Beach Energy Limited · ASX:BPT
Beach Energy — Beach Petroleum — Investor Presentation (March 2006)
30 slides from Beach Energy's investor presentation, Mar 1, 2006
Slide 1: Beach Petroleum Limited Investors Presentation March 2006
Beach Petroleum Limited Investors Presentation March 2006
Slide 2: Status of the Company
€ BEACH PETROLEIM Status of the Company ASX 300 petroleum E&P company — ASX 200 in contention Quality Board and management * broad financial expertise, public company administration, strong operational background in oil & gas industry, management of large projects and Corporations Law Issued capital
Slide 3: Market Capitalisation
€ BEACH Market Capitalisation PETROLEIM 700 @ Aug '05 Capital Raising — $ 77 million @ Dec ‘03 Capital Raising - $ 32 rvillion 600+ Dec ‘01 Capital Raising — $15 million @ Base
Slide 4: Cumulative Dividend Yield, Share Price and Option Value
7 oe: eee ae — Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jum- Deec-~ Jun- Dec- Jun- Dec- Jun- Mar- 98 99 $9 CO 600) (Ot SCO 2 2 Bh Cumulative Dividend Yield «Share Price + Option Value NB: (1) Scales are different; (2) Option value is calculated on market value divided by 4, as options were issued on a one
Slide 5: Five Year Financial Performance
Five Year Financial Performance 80, 70; 60, 50; A$ million f@ Revenue EBIT EPS 1H01 1H02. 1HO03 1HO04 1HO05 # 1H06 Half Year € BEACH PETROLEIM
Slide 6: Performance to June 2005: Reserves & Production
Performance to June 2005: Reserves & Production Annual Production Millions of barrels of oil 6.5 2001 2002 2003 ‘2004 2005 Financial Year 30 June Tipton West Gippsland Otway South Australia @ Queensland € BEACH PETROLEIM 3 2! Millions of 2 Barrels Oil 4 Equivalent , 2001 2002 2003 2004 2008 Jan‘t6 F
Slide 7: Performance: Drilling
Performance: Drilling 2000/01 2001/02 2002/03 2003/04 2004/05 [J Unsuccessful li Success-Gas [i Success-Oil € BEACH PETROLEIM
Slide 8: Low Cost Structure Maintained
Low Cost Structure Maintained Netback Based on OF Price of ASBO per Barrel Offshore BMG Fiel ‘elds (for 2P reserves) OPEX (A$/bbl) $12.00 Transport (A$/bbl) Royalty (A$/bbl) RRT of 40% after cost recovery Total Costs (AS/bbl) $12.00 € BEACH PETROLEIM
Slide 9: Highlights to date FY 2005-06
FY 2005-06 Highlights to date
Slide 10: Highlights 1H06
€ BEACH Highlights 1H06 e Oil production from Cooper-Eromanga of 591,000 barrels (pcp 478,000 barrels) e Highest ever quarterly production in Q2 of 342,000 barrels e New Kiana-1 Cooper oil discovery (BPT 40%) e Commitment to Tipton West Coal Seam Gas Project farmin (BPT 40%) Move to 50% of BMG Proje
Slide 11: Net Profit After Tax
Net Profit After Tax 25, 20; J Full Year 155 AS million 4 Half Year '06 (sales) ad Half Year '06 (AZA sale) PETROLEIM € BEACH
Slide 12: Highlights to date for 2H06
Highlights to date for 2H06 PETROLE! Maiden oil sales (121,000 barrels BPT share) from Basker-2 EPT Next tanker sales delivery scheduled for mid March Manta-2A well confirms new oil field with successful flow of 6400 bopd New 12 well program announced for Kenmore area Udacha-1 Cooper gas discovery (
Slide 13: Comparison with Full FY 03/04 & 04/05
Comparison with Full FY 03/04 & 04/05 PETROLEIM € BEACH
Slide 14: Reserves Additions to Jan '06
Reserves Additions to Jan ‘06 I 28.1 mmboe of Proved plus Probable Reserves at 1 Jan ‘06 BH Tipton West CSG © Gippsland Reserves Upgrade @ Gippsland Acquisition 3 (12.5%) i Gippsland Acquisition 2 (12.5%) @ Gippsland Acquisition (25%) @ Exploration & Appraisal @ Bodalla Acquisition Base at June 01 O
Slide 15: New Cooper Oil & Gas Discoveries
New Cooper Oil & Gas Discoveries e Kiana-1 (Beach 40%) e Udacha-1 (Beach 15%) & PETROLEIM € BEACH Flowed 1100 bopd 58° API « Flowed 0.44 mcfd gas from oil on test 3m net sand pay zone Completed as new oil » Further potential net sand producer pay of 3-10m from deeper In Feb 06 was producing zones fr
Slide 16: ATP633P awarded in southwest Queensland
€ BEACH PETROLEIM ATP633P awarded in southwest Queensland Eight year delay through Native Title issues Significant cooperative relationship established with Wangkamurra peopie Numerous prospects include Gidgee near the Munro Oil Field (Santos & others): « Gidgee-1 tested 1028 bopd but was abandoned
Slide 17: Basker-Manta-Gummy Project
€ BEACH Basker-Manta-Gummy Project PETROLEIM oe , ) BMG Project (BPT 50%) Oil Reserves .. 30.1 mmb (Proved and Probabie) 2P Gas Contingent Gas Resource -- 94 BCF Two wells drilled and completed as producers Maiden oil sales Jan 2006 Full Field Production due to commence in mid 2006
Slide 18: Ownership of BMG Project
Ownership of BMG Project € BEACH PETROLEIM
Slide 19: Cost of Acquisition for Beach
Cost of Acquisition for Beach e Based upon 2P reserves of 30.1 mmbbl @ 15.05 mmbbl net to BPT @ A$53 million premium paid implies A$3.52/bbl US$2.64/bbl) for undeveloped reserves e AtA$140 million for BPT’s share of development costs implies A$12.82/bbl (US$9.62/bbl) for developed reserves e Backing
Slide 20: PETROLEIM
PETROLEIM € BEACH
Slide 21: Annual Production
Annual Production Target 1.55 Million boe 2000/01 2001/02 2002/03 2003/04 2004/08 Target Target Financial Years € BEACH PETROLEIM
Slide 22: 2005/06 Drilling -- oil and gas wells
2005/06 Drilling -- 29 oil and gas wells ... plus extensive CSG drilling SEL HE Peterberoughd 19% PEF ABS ee BBL 0a OG1 Childers Covet 49% BER 158. aoa PEL AOT eet Gowrie a0% PeLer ms MELO? Glenairet enn, PEP 480 gem PEL OS aus BEL ADE: ee APL Ene res @PL2O8 Banker 2 We Wome yea PELOZ Warts 2I2K OH,
Slide 23: Cooper-Eromanga Flanks
Cooper-Eromanga Flanks € BEACH PETROLEIM
Slide 24: Cooper West: Numerous Targets
Cooper West: Numerous Targets ‘West of Christies’ oil trend play LOCATION MAP. se otatpere “pERMOE | COOPER BASIN € BEACH PETROLEIM
Slide 25: Target size
Target size: approx. 1 TCF gas € BEACH PETROLEIM Approx. same scale
Slide 26: Hurricane-2: Oil Potential
Hurricane-2: Oil Potential Beach 10% PETROLEIM € BEACH
Slide 27: Tipton West: Coal Seam Gas
Tipton West: Coal Seam Gas 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. « Beach funding Stage One development ($35 million — 90 wells plus infrastruct
Slide 28: New Zealand Prospects
New Zealand Prospects Lightly explored Sub-commercial gas/condensate discovery (Galleon-1) e Significant upside potential « Cutter Prospect 80 million barrel oil potential e Barque Prospect potential for 6 TCF of gas + 500 million barrels of condensate e Beach farming in with Tap, AWE, etc to earn 2
Slide 29: Strength for Growth
€ BEACH Strength for Growth PETROLEIM * Strong oil reserves Base * Increasing oil Production «Increasing gas reserves potential * Active diversified exploration program * Proven performance * Quality management
Slide 30: 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 statements are reasonable but they may be affected by a variety of variables and changes in underlying