Beach Energy Limited · ASX:BPT
Beach Energy — Beach Petroleum — Shareholder Meeting (November 2005)
30 slides from Beach Energy's shareholder meeting presentation, Nov 17, 2005
Slide 1: Beach Petroleum Limited Annual General Meeting
Beach Petroleum Limited Annual Genera: Meeing 17 November 2005
Slide 2: y UY
y UY
Slide 3: Mr R M Kennedy, Chairman
Mr R M Kennedy Chairman
Slide 4: Forbes Asia Best Under A Billion accolade
BEACH'S PERFORMANCE OVER THE PAST 5 YEARS HAS RECEIVED AN IMPRESSIVE ACCOLADE. LAST THURSDAY EVENING, AT AN AWARD CEREMONY IN SINGAPORE, BEACH WAS NAMED ONE OF FORBES ASIA’S 200 COMPANIES THROUGHOUT THE ASIAN- AUSTRALASIAN REGION REGARDED AS “BEST UNDER A BILLION” (THAT IS THOSE WITH MARKET CAPITALI
Slide 5: BPT share price performance
—BPT Shara Price ASX 300 Energy — i (Spat} THIS GROWTH - AS IS CLEAR FROM THIS GRAPH —- WAS DUE TO MORE THAN JUST INCREASED WORLD OIL PRICES. BEACH OUTPERFORMED BOTH THE ASX300 ENERGY INDEX AND THE OIL PRICE IN FINANCIAL YEAR 2004-05. THE GRAPH FINISHES AT THE END OF JUNE 2005. IT'S WORTH NOTING THA
Slide 6: Market capitalisation growth
pitalisa sa 08 Capa wD 03 Capi MUCH OF THIS GROWTH HAS BEEN FROM NEW DISCOVERIES THROUGH OUR TEAM'S EXPLORATION EFFORTS. BUT WE HAVE ALSO BOUGHT QUALITY ASSETS, ASSISTED BY SHAREHOLDER'S SUPPORT AND ENDORSEMENT OF CAPITAL RAISINGS OVER THE LAST 5 YEARS. AGAIN, THROUGH THE EFFORTS OF OUR VERY CAPABLE
Slide 7: Yield plus capital growth
ee, Es Yield + Capital Growth THIS DIAGRAM REINFORCES THE STORY OF GROWTH. WE HAVE DELIVERED YIELD PLUS CAPITAL GROWTH OVER THE PERIOD. WE'VE JUST PAID BEACH'S EIGHTH SUCCESSIVE DIVIDEND. THE UNDERLYING MARKET PRICE PER SHARE HAS GROWN STRONGLY. AND —- TO GIVE SHAREHOLDERS A BETTER EQUITY EXPOSURE T
Slide 8: Performance: Financial
Per Form Q ce: Finar cial _ ee se URE Seo ae Bornligs botore lisioat & Tex (RBI) Nol Prof Affe Tax (NPAT) Sle pak age Sn ad aa Aah Sak ak ate AGAIN, THIS SLIDE SHOWS THE FACTS - THE UNDERLYING STRONG AND CONSISTENT FINANCIAL PERFORMANCE OVER THE LAST 5 YEARS THAT HAS DELIVERED VALUE TO SHAREHOLDERS
Slide 9: Performance: Reserves & Production
Performance: Reserves & Production Mis wy es Cie IN THE FINANCIAL YEAR 2004-05, BEACH ACHIEVED ITS FIFTH SUCCESSIVE INCREASE IN PRODUCTION AND A NEW MILESTONE: OVER A MILLION BARRELS FOR THE YEAR. THIS IS SHOWN IN THE TOP LEFT HAND GRAPH, WHERE YOU CAN ALSO SEE THE INCREASING CONTRIBUTIONS FROM OUR
Slide 10: Drilling success rate
P Psy a 43% commercial success rate 7) i Be nsctesstil”. SuccessGas | Success WE HAVE INDEED BEEN FINDING MORE THAN WE HAVE PRODUCED. THAT'S A VERY HEALTHY AND DESIRABLE POSITION. A SUBSTANTIAL PART OF THIS GROWTH IN RESERVES HAS RESULTED FROM NEW EXPLORATION DISCOVERIES. WE HAVE A GREAT EXPLORATION
Slide 11: Low cost operator and netback
