Beach Energy Limited · ASX:BPT
Beach Energy — Investor Presentation (June 2006)
35 slides from Beach Energy's investor presentation, Jun 20, 2006
Slide 1: Investors Presentation
Investors Presentation June 2006
Slide 2: Today's Topics
Today’s Topics e Status of the Company e Financial Year 06 to date e Key Projects e Outlook
Slide 3: Status of the Company
Status of the Company
Slide 4: Highlights
Highlights e ASX 300 petroleum E&P company — ASX 200 in contention e Forbes Asia “Best Under a Billion” Award — December 2005 e Strong financial position
Slide 5: Strength and Balance
Strength and Balance e Strong, balanced & diversified portfolio: « Geographical diversity: « Petroleum production from Qld, SA, Vic » Exploration across Australia and in NZ e Commodity diversity: « Strong oil production (set to quadruple in next two years) » Coal Seam Gas production from Tipton West
Slide 6: Corporate Structure
Corporate Structure e Issued capital (at 6 June 2006): §16.2 million ordinary shares (BPT) ® 19.6 million options (A$0.60 exercise price, expiring on 30 June 2006) (BPTO) e 47.36 million options (A$1.00 exercise price, expiring on 30 September 2006) (BPTOB) e Fully diluted market capitalisation of a
Slide 7: Board and Management
Board and Management Strong and cohesive Board & Management team with broad financial expertise, public company administration, strong operational background in oil & gas industry, management of large projects and Corporations Law
Slide 8: Five Years of Strong Growth
Five Years of Strong Growth italisation
Slide 9: Profitability vs Oil Price
Profitability vs Oil Price 25 20 Net Profit after 15 Tax $miilion $A /bbl 10 5 0 ot 02 03 04 05 Financial Year
Slide 10: Diversified Portfolio
Diversified Portfolio e Beach’s activities have expanded across Australasia e No longer just a Cooper Basin player e Oil & gas reserves and production from three basins
Slide 11: Successful Drilling Program
Successful Drilling Program Wels 45% com mercial success rate 20, 154 Number of Wells 19| 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 {] Unsuccessful ™ Success-Gas I Success-Oil
Slide 12: Reserves & Production Growth
Reserves & Production Growth Annual Production 1.5 Millions of | 1 Barrels Olt Equivalent 0.5 production Cul ot 02 03 04 05 o6 forecast Proved plus Probable Reserves Financial Year @ Tipton West an 2 . Millions of 20) 8 Gippsland Barrels Oil @ Otway Equivatent 15 410 South Australia 5 @ Queensland o
Slide 13: Revenue Growth
Revenue Growth Gross Revenue $ million 1404 1204 1004 eo 04 404 204 Surat OGippsiand wOway asa wap onot a1o2 02103 03104 405, 05/06-Feast Financial Year
Slide 14: Low Cost Base Maintained
Low Cost Base Maintained Production Offshore Costs (2P Reserves) OPEX (A$/bb)} $10.00 / bbl Transport (A$/bbl) Royalty (A$/bbl) RRT ~$20.00/bbI Total Costs (A$/bbl) $30.00 / bbI _Netback (A$/bbl)_ 44
Slide 15: Five Year Financial Performance
Five Year Financial Performance Sale and revaluation of 60 AZA shares 50 (A$34.7 m) 1H01 2HO1 1H02 2HO2 1H03 2HO3 1H04 2HO04 1HO5 2HO5 1H06 Half Year @ Revenue (A$million) & EBIT (A$million) &@ EPS (cents per share)
Slide 16: Market Capitalisation
Market Capitalisation A$ million @ Aug ‘05 Capital Raising -- $ 77 million Dec '03 Capital Raising -- $ 32 million 0 Dec '01 Capital Raising -- $15 million Base Move to 100% of Bodaila oilfields STE Le Ee. 2001 2004 2005
Slide 17: Yield + Capital Growth (26 Apr '06)
Yield + Capital Growth (26 Apr ’06) Cumulative Dividend Yield (cps) Share Price + Option Price ($/sh) Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec. Jun- Mar- Apr 98 99 99 900 OO O01 O1 O2 OF2 O38 03 04 04 05 O06 06 #4 Cumulative Dividend Yield -# Share Price + Option Value (1) | S
Slide 18: yi
yi
Slide 19: Highlights First Half 2005/06
Highlights First Half 2005/06 Record oil production Oil sales @ A$84.45/bbI Increased reserves Sale of AZA shares net approx.$20 million NPAT for 1H of $31.3 million (compared with NON alusted NPAT of $20.3 million for full year -05
Slide 20: Comparison with Full FY 03/04 & 04/05
Comparison with Full FY 03/04 & 04/05 HALE YEAR DEC OS eae ae (138) (243) (21160) 72.215.
