Beach Energy Limited · ASX:BPT
Beach Energy — Beach Petroleum — Shareholder Meeting (November 2002)
30 slides from Beach Energy's shareholder meeting presentation, Nov 21, 2002
Slide 1: Beach Petroleum Annual General Meeting
Beach Petroleum Annual General Meeting 21 Novernber 2002
Slide 2: A successful Australian explorer
Beach Petroleum ~a successful Australian explorer LL EES TI SELLICM S| SUEY 20te FLOW RATE OF 2200 BARRELS PER OAY Thank you, Mr Chairman. Ladies and gentlemen: This photograph of our successful discovery of oil at Sellicks-1 says it all. Beach is now a successful Australian explorer. Not just succe
Slide 3: Investment highlights
Beach Petroleum SLL IIE IEEE EE IEEE. 1. Solid production revenue ~ a self-funding explorer 2, Premium regions ~ strang equity 3. Drilling success - many attractive follow up targ 4, Profitable operations ~ dividend announced &. Praduction growth unique market position Beach now has solid revenue fr
Slide 4: Model for Sustainable Growth
Model for Sustainable Growth Success + Opportunities “Low dabt “Bodalta operations “Growing olf & gas pravide profitable 208 cashflow fo support torian gas on exploration with bigh i ner drilling has OS a9 over a wide aly fo geagraphic area v7 exploration rect for sure 2063 frong danuary This singul
Slide 5: Financial health
Financial health: + Low debt + Solid revenue growth + OF & gas prices considered likely to remain strong Beach is financially sound.
Slide 6: Profitable operations with cashflow and strong balance sheet
Profitable operations with cashflow and Main cantribution was strang balance sheet: ins 4Q From increased Sales Revenue $15.9 NEAT $ 2.9m? Cashfiow from operations $ 4.201 Net ci $47.6 Debt $ 1.2m* Cash at hast $40. er For the financial year ended 30 June 2002, results continued to trend firmer. Our
Slide 7: Increase in production and revenue
; {ion facrease in produc mber 2002 ‘ le discovery IN RU eee co T aonel # New Bodalle driling will add Ub °° i ember 2002 oo ane oe we anne for January L© June 20 New GH 2004-02 1 2002-03 Production (parrela) 50,640 207, 463 Sales (barrels) 47 600 212,879 Revenue $2.32 million $7.72 million We expec
Slide 8: Average Daily Production Rate
Average Daily Production Rate actual + forecast in Sept 2002 LLL LTE I SII II Harrels of oll equivalent per day 98/99 99/00 00/01 O41/02 02/03 Financial Years This graph shows actual daily production rates from 1998-99 to the present. You will note the contribution that is starting to be made by our
Slide 9: Oils Ain't Oils
Oils Ain’t Oils Offshore: ; NPV AU$3 _sr™ to AUSS = per barrel Onshore: NPV of up to AU$15 to AU$20 per ®barrel Why is our focus mostly onshore at this stage? Forgive the expression, but “Oils ain’t oils.” A barrel of oil discovered onshore is worth much more— in a net present value (or NPV) sense -
Slide 10: Australia's Declining Self-Sufficiency in Petroleum
| Australia’s: Declining Self- Sufficiency.in Petroleum And we do not foresee that demand will fall. Far from it. This graph, prepared from data released by Commonwealth Government agencies shows that over the next few years, Australia will have to rely more and more on foreign imports of oil, unles
Slide 11: Oil prices and US oil stocks
Oil prices and US oil stocks OH PRICE vs US OL STOCKS WITH Price 4990-prasenk fee /bareh a ete 3 elce SMe 328 See) Sale a5 US coi Staak (willie barney Despite the volatility and uncertainty in oil prices arising from fears of war in the Middle East, there are some plain economic fundamentals of supp
Slide 12: Otway Basin gas and proposed pipeline to Adelaide
+ 2004.02 discoveries near Warrnambool now on stream + Beach's share 2 ~ 4 mmefd Proposed gas pipeline to Adelaide -Heach has largest net acreage in SA Otway + Proposed TXU Pipeline from offshore Victoria to 4defaide will pass through most of Beach’s acreage Our aim is also to increase Beach’s level
Slide 13: Strong presence in Cooper/Eromanga
Strong presence in Cooper/Eromanga: + Acquisition of 100% of Bodalla has provided Beach with a substantial competitive advantage The move to full ownership of the Bodalla Block oilfields was undoubtedly a huge step forward for Beach. 13
Slide 14: Cooper/Eromanga Oil Production: Bodalla acquisition
Cooper/Eromanga Oil Production Bodalla oiffields in SW Queensland Hock Oi Flelds from ache for TO0% ownership Purchased 88% of Boca OCA and Santos, taking Bodalla Block » £8 mmb ail and 4 PL gas for $16.5 milion * Acquisition Cast ~AS 4.701 bae (USS 2.60 | bee, As from | July 2002, Beach held 100% o
Slide 15: Bodalla Oilfields
Bodalla Oilfields SLL LLL LLL LLL, » Beach now 100% + Remaining Raserves ~ 2.7 mmix » Since acquisition + Reserves up by 10% + Coste down by 17% * Further Development Potential + 2 successtil waits Oct-Nov 2002 ° 30 Seismic completed Nav 2602 ae » Production to rise from 1400 barrels per day in Naw
