Beach Energy Limited · ASX:BPT
Beach Energy — Beach Petroleum — Investor Presentation (March 2007)
32 slides from Beach Energy's investor presentation, Mar 2, 2007
Slide 1: Beach Petroleum Limited Investors Presentation
BEACH ue PETROLEUM, Beach Petroleum Limited Investors Presentation | Reg Nelson -- Managing Director | Hector Gordon — Chief Operating Ofticer | March 2007
Slide 2: Today's Topics
Today’s Topics a Overview of Current Status a Financial results - 1H FY 07 a Operations Review a Outlook
Slide 3: Australia's Premium Mid-Cap E&P
Australia’s Premium Mid-Cap E&P | Beach is in the top tier of mid cap Australian E&P ... .«. with nearly double the reserves of the next largest peer _ Australian Oil & Gas Mid Cap Companies by Mrk Cap AUD$mm 2 8 Ss BPT AWE ROC AED AOE QGC AZA NXS ARQ HZN NDO TAP mmboe 120 100 Australian Oil & Gas M
Slide 4: Company Attributes
Company Attributes a High quality, balanced portfolio of assets with solid reserves base w Strong, long term cash flow potential (Reserves:Production ratio of ~ 10 years) @ Proven value manager of assets a Diversified portfolio —- geographic & commodities: » Oil, gas, gas liquids, geothermal » Offsh
Slide 5: Shareholder Return
Shareholder Return Shareholder Return 100% 4 90% + 80% 70% 7 60% J 50% 4 40% 4 30% J 20% + 10% 4 0% 86.00% 34.00% Total Shareholder Return 2yr 3yr
Slide 6: Corporate Structure
Corporate Structure Market Issued Shares & Capitalisation Options (@ $1.20 /share) 884.0 million ordinary shares $1.07 billion 240, 8.1 million employee options EX$1.406 (to 30 Nov 2013) Admitted to ASX 200 in September 2006 Jan 2007 Top 62.32% of shareholders @ Institutional @ Corporates/Non-profit
Slide 7: Key Revenue-earning Projects
Key Revenue-earning Projects Cooper Basin: a Oil, gas and liquids — over 200 fields « Long-term gas contracts « Oil production forecast to increase through Cooper Oil Project « Moomba hub connects to eastern seaboard pipeline system « Liquids pipeline to Port Bonython & Basker-Manta-Gummy (BMG) Proj
Slide 8: 1H - Financial Year 07
BEACH ao PETROLEUM, Beach Petroleum Limited ih iia 1H - Financial Year 07 March 2007
Slide 9: Reserves -- June 2006
Reserves -- 30 June 2006 Proved and Probable Reserves Area ; Gas Oil Oil Liquids Sales Gas Equivalent (mmb) (mmboe) (P53) (mmboe) Cooper ii 7 298 70 Gippsland 20 - - 20 Surat - - 70 12 TOTAL 31 7 368 101
Slide 10: Production — 1H FY
Production — 1H FY 07 Net Production ~ LH FY07 Area Ol Ol Gas Liquids | Sales Gas Equivalent (mmb) (mmboe) (P3) (mmboe) Cooper- Beach 0.5 - - 05 Cooper- Delhi 0.4 0.6 19 4.1 Gippsiand 0.04 - - 0.04 TOTAL 0.9 0.6 3.2 47
Slide 11: Sales & Revenue — 1H FY
Sales & Revenue — 1H FY 07 Production Sales Revenue oll 0.9 mmb 0.8 mmb $66 million Gas / Gas Liquids 3.8 mmboe 3.9 mmboe $121 million ai noe - 0.7 mmboe $28 million TOTAL 4.7 mmboe 5.4 mmboe $214 million i
Slide 12: Profit & Loss — 1H FY
Profit & Loss — 1H FY 07 Beach Delhi Total ($ million) ($ million) ($ million) Gross Revenue (ex 3" party) 38 149 187 Production Costs 14 76 90 Dep’‘n & Amort. 7 40 47 Operating Profit 18 38 56 Other Income/Expenses (2) 22 19 Hedging (5) i) (5) ‘Transaction Costs (12) (25) (37) Profit Before Tax (2)
Slide 13: Operations Review
Operations Review eee 13
Slide 14: Basker-Manta-Gummy
Basker-Manta-Gummy Beach 50% @ Oil Reserves (gross) wo =IP: 13 mmb a 2P: 39 mmb 6s 3P: 77 mrab @ Contingent Resource (gross) » Low 120P]}& 4mmb ~ 24 mmboe « Best 380 PJ] & 9mmb ~ 72 mmboe » High 820 P) & 17 mmb ~ 150 mmboe id
Slide 15: Basker-Manta-Gummy
Basker-Manta-Gummy Beach 50% Current Status « Production Commenced 17 December. a Higher than expected GOR (2,000 actual vs 1,200 expected). « Jan-Feb Production averaged ~10,000 bopd but building. Bi Expon diode « Operational issues, mma ee primarily with me compression facilities being addressed.