Slide 21: Second Half Highlights --YTD
Second Half Highlights --YTD e Bass Strait BMG Project (Vic): & & 0.8 million barrels produced & sold from Basker-2 4 further development wells drilled e Cooper/Eromanga Basins (SA & Qld): & & & & 8 wells drilled — 7 successful Middleton & Udacha Gas Discoveries Oil discoveries at Silver Sands, Harp
Slide 22: Key Projects
Key Projects TNC ac
Slide 23: Cooper-Eromanga Basin
Cooper-Eromanga Basin * Historically, Beach’s core area + Oil production of ~1 million barrels/year from more than 30 oilfields + Oil focus, but emerging gas producer + Very active exploration program (~20 wells/year)
Slide 24: Basker-Manta-Gummy Project
Basker-Manta-Gummy Project BMG Project (BPT 50%) Oil Reserves .. 30.1 mmb (Proved and Probable) 2P Gas Contingent Gas Resource -- 94 BCF Five wells drilled and completed as producers Maiden oil sales Jan 2006 Full Field Production due to commence in late 3rd Quarter 2006 Early gas development under
Slide 25: A Major Project Achievement
A Major Project Achievement e Effective cost of acquisition ~A$2/BBL e First oil in 11 months from concept e First FPSO in Bass Strait e Small footprint e First dedicated shuttle tanker in Australia e First side-to-side/ship-to- ship transfer in Australia
Slide 26: Tipton West: Coal Seam Gas
Tipton West: Coal Seam Gas Beach 40% e Potentially one of Australia’s largest onshore gas resources (2 TCF Possible) e Close to markets & pipelines e Initial gas sales agreement with Braemar Power Station Project for 13.3 PJ p.a. e Beach funding Stage One development ($35 million — 90 wells plus inf
Slide 27: Tipton West
Tipton West Production / Sales Forecast Forecast Production & Sales TJiday C1 Additional Options EJ Ergon Sales [ma Braemar Sales Phase 1 Production Forecast
Slide 28: Outlook
Outlook
Slide 29: Outlook: Production Growth
Outlook: Production Growth 6+ ; B Tipton 57 E1BMG - p50 ; | BMG - p90 4 & Otway @ Cooper/Eromanga}- Million boe Financial Years
Slide 30: Outlook: Revenue Growth
Outlook: Revenue Growth Gross Revenue $ million 200. 1804 1604 1404 4204 004 204 m Surat OGippsiand mOway asa malo 0/04 avez 02/03 03/04 04/05 95/06-feast Target Financial Year
Slide 31: Outlook: Extensive Drilling Wells in 06/07
Outlook: Extensive Drilling 40 Wells in 06/07 40; 354 304 254 Number of Wells 29) 151 10; 57 0 2000/01 2002/03 2004/05 2006/07 E] Unsuccessful li Success-Gas fl Success-Oil [1 New wells
Slide 32: High Reward Exploration
High Reward Exploration e New Zealand (BPT 20%) Cutter-1, August Target 80 mmbbl oil potential Hurricane-2 e Carnarvon (BPT 10%) Hurricane-2, November Target 40-50 mmbbI oil potential e Offshore Otway Basin (BPT 50%) 3D Seismic September Target >1 TCF gas potential : Drill 2007 4 : Oe Cutter-1 7
Slide 33: Strategic Investment in Great Artesian Oil and Gas
Strategic Investment in Great Artesian Oil and Gas e Beach has acquired 19.9% of GOG e Expands asset base ne both directly and indirectly on Cooper Western Flank e Multitude of prospects and leads e Strengthens position for independent oil & gas development & marketing in region
Slide 34: Strength for Growth
Strength for Growth Strong oil reserves Base * Increasing oil Production * Increasing gas reserves potential ¢ Active diversified exploration program « Proven performance * Quality management
Slide 35: Disclaimer
Disclaimer This presentation may contain forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these staternents are reasonable but they may be affected by a variety of variables and changes in underlying