Beach Energy Limited · ASX:BPT
Beach Energy — Citi's 4th Australian Investment Conference (October 2012)
44 slides from Beach Energy's conference presentation, Oct 23, 2012
Slide 1: Beach Energy Limited – October 2012
For personal use only October 2012 Investor roadshow - March 2012 October 2012 Beach Energy Limited Slide 1
Slide 2: Compliance statements and disclaimer
Compliance statements Disclaimer For personal use only • 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: Strategic, operational and financial overview
For personal use only Strategic, operational and financial overview October 2012 Slide 3
Slide 4: Company overview
Company overview • ASX 100 company For personal use only • Market Cap ~ $1.7 billion* Financial • FY12 NPAT of $164 million • Cash at 30 September 2012 of $352 million • Nil debt, 2017 convertible note of $150 million • Undrawn $150 million multi-option finance facility • FY12 Operating cash flow $2
Slide 5: 2P reserves, 2C contingent resources and production
2P reserves, 2C contingent resources and production 2P reserves – 93 MMboe1 Actual and forecast production For personal use only 9.0 MMboe 8.5 MMboe 7.5 MMboe 6.6 MMboe Gas* 2C resources – 466 MMboe1 Gas* 4.8-5.0 MMboe (28-29 PJe) Gas* 4.8 MMboe 4.5 MMboe (28 PJe) (26 PJe) Oil Oil 3.7-4.0 MMbbl Oil
Slide 6: Key FY13 operational activities
Key FY13 operational activities For personal use only October 2012 Slide 6
Slide 7: FY13 Capital expenditure guidance
FY13 Capital expenditure guidance Forecast FY13 For personal use only FY13 FY13 reserves Forecast Forecast Forecast Seismic additions Capex ($M) Wells 2D – km 3D – km2 MMboe DEVELOPMENT Cooper Basin – non-SACB JV 50 – 60 15 – 20 – – – Cooper Basin – SACB/SWQ JV 100 – 130 35 – 45 – – 10.0 Internation
Slide 8: The Eastern Australian gas market opportunity
For personal use only The Eastern Australian gas market opportunity October 2012 Slide 8
Slide 9: Strategically located acreage
Strategically located acreage For personal use only Beach is well placed to supply gas to the market for generations to come October 2012 Slide 9
Slide 10: Eastern Australian gas markets are growing
Eastern Australian gas markets are growing Projected east coast total demand • The ‘clean energy future’ is likely to For personal use only incorporate a larger role for natural gas • Gas demand for domestic market and LNG projects expected to grow to ~ 3,000 PJ by 2025 • 2015+ opens up various dome
Slide 11: Cooper Basin a potential supply option for LNG
Cooper Basin a potential supply option for LNG • ~ 80% of east coast 2P reserves are Gladstone based LNG projects For personal use only owned by parties developing LNG projects or with LNG aspirations • Industry commentators suggesting gas prices trending toward $6-9/GJ Benefits of non-CSG supply to
Slide 12: An unconventional and logical thought process
For personal use only An unconventional and logical thought process October 2012 Slide 12
Slide 13: PEL and ATP 855P
PEL 218 and ATP 855P For personal use only Commanding acreage position with multiple targets to be addressed October 2012 Slide 13
Slide 14: Unconventional gas program to date
Unconventional gas program to date PEL 218 ~ 1,600 km2 For personal use only • Beach 100% (Permian) • Four vertical wells drilled • Gas flow from first two wells up to ~ 2 MMscfd per well • Fracture stimulation of Moonta-1 and Streaky-1 imminent ATP 855P ~ 1,670 km2 • Beach 60% (operator), Icon Ener
Slide 15: Things you can find in your own backyard…
Things you can find in your own backyard… For personal use only A relatively under-explored part of the Cooper Basin with enormous potential October 2012 Slide 15
Slide 16: Shale and basin centred gas play
Shale and basin centred gas play For personal use only Gas saturation expected through the Permian zone of the Nappamerri Trough October 2012 Slide 16
Slide 17: Beach operated program highlights to date
Beach operated program highlights to date • Holdfast-1 and Encounter-1 gas flows up to For personal use only 2.1 MMscfd, post fracture stimulation • Seven stage fracture stimulation for Holdfast-1 and six stage for Encounter-1 • Logs from Moonta-1 and Streaky-1 indicate in excess of 1,000 metres of
Slide 18: FY13 unconventional drilling program
FY13 unconventional drilling program For personal use only October 2012 Slide 18
Slide 19: Dominant Western Flank acreage position
For personal use only Dominant Western Flank acreage position October 2012 Slide 19
Slide 20: Western Flank – Cooper Basin