Slide 16: Basker-Manta-Gummy: Status at March
Basker-Manta-Gummy: Beach 50% Status at_i March a Producing ~18,500 Bopd from Manta-2A, Basker 2, 3 & 4 » Gas being injected into Basker-4 (632 mmcfd) « Medium term target 15-20,000 bopd a Annual OPEX «$75 million « Beach has RRT Credits of ~$280 million — important when accessing future CAPEX self
Slide 17: Basker-Manta-Gummy Project Development Plans - Oil
Basker-Manta-Gummy Beach 50% Project Development Plans - Oil « Upto 3 further Basker Wells addressing ~15mmb of undeveloped 2P reserves a» Cost — $250 - $300 million « Drilling ..... Basker-6 Late 2007 (remainder mid 2008) « Basker-6 online early 2008 x All numbers are for 100% of project. Proposed
Slide 18: Basker-Manta-Gummy Development Plans — Gas
Basker-Manta-Gummy Beach 50% Development Plans — Gas ia aS Brood Wai Manet « Aiming for Project sanction 2°4 Quarter ‘07 a Drill up to 3 wells in Manta & Gummy Fields in 2008 « Gas Pipeline to Shore « Gas Processing Facility (prob offshore) « Cost ~$500 million : "Bisley sounet «! re Seine + . 4 ioi
Slide 19: Cooper-Eromanga Basins
Cooper-Eromanga Basins 19)
Slide 20: Cooper-Eromanga Basin Highlights -- 1H FY07
Cooper-Eromanga Basin Highlights -- 1H FYOZ a 13 Exploration Wells drilled (38% Success Rate) a Callawonga Oil Discovery 2 Online in Nov @ 1,000 bopd (net) » Reserves ~1 mmb (net) a Cooper Oil Project Success » (11 wells, 100% success) 20...
Slide 21: Cooper Oil Program
Cooper Oil Program a Development & Appraisal Program operated by STO in existing oil fields m Beach Equity ~25% (but 38.5% of Naccowlah Block) a ~700 mmb OOIP in Cooper Basin m Recovery from existing wells ~200 mmb (28%) m Aim to increase recovery factor by 5-10% >> additional 35-70 mmb w Low risk/h
Slide 22: Cooper Oil Project — Beach Netback Analysis
Cooper-Eromanga Basin COOPER OIL PROJECT — BEACH NETBACK ANALYSIS AS/bbl Oil Price 60.00 75.00 90.00 Finding & Devi't 22.00 22.00 22.00 Production Costs 10.00 10.00 10.00 Royalties 13.00 20.00 27.00 Netback 15.00 23.00 31.00 22...
Slide 23: Cooper Oil Project
Cooper-Eromanga Basin Cooper Oil Project a Naccowlah Block-(Beach 38.5%) = 24 wells » 13 Exploration » 7 Appraisal » 4 Development a Programme commences March 2007 » Cost $21 million (net) « Expected Reserves ~1 mmb (net) a Expected Initial Procuction 1,000 BOPD (net) « Expected Value $15-25 million
Slide 24: Tipton West Coal Seam Gas
Tipton West Coal Seam Gas Beach 40% @ Proved & Probable (2P) reserves: 174 PJ @ Proved, Probable & Possible (3P) Reserves: 2,300 PJ @ Close to markets & pipelines ® High Exploration Potential 24...
Slide 25: Tipton West Coal Seam Gas
Tipton West Coal Seam Gas Beach 40% @ Phase 1 Development ~ 82 wells a Development Drilling Completed « Gas Sales Commenced in February « Target Rate 30 Ti/day @ Exploration Potential « Taroom Coal Measures « Dalby South Block Corehole Program 25...
Slide 26: High Reward Exploration
High Reward Exploration @ Carnarvon (BPT 10%) Hurricane-2, Q2 ‘07 Target 40-50 mmbbI oil potential a Offshore New Zealand Barque-1, Q1 ‘08 Hurricane-2 = Offshore Otway Basin (BPT 50%) 3D Seismic Q1 ‘07 Target >1 TCF gas potential Drill FY 07 = Production Testi Glenaire-1 (Onshore Otway) Champagne Cr
Slide 27: Callabonna
Callabonna Project inferproied Outline |, ‘of Callabonna Granite. Paralana 2 Paralana 18 itPalister inter (Owteropping Thera fremilous eran) @ > Adelaidean “Paralana ( / <<. Project oo : Los “Arnaroole Wins . ut Poontana Basin ‘insilating coven ay °
Slide 28: Outlook
BEACH ao PETROLEUM, Beach Petroleum Limited ih iia Outlook | March 2007
Slide 29: Value per boe
Value per boe Beach trades in the bottom third of its peer on $/boe ... Value per BOE 53.6 36.9 31.5 31.3 25.1 20.5 12.4 11.6 His AED ROC ARQ NDO AZA AWE BPT TAP AOE 29...
Slide 30: Significant upside potential
Significant upside potential 180, 164 Beach has upside exposure to c.65mmboe of additional reserves in existing rir koe 101 projects/ developments 90 a aa Beach BMG Gas Cooper Oil Tipton Beach Reserves Project Project West Reserves upside potential 30...
Slide 31: What Sets Beach Apart?
What Sets Beach Apart? a Reserves Base » At top of mid caps « Stable mix of oil, gas & liquids «» Geographic spread — offshore & onshore a Long life production potential a Attitude » Commitment to reward shareholders (consistent record of TSR) « Commercially astute management ~— aggressive expansion
Slide 32: ach Petroleum | has prepared U :
ach Petroleum | has prepared U : : ae accu completeness F corectness of the information, opinions an agents oF part of any © Wi of ae Beach ore Ay offer or Invitation to subscribe fa ul Beach a awhile, ae Ippue Of ae Gccoment under the Corp: