Beach Energy Limited · ASX:BPT
Beach Energy — Corporate Update (April 2021)
19 slides from Beach Energy's corporate update, Apr 30, 2021
Slide 1: Business Update
30 APRIL 2021 Business Update
Slide 2: Compliance statements
Compliance statements Disclaimer Assumptions Remaining FY21 guidance is uncertain and subject to change. Q4 FY21 guidance has been estimated on the basis of the This presentation contains forward looking statements that are subject to risk factors associated with oil, gas and following assumptions:
Slide 3: FY21 Third Quarter update
FY21 Third Quarter update Q3 FY21 production down 5% on Q2 FY21 and 15% on Q3 FY20, impacted by: Prior corresponding period Prior period ▪ Reduced reservoir performance and natural field decline, Q3 FY21 Q3 FY20 Change (%) Q2 FY21 Change (%) predominately from Cooper Basin Western Flank oil fields P
Slide 4: Overview
Overview Downgrade to Western Flank 2P oil and gas reserves Recent Western Flank oil production decline led to urgent review of 2P reserves 13.4 MMbbl net downgrade to Western Flank 2P oil reserves1,2 5.0 MMboe net downgrade to Western Flank 2P gas reserves1,3 FY21 pro forma4 production guidance dow
Slide 5: Current status
Current status Net downgrade to Western Flank 2P oil and gas reserves1, equates to ~5% of Company 2P reserves at 30 June 2020 WESTERN FLANK 2P OIL AND GAS RESERVE DOWNGRADE Annual reserve audit underway7, to be completed in August 2021 MMboe WESTERN FLANK 2P OIL RESERVES SINCE END-FY16 (MMbbls) Baue
Slide 6: Outlook
Outlook Impacts on FY21 guidance FY21 GUIDANCE UPDATE Five-year outlook is withdrawn and Beach will no longer Pre-acquisition guidance Pro-forma guidance1 Updated pro-forma guidance provide a five-year outlook in its current form5 Production (MMboe) 25.5 – 26.5 26.5 – 27.5 25.2 – 25.7 Capital expend
Slide 7: Namur McKinlay Birkhead overview
Western Flank oil overview KEY FORMATIONS ACROSS THE WESTERN FLANK OIL ACREAGE Namur ▪ Low complexity ▪ Uncertainty on quantifying reserves for low relief structural closes. ▪ 24% of Western Flank oil production in FY20 McKinlay ▪ Greater reservoir complexity than the Namur ▪ 63% of Western Flank oi
Slide 8: Western Flank oil background
Western Flank oil background Reversal of FY16 Western Flank oil decline accelerated balance sheet deleveraging to ~1% net gearing at 31 March 2021 Western Flank oil production was in decline by FY16, with high future Introduction of horizontal drilling and development of McKinlay reservoir uncertain
Slide 9: The Bauer oil field
The Bauer oil field Complex field that has grown ~10x since original estimates Seismic data captures the structure, but underestimated its Flat structure and large areal extent makes Seismically Actual field true size assessing recoverable volumes on seismic defined extension challenging structural
Slide 10: Bauer oil field update
Bauer oil field update New production information now indicates 2P reserves downgrade BAUER – DISCLOSED TO MARKET AT FEBRUARY 2021 RESULT BAUER UPDATE ▪ New Bauer reservoir model developed incorporating FY21 drilling ▪ 18 Bauer McKinlay horizontal development wells drilled in 2020 results, supported
Slide 11: Non-Bauer Western Flank oil field issues
Non-Bauer Western Flank oil field issues Recent production data shows Bauer model likely not applicable across all Western Flank oil fields 28 fields outside Bauer made FY21 drilling program highlighted the Wells typically require 9–12 months to establish decline behaviour2 difficulty in prognosing
Slide 12: Western Flank gas
Western Flank gas New production and pressure data reduces overall 2P reserves of Western Flank gas fields Prior 2P reserves at Lowry were based on Lowry field produced ~41% of Western volumetric mapping rather than material Flank gas volumes during FY20 balance Pressure and production data obtained
Slide 13: Future of the Western Flank oil and gas assets
Future of the Western Flank oil and gas assets Future focus on measured exploration and appraisal drilling of prospective acreage <$6 per bbl field operating costs across Western Flank oil assets during FYTD Region supported by well-developed existing infrastructure Future drilling based on new West
Slide 14: A strategically diversified portfolio
A strategically diversified portfolio 2017 Lattice acquisition positioned Beach beyond Western Flank oil and gas assets SINGLE ASSET RISK AND UNCERTAINTY OF WESTERN FLANK ASSETS WAS A KEY DRIVER OF DIVERSIFICATION End FY16 End FY20 ▪ Single basin (Cooper) ▪ Six production hubs across five basins ▪ R
Slide 15: Delivering on strategy
Delivering on strategy Continuing to deliver on our key growth projects Growth projects targeting high returning, long-life and stable gas revenue Two exploration successes to Taken Final Investment Decision for commence FY21 Otway drilling ✓ program with discovery of Enterprise ✓ Waitsia Gas Projec
Slide 16: High quality growth
High quality growth Continuing to re-invest in our high-returning, diversified gas business Lower production across Cooper Basin Western Flank oil and gas assets, offset by: ▪ Production uplift expected to fill Otway Gas Plant by mid-FY23. Early exploration success in the FY21 offshore Otway drillin
Slide 17: Key takeaways
Key takeaways Despite the Western Flank downgrade, Beach is delivering its growth strategy Recent Western Flank oil production decline led to urgent review of 2P reserves 18.4 MMboe net downgrade to Western Flank 2P oil and gas reserves1,2 FY21 pro forma3 production guidance downgraded to 25.2 – 25.
Slide 18: Business Update Presentation Q&A
B U S I N E S S U P D AT E P R E S E N TAT I O N Q&A
Slide 19: Beach Energy Limited Investor Relations
Beach Energy Limited Level 8, 80 Flinders Street Adelaide SA 5000 Australia T: +61 8 8338 2833 F: +61 8 8338 2336 beachenergy.com.au Investor Relations Chris Morbey, Head of Investor Relations Adam Stokes, Investor Relations Advisor T: +61 8 8338 2833