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 AUDSmm Australian Oi! & Gas Mid Cap Companies by Mrk Cap* BPT AWE ROC AED AOE QGC AZA NXS ARQ HZN NDO TAP mmboe Australian Oil & Gas Mid Cap Reserves AWE, ROC AZA AED TAP ARQ NDC * February 2007
Slide 4: Company Attributes
Company Attributes High quality, balanced portfolio of assets with solid reserves base Strong, long term cash flow potential Reserves:Production ratio of ~ 10 years Proven value manager of assets Diversified portfolio ~ geographic & commadities: a Oil, gas, gas liquids, geothermal a Offshore & onsho
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 FY07
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 GLADS TOW
Slide 11: Sales & Revenue — 1H FY07
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 $214 million i
Slide 12: Strong Operating Profit
Strong Operating Profit Beach Delhi Total ($ million) ($ million) ($ million) Gross Revenue (ex 3" party) 38 149 187 Production Costs 14 76 90 Dep‘n & Amort. 7 40 47 Other Income/Expenses (2) 22 19 Hedging (5) 0 (5) ‘Transaction Costs (12) (25) (37) Profit Before Tax (2) 34 32 Tax 1 (43) (12) Profit
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 P]& 19mmb ~~ 80 mmboe » High 820P)& 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
Basker-Manta-Gummy Beach 50% Status at 1 March « Producing from Manta-2A, Basker 2,3 &5, Average rate in last week of Feb was 13,000 bopd. « Gas being injected into Basker-4 (~32 mmcf « Medium term target 15-20,000 bopd «» Annual OPEX ~$75 million ($37.5 . net from Beach) Ps ne “ Baskér South-(" « B
Slide 17: Basker-Manta-Gummy
Basker-Manta-Gummy Beach 50% Development Plans — Oil fa mani. (Groposed Weoi ania? « Upto 3 further Basker Wells addressing ~15mmb of undeveloped 2P reserves « Cost — up to $300 million a Drilling ..... Basker-6 Late 2007 (remainder mid 2008) 7 : “ee. . : | Baskdr Sonic ; » Online early 2008 Pep Sea
Slide 18: Basker-Manta-Gummy
Basker-Manta-Gummy Beach 50% Development Plans — Gas « Gas Sales Agreement with Alinta for Tasmanian power generation a 225 PJ over 15 years will underwrite gas development capex « Aiming for Project sanction 2°4 Quarter ‘07 - startup 2009 a Drill up to 3 wells in Manta & Gummy Fields in 2008 « Gas
Slide 19: Cooper-Eromanga Basins
Cooper-Eromanga Basins CB JVs Beach ~21% 19)
Slide 20: Cooper-Eromanga Basin: Highlights
Cooper-Eromanga Basin: Highlights 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-Eromanga Basin: Strong Profitability
Cooper-Eromanga Basin: Strong Profitability High Netback Oil Production a 0.9 mmb produced in 1H FY 07 (approx. 50% from Beach-operated and 50% from Santos-operated) AS/bbi Oil Price 60.00 75.00 90.00 Production 16.00 16.00 16.00 Costs Royalties 9.00 14.00 18.00 Netback 35.00 45.00 56.00 + Note: app
Slide 22: Cooper Oil Program (COP)
Cooper Oil Program (COP) a Development & Appraisal Program operated by STO in existing oil fields m Beach Equity ~25% (but 38.5% of Naccowlah Block) @ «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 m Low
Slide 23: COP Netback Sensitivity Analysis
COP NETBACK SENSITIVITY ANALYSIS COP economics are robust with prevailing oil prices Netback AUD/bbl AUD/bbI Oil Price | 60.00 75.00 90.00 (*usp46.80) | (*usD58.50) | (*USD70.20) Finding & 22.00 22.00 22.00 sof Development 25 Netback Production 10.00 10.00 10.00 (auD/bbty iB Costs 10. 5 Royalties 13
Slide 24: 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 commenced March 2007 » Cost $21 million (net) « Expected Reserves ~1 mmb (net) a Expected Initial Procuction 1,000 BOPD (net)) « Expected Value $15-25 millio
Slide 25: 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 25...
Slide 26: Tipton West Coal Seam Gas
Tipton West Coal Seam Gas Beach 40% @ Phase 1 Development ~ 82 wells Development Drilling Completed Gas Sales Commenced in February Target Rate 30 Ti/day @ Exploration Potential Taroom Coal Measures Dalby South Block Corehole Program ene 26...
Slide 27: High Reward Exploration
High Reward Exploration @ Carnarvon (BPT 10%) Hurricane-2, Q2 ‘07 Target 40-50 mmbbI oil potential = Offshore Otway Basin (BPT 50%) 3D Seismic Q1 ‘07 Hurricane-2|__ Target >1 TCF gas potential Drill FY 07 @ Production Testing Glenaire-1 (Onshore Otway) Champagne Creek (Surat) a Offshore New Zealand
Slide 28: Beach 10%
Beach 10% i iii Extent of Proven Gas (~ 30 bef}
Slide 29: Offshore Otway Basin - Gas
Offshore Otway Basin - Gas Beach 50% a Target size: © ———_______», approx. 1 TCF gas Approx. same scale NN oe iM 29...
Slide 30: Offshore NZ: Large Gas Liquids Potential
Offshore NZ: Large Gas Liquids Potential a Lightly explored a Sub-commercial gas/condensate discovery (Galleon-1) a Significant upside potential 2 Barque Prospect potential for 6 TCF of gas + 500 million barrels of condensate 30...
Slide 31: 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 32: Outlook
BEACH ao PETROLEUM, Beach Petroleum Limited ih iia Outlook | March 2007
Slide 33: Production
Production Cooper Oil Program expected to build oil production significantly from 2008-2010 Beach-operated Cooper oil expected to continue to produce at ~ Immbbl p.a. or better over the next 3-5 years - with good likelihood of continued reserves replacement # BMG oil production ~15,000-20,000 bopd (
Slide 34: Exploration
Exploration Good medium to long term potential for low risk exploration in Cooper region Potential discoveries at Glenaire (onshore Otway) and Champagne Creek (Surat) Offshore Carnarvon Hurricane play could have significant follow-up potential Large gas prospects offshore from Portland, Victoria Lar
Slide 35: Value per boe
Value per boe Beach trades in the bottom third of its peers on $/boe ... Value per BOE 53.6 36.9 3 31.5 31.3 B 80° 25.4 2 20.5 70" 124 411.6 ‘sl Ei AED ROC ARQ NDO AZA AWE BPT TAP AOE 35...
Slide 36: 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 36...
Slide 37: Significant Coal Seam Gas Potential
Significant Coal Seam Gas Potential m Post shelving of PNG gas project, there is strong focus on companies with coal seam gas (CSG) assets m Focus has been mainly on pure CSG companies (QGC, Arrow, etc) m Beach's 40% interest in Tipton West and surrounding licences has yet to receive full recognitio
Slide 38: 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 «» Long life production potential (10 years reserves:production ratio) a Attitude » Commitment to reward shareholders (consistent record of TSR) « Commercially ast
Slide 39: Important Notice & Disclaimer
Important Notice & Disclaimer 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: