depreciation, amortisation and exploration expenses of $US600,000 ($A579,122.63).

Petsec said its earnings before interest, tax, depreciation, amortisation and exploration expenses were expected to remain in the red for the short-term.

It expected earnings to improve when capacity constraints in the Marathon field are remedied, production from the Main Pass 270 A-3 well is restored and natural gas prices improve.

The oil and gas producer continues leasing activities for US shale oil projects, but says details will be kept confidential for competitive reasons until the leases are largely secured.

Shares in Petsec were steady at 18.5 cents.