Slide 16: Successful drilling 2001-2002
Successful drilling 2001-2002: + New commercial discoveries + Five new wells in production by December 2002 We have been able to use this new found expertise to great advantage in developing new discoveries such as Sellicks-1. 16
Slide 17: Nine wells drilled in 2002
Mine well progerant in 2002 + lf indications in aif wells + Seven wells completed for de commercial production + Three new field discoveries This year heralded one of Beach’s most aggressive drilling campaigns yet. It encompassed a large geographical area — note the distances involved. We participat
Slide 18: Acrasia Field
5%) LLL LLIB Acrasia Field discovered in April 2002 ° Production commenced in dtahy ° Olin Place 2.7 menb (up fo ~1.8 mmb recoverable} + Acrasia-3 drilled Nov 2002 “Beach entitled fo 50% of Acrasiat and —~3 production unl its well costs recovered The Acrasia discoveries were made in April 2002 by th
Slide 19: Sellicks discovery July 2002
Discovered in July 2002 « Highest ever olf Hove fram Patchawarra Formation (2,200 barrels per day * Onened up new olf fairway gowestern Hank of basin Over 100 km to the west, Beach and its farmin partner, Cooper Energy, discovered oil in July 2002 at Sellicks-1. A flow at the rate of 2200 barrels of
Slide 20: Sellicks Production Facility
Sellicks Production Facility SLL LLL ELE + Initial extended production fow test produced 586 barrels over TT hours > Sellicks anticipated to start production at ~ $00 barrels day Nov 2002, Hsing to 1000 barrels per day by Jan 2003 » Up to 3.6 million barrels in place (1.5 million recoverable} per Se
Slide 21: Maslins-1 oil recovery upgrades PEL 92
Ol recovery on test in Mastins-¢ well has strongly upgraded potential of PEL 92 Our view of the Maslins-I drilling result is very positive. The reservoir conditions at the drilling location proved to be problematic. But please let me reassure you that the oil recovery that we made during tests delig
Slide 22: Aldinga discovery
=L 95 (Beach 50%) « Aldinga discovery August 2002 « Production late 2002 « Shatiow «low development costs « Up te 2.4 million bbls oil in place (~ 500,000 bbls rec.) « Probable new olf fairway with significant follow-up potentia? Beach achieved further success with its next well, Aldinga-1, in Augus
Slide 23: Henley-1 oil recovery from fractured basement
+ Henley t off recovery from fractured basement rocks + Strong possibility of off trapped along Hanks of structure Henley-1 spudded in September 2002. It too recovered oil— this time from fractured basement rocks, indicating that oil may be trapped along the flanks of the Henley structure. We are pr
Slide 24: 2002 Program
2002 Program > Confirmed Seach’s view of prospectivity of southern and western margins of Cooper Basin NEY of AS#S-20 9 Allin all, Beach’s drilling efforts in the Cooper/Eromanga this year have been highly successful. Our long-held view of the prospectivity of the western and southern flanks of the
Slide 25: New opportunities
New opportuniti " Wide geographic areas opened in CooperiEramanga " Numerous targets for follow-up drifling » Six well exploration drilling programme during Jan 2003 ta June 2003 Importantly, for future growth, the programme has opened the way for more discoveries. We’ll move to this new phase in ea
Slide 26: Greatly Enhanced Prospectivity
Greatly Enhanced Prospectivity SLL LLL LTE New off fairway on western Hank Oi generation now proven alor: SOURRERRANARMRRs g southern flank | These will target the new oil fairways that we believe lie along the western and southern basin flanks. 26
Slide 27: Western Cooper Prospectivity
Western Cooper Prospectivity SLL LLL, + Sellicks is a very important new field find in the western Cooper « Highly significant new discovery trend « There are already numerous follow up targets The numerous follow-up targets in the vicinity of Sellicks are shown in this slide in yellow. Moana and Br
Slide 28: Southern Cooper Prospectivity
Southern Cooper Prospectivity Similarly, there is a wealth of prospects and leads in the Maslins/Aldinga/Henley region. For example, Waitpinga and Chiton are listed for drilling in the forthcoming programme. 28
Slide 29: New Exploration Drilling
New Exploration Drilling SLLLLELLLLLLLL LLL LLL LLL, * Carrickalinga-1 (PEL 91) Beach 40-50% * Brighton-1 (PEL 92) Beach 75% * Wailtpinga-1 (PEL 94) Beach 50% + Chiton-1 (PEL 95) Beach 50% * Moana-1 (PEL107) Beach 40-50% * Semaphore-1 (PEL 110) Beach 37.5% And here is a summary of the prospects prop
Slide 30: Conclusion
Conclusion Profitable Oi and Gas Production Production Growth & Low Debt = Me S oO aa a = pes i Ga @. oe mei $ om & pan oa peel Beach has undergone a transformation during this year. It has grown and developed on a number of different fronts — drilling and seismic operations, assuming control of pro
Beach Petroleum — Shareholder Meeting (November 2002) on 6ix