Beach Energy Limited · ASX:BPT
Beach Energy — Investor Presentation (April 2010)
19 slides from Beach Energy's investor presentation, Apr 19, 2010
Slide 1: Cooper Basin Shale Gas
Beach Energy Limited For personal use only Cooper Basin Shale Gas Excellence in Oil and Gas Sydney, 19 April 2010 Neil Gibbins General Manager – Exploration and Development 1
Slide 2: Compliance statements
Compliance statements For personal use only Disclaimer • This presentation contains forward looking statements that are subject to risk factors associated with oil, gas, geothermal and related businesses. It is believed that the expectations reflected in these statements are reasonable but they may
Slide 3: Today's presentation
Today’s presentation For personal use only Cooper Basin shale gas: • Technical attributes • Resource potential • What’s happened in the US • Why Beach is positioned for success 3
Slide 4: Beach Energy Limited: A compelling value proposition
Beach Energy Limited (ASX : BPT): A compelling value proposition For personal use only • 2P reserves of 66 MMboe Strong base • Sustainable long-term oil and gas production business • FY 2010 production guidance of 7.8 MMboe • $118 million cash and zero debt* • Huge Cooper Basin shale gas resource po
Slide 5: The 'base business': Cooper Basin production, development & exploration
The ‘base business’: Cooper Basin production, development & exploration For personal use only • Cooper Basin is a key supplier of onshore oil and gas to eastern Australian markets: – Diversified asset, product and market mix • Beach participates in approximately 300 exploration and production licens
Slide 6: Expanding the base business: Positioning for long-term Australian gas supply
Expanding the base business: Positioning for long-term Australian gas supply For personal use only • Beach is seeking to grow its base gas business in eastern Australian markets from the Cooper Basin • Good long-term growth opportunities for eastern Australian gas resources: – Strong projected domes
Slide 7: Cooper Basin: Significant shale gas potential
Cooper Basin: Significant shale gas potential For personal use only • Early identification of Cooper Basin shale gas potential • Captured prospective acreage with high equity participation • Huge resource potential: – Comparable to combined NSW and Queensland coal seam gas volume • Access to multipl
Slide 8: Nappamerri Trough: Potential gas in place greater than Tcf
Nappamerri Trough: Potential gas in place greater than 200 Tcf For personal use only Over pressured zone • Extensive and thick shale packages • Similar properties to the best US shale plays • Nappamerri Trough total area ~ 10,000 km2 • Potential gas in place 20 – 100 Bcf/km2 • Beach has high equity
Slide 9: Why the Nappamerri Trough?
Why the Nappamerri Trough? For personal use only Geological properties Thick shale sequence 150m thick over 10,000 km2 Organically rich 5% Total Organic Carbon (TOC) Gas prone Proven Thermally mature Proven Overpressure Proven Tight gas sands Potential upside Mechanical properties Suitability for fr
Slide 10: Nappamerri Trough: Thick Early Permian shale sequence
Nappamerri Trough: Thick Early Permian shale sequence For personal use only Resistivity Sonic 50-70m Roseneath Shale 90-140m Epsilon Formation 70-80m Murteree Shale Patchawarra 10
Slide 11: Roseneath - Epsilon - Murteree (REM) package: Extensive and thick deposition
Roseneath - Epsilon - Murteree (REM) package: Extensive and thick deposition For personal use only • Thickest section is PEL 218: REM Thickness located in the centre of the trough where Beach has high equity interests • Well control on flanks and highs of the trough • Measured over-pressure and temp
Slide 12: Nappamerri Trough: Geographical context vs US basins
Nappamerri Trough: Geographical context vs US basins For personal use only Cooper Basin Nappamerri Trough 12
Slide 13: Nappamerri Trough shales compare favorably with US shale gas plays
Nappamerri Trough shales compare favorably with US shale gas plays For personal use only Parameter Barnett (TX) Fayetteville Marcellus- Haynesville, Cooper Basin (AR) Appalachian LA Nappamerri (NE USA) Trough Depth (ft) 5400 - 9600’ 1200 - 7500’ 1500 - 8000’ 10000 - 13000’ 9500 - 11500’ Thickness (f
Slide 14: The initial test: Holdfast-1 exploration well
The initial test: Holdfast-1 exploration well For personal use only • Well spud planned for July 2010 • Vertical exploration well • Gas in place (GIP) measurement a key objective: – Extensive coring – Evaluate gas content of shale – Determine porosity and free gas • Results will assist in the design
Slide 15: Indicative shale gas development timeline
Cooper Basin shale gas: Indicative shale gas development timeline For personal use only Pilot BOOK FIRST GAS Holdfast-1 production Pilot SALES Design pilot BOOK GAS GAS vertical well development production RESOURCE RESERVE exploration well Q2 well Drill Q2 2011 Q4 2010/ Frac Q4 2011 Commence Q3 2010
Slide 16: Multiple long-term shale gas market options
Multiple long-term shale gas market options For personal use only • Good prospects to increase Existing Cooper Basin supply over time customers – extension contracts • New domestic gas supply Existing opportunities include: customers – Export LNG incremental – Power generation contracts – Feedstock
Slide 17: When will Cooper Basin shale gas value recognition occur?
When will Cooper Basin shale gas value recognition occur? For personal use only Some recent US shale gas transactions Deal Location Date Acres Value Mitsui - Anadarko Marcellus Feb 10 100,000 US$1.4b Total - Chesapeake Barnett Jan 10 270,000 US$2.25b ExxonMobil – XTO Various basins Dec 09 Included 1
Slide 18: Positioned to become a leading Australian shale gas producer
Positioned to become a leading Australian shale gas producer For personal use only • Australian shale gas is an emerging ‘game changing’ opportunity - and Beach is at the forefront of its development • Nappamerri Trough is highly prospective with enormous resource potential: – 200 Tcf gas in place r
Slide 19: Cooper Basin Shale Gas
Beach Energy Limited For personal use only Cooper Basin Shale Gas Excellence in Oil and Gas Sydney, 19 April 2010 Neil Gibbins General Manager – Exploration and Development 19