Sir eas {for 2? reserves} $12.00 RRT of 40%, afer cost recovery $12.00 $62.60 until costs recovered: $40.80 alter cost recovery Nelback (AS/Gbl) | WANT TO ACKNOWLEDGE THE GREAT TEAM OF PEOPLE BEACH HAS IN ITS PETROLEUM DEVELOPMENT AND PRODUCTION ENGINEERING DIVISION, HEADED VERY CAPABLY BY GORDON MO
Slide 12: Financial Highlights FY
Financial Highlights FY 05 DE ee IN SUMMARY, THE FINANCIAL YEAR IN REVIEW SAW BEACH DELIVER *RECORD SALES AND RECORD PRODUCTION, *A NET PROFIT AFTER TAX UP BY 105% TO $20.4 MILLION THAT HAS ALLOWED THE CONTINUED PAYMENT OF DIVIDENDS *BONUS OPTIONS THAT ARE WELL IN THE MONEY. | NOTE ONCE MORE THAT TH
Slide 13: Mr R G Nelson, Managing Director
Mr R G Nelson Managing Director THANK YOU, LADIES AND GENTLEMEN. WILL NOW HAND OVER TO MR REG NELSON, OUR MANAGING DIRECTOR, WHO WILL TAKE YOU THROUGH THE VERY EXCITING ARRAY OF PROJECTS THAT WE HAVE IN STORE FOR THIS YEAR. 13
Slide 14: Growth in 2P reserves
bi z Bis © Gippsiand Acquisition (12.5%) © Gippstand Acquisition (25%) O Exploration anc Appraisal @ Bodaila Acquisition @ Base at June 64 THANK YOU MR KENNEDY., LADIES AND GENTLEMEN, BEFORE | REVIEW WHAT PROMISES TO BE A VERY STIMULATING PROGRAM FOR THE YEAR AHEAD, |’LL REVISIT THE IMPRESSIVE GROWT
Slide 15: 2P reserves at June 2005 and since
ves a AT 30 JUNE 2005 WE WERE ABLE TO BOOK 10.8 MILLION BARRELS OF 2P OIL RESERVES, HSELF A 253% INCREASE OVER THE PREVIOUS YEAR. SINCE THEN, WE HAVE ADDED A FURTHER 2.9 MILLION BARRELS OF 2P OIL RESERVES THROUGH THE ACQUISITION OF A FURTHER 12.5% OF THE BASKER-MANTA-GUMMY {OR BMG) PROJECT IN THE OF
Slide 16: Diversity of exploration and production interests
WE HAVE MAINTAINED AND, IN FACT, INCREASED THE DIVERSITY OF BEACH'S PORTFOLIO OF EXPLORATION AND PRODUCTION INTERESTS. RECENT ADDITIONS INCLUDE A COAL SEAM GAS PROJECT AT TIPTON WEST IN SOUTHEAST QUEENSLAND THAT IS CLOSE TO COMMERCIALISATION AND A STRONG NEW EXPLORATION PROJECT IN THE CANTERBURY BAS
Slide 17: New Oil Discovery Heralds 2005-06
New Oil Discovery Heralds 2005-06 WE BEGAN THE NEW FINANCIAL YEAR WITH SUCCESS — WITH 2 DISCOVERIES FROM 4 WELLS DRILLED. THIS SLIDE SHOWS KIANA-1 — A NEW OIL DISCOVERY WEST OF MOOMBA IN SOUTH AUSTRALIA. KIANA-] WAS DRILLED IN SEPTEMBER 2005 AND FLOWED 1100 BARRELS OF LIGHT SWEET CRUDE OIL ON TEST.
Slide 18: BMG Project
Project ae BMG Project ‘Olt Reserves: @ 40.4 mmb (Proved) 523-4 mmb{Proved:and Probable): 2P:Gas Contingent Gas Resource =. 84.BCF: Beach: 376%. (8:7 tanh © AS13,00/bbl tor 2P Developed Raserver) Full Field Production due to-commence in: mid 2006: THE HIGHLIGHT OF THE PRESENT YEAR HAS BEEN THE DRILL
Slide 19: Ownership of BMG Project
Ownership of BMG Pro ie Bee is IN ADDITION TO HTS DIRECT INTEREST IN THE HOLDING, BEACH ALSO HOLDS AN INTEREST OF APPROXIMATELY 9% IN ANZON AUSTRALIA, WHICH PRESENTLY HOLDS THE REMAINING 62.5% INTEREST IN THE PROJECT. OVER THE LAST TWO MONTHS, ANZON AUSTRALIA SHARES HAVE TRADED BETWEEN $1.00 AND $1.
Slide 20: BMG Project development layout
oject OG Basher Welttioad Mauiifotd THE BASKER AND MANTA FIELDS ARE SHOWN IN THIS SLIDE IN GREEN, WITH THE PROPOSED WELL LOCATIONS INDICATED. THE “CRYSTAL OCEAN” PRODUCTION VESSEL IS MOORED IN A CENTRAL LOCATION. THE PRODUCTION WELLS AND A GAS INJECTION WELL WILL BE CONNECTED FROM THE SEA FLOOR 155
Slide 21: BMG Project: Oil Production
BMG Project: Oil Production MANNE AAPA SERIES fei THIS SLIDE INDICATES BEACH'S SHARE ~ AT 37.5% - OF TARGETED OIL PRODUCTION. BASED ON OPERATOR’S ESTIMATES, BEACH'S SHARE OF TARGETED PRODUCTION | THE PRESENT FINANCIAL YEAR IS ESTIMATED AT APPROXIMATELY 500,000 BARRELS (PROVED PLUS PROBABLE}. AFTER F
Slide 22: Annual Production
Pe Annual Production OUR ENTRY INTO THE BMG PROJECT HAS ALLOWED US TO SET SOME SUBSTANTIALLY HIGHER TARGETS FOR BEACH'S OVERALL PRODUCTION OVER THE NEXT FEW YEARS. AS THIS SLIDE SHOWS, SUCCESSFUL DEVELOPMENT OF THE THE BASKER AND MANTA FIELDS, COUPLED WITH ANTICIPATED STABLE PRODUCTION FROM OUR COOP
Slide 23: Drilling program for current financial year
eon Lol le] Lee Tai fi st sat EROMANSA, arceryas | eee yrEs |e | ee Perse PEL TIO ro 255 PRL 20s en on PEL 07 pe 405 PEL AO? wn PEL 108 PEP G8 PEP ica PEP 16y 8 PEL 08 Tank Hurvennez TON prem ren PPL 208 ren PPL 208 ren PEL az ren PEL eZ res PEL OZ ren PEL SZ desee PPL 208 ee o788 WIC 3788 VCR ie TH
Slide 24: Cooper-Eromanga Flanks
Cooper-Eromanga Flanks AS YOU MAY HAVE NOTED FROM THE DRILLING SCHEDULE, WE HAVE A VERY ACTIVE PROGRAM IN THE COOPER-EROMANGA REGION, WITH *10 MORE WELLS PLANNED ON THE PROSPECTIVE PATCHAWARRA WEST FLANK IN SOUTH AUSTRALIA; AND *A STRONG PROGRAM OF 2D AND 3D SEISMIC TO IDENTIFY NEW TARGETS ALONG THE
Slide 25: Cooper West: Numerous Targets
Cooper West: Numerous Targets Wis “West of Christies’ oll trend play FLOODING FROM THE COOPER CREEK WEST OF OUR SELLICKS AND CHRISTIES FIELDS ON THE PATCHAWARRA WEST FLANK HAS LIMITED ACCESS TO THIS AREA FOR 18 MONTHS OR SO. THIS HAS BEEN VERY FRUSTRATING, GIVEN THE PROVEN SUCCESSES AT CHRISTIES AND
Slide 26: Otway Basin prospects
NOW WE TURN OUR ATTEBTION TO THE SOUTHERN MARGINS OF AUSTRALIA AGAIN — THIS TIME TO THE OTWAY BASIN OF SOUTH AUSTRALIA AND VICTORIA. WE ARE PRESENTLY DRILLING COWRIE-] IN THE SOUTHEAST OF SOUTH AUSTRALIA TO TEST A PROSPECT FOR ITS OIL POTENTIAL ~ WITH A HIGHSIDE POTENTIAL, IF OIL IS PRESENT, OF 3TO
Slide 27: Hurricane-2
Hurricane-2 JUST TO SHOW THE BREADTH AND DIVERSITY OF BEACH'S AUSTRALIAN INTERESTS, WE NOW MOVE TO THE NORTHWEST OF THE CONTINENT ~ TO THE CARNARVON BASIN, WHERE WE PARTICIPATED IN A SANTOS-OPERATED JOINT VENTURE IN THE HURRICANE- 1 GAS DISCOVERY EARLIER THIS YEAR. THE SIGNIFICANCE OF THE HURRICANE-
Slide 28: Tipton West coal seam gas project
AND NOW WE SWOOP TO THE OTHER SIDE OF THE CONTINENT, TO SOUTHEAST QUEENSLAND, WHERE BEACH IS SEEKING TO ESTABLISH A POSITION IN THE EXPANDING GAS MARKET. SUBJECT TO SOME FURTHER DUE DIUIGENCE, WE ANTICIPATE MAKING A FINANCIAL COMMITMENT NEXT MONTH TO FUND THE DEVELOPMENT OF STAGE 1 OF ARROW ENERGY’S
Slide 29: Concluding remarks and thanks
LL CONCLUDE BY THANKING YOU AS FELLOW SHAREHOLDERS FOR YOUR SUPPORT OF A STRONG AND GROWING COMPANY. BEACH HAS BUILT A STRONG RESERVES BASE OVER THE LAST 5 YEARS AND HAS MANAGED TO INCREASINGLY DIVERSIFY IN TERMS OF SIZE AND SCOPE. WE HAVE GREAT PEOPLE WITH A PROVEN TRACK RECORD. | THANK THEM AND -
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