Slide 1: 2008 Results Briefing
For personal use only 2008 Results Briefing
Slide 2: Disclaimer and important notice
2 Disclaimer and important notice For personal use only This presentation contains forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a varie
Slide 3: Company overview
3 Company overview For personal use only Net reserves of 145 mmboe A diversified and growing ASX 200 company Track record of capturing value adding opportunities Quality asset and infrastructure holdings in Central and Eastern Australia Domestic and international expansions underway via disciplined
Slide 4: Company Strategy
4 Company Strategy For personal use only Creating shareholder value by… Exploiting existing asset base Appraisal and development Near-field exploration Improving margins Creating ‘step change’ potential via high value exploration Drilling high impact prospects Portfolio optimisation to achieve an ap
Slide 5: FY 2008 Achievements
5 FY 2008 Achievements For personal use only Record sales revenue Successfully raised of A$564 million A$191 million of new capital to fund Egyptian acquisitions Total oil and gas reserves increased from 90 to 145 Completed sale of 2 x 10% mmboe interests in BMG for ~A$123 million each Cooper Basin
Slide 6: Financial Overview FY 2008
6 Financial Overview FY 2008 For personal use only Key Statistics Key Financing Activities Production: Raised A$191 million to fund 9.3 mmboe – oil production up by 14% Egyptian acquisitions Sales Revenue: A$246 million proceeds on sale A$564 million – 19% increase of 20% BMG interest Operating Cash
Slide 7: Profit – Significant Items
7 Profit – Significant Items For personal use only Net profit after tax (NPAT) 2008 A$m 2007 A$m NPAT 63.7 103.8 Significant Items Remove BMG Sale (64.2) (73.4) Remove unrealised commodity hedge loss / (gain) 12.3 (30.3) Remove commodity hedge close out 50.4 – Remove recognition of Ramelius investme
Slide 8: Comparison of Normalised NPAT
8 Comparison of Normalised NPAT use only 140 personal 120 27.5 13.3 14.4 100 million 58.6 Depreciation 36.9 80 Net Interest Tax and Other 60 52.7 For A$ 40 31.2 Hedging Gross Profit 20 0 Total movement A$21.5 million Normalised Normalised FY 07 NPAT FY 08 NPAT
Slide 9: Gross profit movement
9 Sales revenue up by A$147 million as Gross profit a result of commodity prices, offset by A$18 million reduction in volumes and A$54 million reduction due to FX comparison For personal use only increases. Production cost increase driven by full year of BMG operations and increased royalties arisin
Slide 10: Shortened Hedging Profile
10 Shortened Hedging Profile For personal use only All commodity fixed hedging Total number of fixed hedged will run out by June 2009 barrels vs production (mmboe) Closed out capped price hedges 10 over 500 kbbls of future production 9 for A$50 million, in June 2008 Barrels (millions) 8 Subsequent t
Slide 11: Upside to hedges closed out
11 Upside to hedges closed out For personal use only Effective tapis close out price Breakeven tapis price for close out of hedges for capped price hedges was US$113/bbl Year to date average US $130 150 Required for remainder of 140 close-out, tapis US $105 130 Upside US$/bbl 120 Break even US $113
Slide 12: Exploration & Development Expenditure
12 Exploration & Development Expenditure For personal use only 2008 A$m 2009 A$m Actual Budget Development & Appraisal Cooper Oil 85.6 55.8 Cooper Gas 79.2 79.4 BMG 42.6 57.4 Tipton 6.2 7.4 Egypt – 26.3 Subtotal 213.6 226.3 Exploration Aust Onshore 17.1 37.5 Offshore/International 29.3 64.0 Subtotal
Slide 13: Reserves and Production
13 Reserves and Production personal use only 30 June 2008 2P reserves 145 mmboe (62% increase) Significant scope to add to 2P reserves in FY 09 BMG ~16 mmboe and Egypt ~8 mmb FY 2008 production 9.3 mmboe Reserves by asset Production by commodity 160 10 140 9 120 8 7 100 mmboe mmboe 6 80 5 For 60 4 4
Slide 14: Portfolio of Producing Assets
For personal use only 14 1 2 Portfolio of 3 Producing Assets 1 Cooper Eromanga 2 Surat CSG 3 Gippsland Oil
Slide 15: Cooper Eromanga Oil
15 Cooper Eromanga For personal use only Oil 2P oil reserves* 15 mmbbl FY08 production ~2 mmbbl Added ~5 mmbbl of 2P reserves at F & D cost of ~A$22 / bbl Production and reserves expected to increase for at least the next 2–3 years Western flank discoveries increase overall margins Excellent balance
Slide 16: Cooper Eromanga Gas
16 Cooper Eromanga For personal use only Gas 2P reserves* 48 mmboe 238 PJ sales gas and ethane 7.1 mmboe gas liquids FY08 production ~6 mmboe Long term gas contracts supplemented by high margin spot contracts Gas prices trending higher plus potential to develop unconventional resources Large scale C
Slide 17: Surat Coal Seam Gas
17 Surat Coal Seam Gas For personal use only 2P reserves* 443 PJ (~76 mmboe) 282% upgrade on 30 June 2007 reserves 3P reserves 831 PJ Large reserve, resource (and land) position with volumes expected to build Good potential for an additional 2,000 PJ of reserves from land position of ~3,000 km2 Succ
Slide 18: Surat Coal Seam Gas – Becoming very 'hot' LNG property
18 Surat Coal Seam Gas Becoming very ‘hot’ LNG property For personal use only LNG deal flow has underpinned value for Queensland CSG assets, eg Santos – Petronas Arrow – Shell Origin – BG Substantially higher valuations now placed on CSG assets Deal valuations range, but average A$1.32 / GJ (2P) and
Slide 19: Other Assets with LNG Potential
19 Other Assets with LNG Potential For personal use only
Slide 20: Gippsland Oil
For personal use only 20 Gippsland Oil 2P oil reserves* 5.9 mmbbl Large contingent gas resource of ~16.5 mmboe Basker – 6 ST1 connection in Sep 08 Substantial two rig drilling campaign for FY 09 and FY 10 LOI signed for replacement 850,000 bbl capacity FPSO (Suezmax tanker) Five years + options to e
Slide 21: Global exploration portfolio
21 Global exploration portfolio For personal use only Measured balance of risk and reward 1 2 3 4 5 6 7 8 1 SPAIN 2 ALBANIA 3 EGYPT 4 TANZANIA 5 CARVARVON 6 COOPER EROMANGA 7 BASS & OTWAY 8 CANTERBURY BASIN
Slide 22: Global exploration
22 Global exploration For personal use only Expanding domestic and international activity Key areas of interest include: Australasia Middle East / North Africa Parts of Central Africa Parts of Europe Successful in recently acquiring* highly prospective interests in: Egypt Tanzania Albania * Some acq
Slide 23: New ventures strategy
23 New ventures strategy For personal use only Capture technically robust value adding opportunities ‘Step-change’ potential Balance of mature to emerging hydrocarbon provinces Satisfy rigorous investment criteria, including Multiple prospects / play types Technical fit Joint venture and sovereign r
Slide 24: Significant near-term exploration potential
24 Significant near-term exploration potential For personal use only Beach is exposed to ~240 mmboe* Net Beach mmboe (Unrisked mean) (unrisked) of possible exploration drilling 70 in the next few years Risked potential ~50–100 mmboe 60 High impact prospects will be drilled 50 in the following areas
Slide 25: FY Outlook
25 FY 09 Outlook For personal use only Production estimated ~8–10 mmboe Significant exploration and appraisal program Offshore SE Australia Egypt Gippsland Oil Ongoing development program Cooper Eromanga Gippsland Oil Surat Geothermal Paralana Deep to be drilled in 2009
Slide 26: For personal use only
For personal use only