Beach Energy Limited · ASX:BPT
Beach Energy — Citi Australia and New Zealand 7th Annual Investment Conference (March 2010)
22 slides from Beach Energy's conference presentation, Mar 9, 2010
Slide 1: Positioning for long-term growth
Beach Energy Limited For personal use only Positioning for long-term growth Citi Australia and New Zealand 7th Annual Investment Conference London, 9 March 2010 Hector Gordon Chief Executive Officer 1
Slide 2: Compliance statements
Compliance statements For personal use only Disclaimer • This presentation contains forward looking statements that are subject to risk factors associated with oil, gas, geothermal and related businesses. It is believed that the expectations reflected in these statements are reasonable but they may
Slide 3: Today's presentation
Today’s presentation For personal use only Overview of Beach Positioning for long- Energy Limited term growth • Strategy • What • Base business • Where • Growth potential • How 3
Slide 4: Beach Energy Limited – A compelling value proposition
Beach Energy Limited (ASX : BPT) – A compelling value proposition For personal use only • 2P reserves of 66 MMboe Strong base • Sustainable long-term oil and gas production business • FY 2010 production guidance of 8.0 MMboe • $118 million cash and zero debt** • Huge Cooper Basin shale gas resource
Slide 5: Corporate framework
Corporate framework For personal use only • Consistent, targeted growth: – Long-term cash flow, production and reserves – Value driven investments • Thinking ahead of the pack: – Early entry, low risk, high return – Participation in emerging technologies and opportunities • Balanced portfolio: – 60:
Slide 6: Reserves & resources snapshot - June 2009
Reserves & resources snapshot - 30 June 2009 For personal use only 2P Reserves: 2P Reserves & Contingent 66 MMboe Resources: 359 MMboe Cooper / Eromanga Gippsland Egypt Cooper / Eromanga 2P Gippsland Other A solid and enviable base from which to grow, plus a substantial portfolio of emerging opportu
Slide 7: Reserves and production
Reserves and production For personal use only Production 2P Reserves 12 160 140 10 120 8 100 MMboe MMboe 6 80 60 4 40 2 20 0 0 FY 2007 FY2008 FY 2009 FY 2010 est. FY 2006 FY2007 FY 2008 FY 2009 Gas & Gas Liquids Gas & Gas Liquids Oil Oil • Consistent production performance • Solid reserves growth in
Slide 8: The 'base business' – Cooper Basin production, development & exploration
The ‘base business’ – Cooper Basin production, development & exploration For personal use only • Cooper Basin is a key supplier of onshore oil and gas to eastern Australian markets: – Diversified asset, product and market mix • Beach participates in approximately 300 exploration and production licen
Slide 9: The 'base business' – Conventional Cooper Basin oil and gas
The ‘base business’ – Conventional Cooper Basin oil and gas For personal use only Cooper Basin Oil Cooper Basin Gas 2P reserves 14.3 MMbbl 2P reserves 228 PJ & 7.4 MMboe • Comprised of three key areas: • Gas & ethane contracts with major – Western flank (Beach operated) retailers and end consumers –
Slide 10: The 'base business' - Gulf of Suez: First oil within months
The ‘base business’ - Gulf of Suez: First oil within months For personal use only • Beach 20% interest • High potential Gulf of Suez acreage • Three existing oil discoveries: – NS 377 and 385 („near shore fields‟) – NS 394 „Burtocal‟ • First oil expected Q3 2010 from near shore fields • Seeking new
Slide 11: Expanding the base business – Positioning for long-term Australian gas supply
Expanding the base business – Positioning for long-term Australian gas supply For personal use only • Beach is seeking to grow its base gas business in eastern Australian markets from the Cooper Basin • Good long-term growth opportunities for eastern Australian gas resources: – Strong projected dome
Slide 12: Cooper Basin - Significant shale gas potential
Cooper Basin - Significant shale gas potential For personal use only • Early identification of Cooper Basin shale gas potential • Captured prospective acreage with high equity participation • Huge resource potential: – Comparable to combined NSW and Queensland coal seam gas volume • Access to multip
Slide 13: Nappamerri Trough – Potential gas in place greater than Tcf
Nappamerri Trough – Potential gas in place greater than 200 Tcf For personal use only • Extensive and thick shale packages • Similar properties to the best US shale plays • Nappamerri Trough total area ~ 10,000 km2 (~ 3,800 sq miles) • Potential gas in place 20 – 100 Bcf/km2 (50 – 250 Bcf/sq mile) •
Slide 14: Multiple long-term shale gas market options
Multiple long-term shale gas market options For personal use only • Good prospects to increase Existing Cooper Basin supply over time customers – extension contracts • New domestic gas supply Existing opportunities include: customers – Export LNG incremental – Power generation contracts – Feedstock
Slide 15: When will Cooper Basin shale gas value recognition occur?
When will Cooper Basin shale gas value recognition occur? For personal use only Some recent US shale gas transactions Deal Location Date Value Mitsui - Anadarko Marcellus Feb 10 US$1.4b Total - Chesapeake Barnett Jan 10 US$2.25b Included 1 million acres of various ExxonMobil – XTO Energy shale gas a
Slide 16: Some other long-term growth opportunities – 'Big oil' and 'big gas'
Some other long-term growth opportunities – ‘Big oil’ and ‘big gas’ For personal use only Papua New Guinea Tanzania Australia New Zealand 16
Slide 17: Tanzania: East African Rift - An emerging 'big oil' province
Tanzania: East African Rift - An emerging ‘big oil’ province For personal use only • Beach 100% • Under - explored, high potential region • Significant success in nearby analogous areas (Uganda) • Recent M&A activity in Uganda highlights regional potential • Potential for large (> 200+ MMbbl) discov
Slide 18: Offshore 'big gas' opportunities
Offshore ‘big gas’ opportunities For personal use only Browse Basin Gulf of Papua Canterbury Basin • LNG supply potential from existing portfolio: – Burnside (multi-Tcf discovery made in 2009, Beach 7.34%) – Pandora (mean gas resource approx. 0.8 Tcf, Beach 6.36%) – Barque gas prospect (multi-Tcf po
Slide 19: Beach Energy
Beach Energy For personal use only • Sustainable underlying base business: – Long-life reserves – Long-term production and cash-flow – Asset, product and market diversity • Tangible growth potential targeting regionally specific opportunities: – Cooper Basin shale gas – Egypt – Game-changing explora
Slide 20: Reference Slides
For personal use only Reference Slides 20
Slide 21: Corporate strategy
Corporate strategy For personal use only Aim: To double production and reserves within 2 - 5 years Risk / Reward Timeframe: 2 – 5 years Timeframe: 5 – 10 years Low • Add up to 20 MMboe new reserves via • Continue Cooper exploration for oil and (60*) exploration unconventional gas • Develop contingen
Slide 22: For personal use only
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Beach Energy — Citi Australia and New Zealand 7th Annual Investment Conference (March 2010) on 6ix