Western Flank – Cooper Basin For personal use only 2013 net production target of 9,000 to 10,000 bopd from the Western Flank October 2012 Slide 20
Slide 21: Western Flank oil
Western Flank oil Western Flank oil is a core contributor For personal use only to Beach due to: • Sales in Brent • High net back per barrel of ~ A$80* (including opex, royalties and transportation costs) • Strong equity positions • Quick drill and tie-in periods • High flow rates from wells • Excel
Slide 22: PEL 91
PEL 91 • Beach 40% (operator), Drillsearch 60% For personal use only • Bauer potential recoverable oil of 10+ MMbbls • Production of 1,000 bopd (gross) from Bauer-1, targeting 10,000 bopd (gross) in Q2 2013 • Hanson facility expected to be on-line Q1 2013 • Chiton production potential of 200 bopd (g
Slide 23: PEL 92
PEL 92 • Beach 75% (operator), Cooper Energy 25% For personal use only • Current gross production of 4,500 bopd • Gross production expected back at 6,000 bopd upon completion of Lycium-Moomba trunkline • Butlers-2, -3, -4, Parsons-5, Germein-1 and Elliston-1 all tied-in • Butlers-5, -6 and Christies
Slide 24: PRL 15, PEL 104, PPL and PEL
PRL 15, PEL 104, PPL 240 and PEL 111 • Beach 40%, Senex Energy 60% (operator) For personal use only • Current gross production of 5,000 bopd from Growler and 350 bopd from Snatcher • Oil discovery at Mustang-1, 800 bopd (gross) flowed from a controlled initial production test • PPL 240 granted over
Slide 25: PEL 106B and PEL
PEL 106B and PEL 107 • PEL 106B – Beach 50% (operator), Drillsearch 50% For personal use only • First production in FY12 from the Middleton / Brownlow production licence • Initial gross flow rates of 25 MMscfd (15 TJd sales gas and 325 bbld LPG and condensate) • Production under current contract shu
Slide 26: International
For personal use only International October 2012 Slide 26
Slide 27: International overview
International overview For personal use only • Attractive royalty based fiscal North Shadwan regime and farm-in terms • Est Cobalcescu offshore block • Near shore oil field NS 377 producing 1,000 km2, block-wide 3D seismic • NS 385-1 development well spudded • Water depth < 100 metres • NS 394 (Burt
Slide 28: Tanzania – Lake Tanganyika South Block
Tanzania – Lake Tanganyika South Block For personal use only A significant acreage position in the prospective East African Rift October 2012 Slide 28
Slide 29: 2D seismic survey
2D seismic survey • Natural oil seeps in the Lake Tanganyika For personal use only south block (7,200 km2) indicate a working petroleum system • Potential for large discoveries (> 200 MMbbl) • Airborne gravity and hi-resolution aeromag data acquired in 2010 • 2,080 kilometre 2D seismic survey comple
Slide 30: Lake Tanganyika South Block potential play types
Lake Tanganyika South Block potential play types For personal use only Potential targets from recently acquired 2D seismic, red = gas, green = oil Direct hydrocarbon indicators consistent with an active petroleum system October 2012 Slide 30
Slide 31: Egypt
Egypt For personal use only A balanced portfolio of assets with growing oil production October 2012 Slide 31
Slide 32: North Shadwan concession
North Shadwan concession • Beach 20%, BP 50% (operator), For personal use only Tri Ocean 30% NS 377 and NS 385 • Near shore field NS 377 producing ~ 700 bopd (gross) via pipeline to Ras Ghara facility • NS 385-1 development well spudded • Total oil production expected to build to ~ 2,500 bopd (gross
Slide 33: Abu Sennan concession
Abu Sennan concession • Beach 22%, Kuwait Energy 50% For personal use only (operator), Dover Investments 28% • Four exploration wells successful, with combined total gross flow rate of ~ 12,000 boepd (gross) • New three well exploration program approved: – First well, ASA-1X, spudded in August 2012
Slide 34: Mesaha concession
Mesaha concession • Beach 15%, Melrose 40% For personal use only (operator), Hellenic 30%, Kuwait Energy 15% • The largest concession area in Egypt at 42,700 km2 • Possible rift basin similar to Gulf of Suez • Potential for very large oil fields (>100 MMbbl+) • 2,885 kilometres of regional and infil
Slide 35: Romania – Est Cobalcescu block
Romania – Est Cobalcesu block • Post Beach farm-in: Beach 30%, For personal use only Melrose 40% (operator), Petromar 30% • Est Cobalcescu block is 1,000 km2, with 3D seismic over block being processed • Water depth < 100 metres • Potential for both oil and gas plays • Significant leads identified o
Slide 36: Appendices
For personal use only Appendices 1. General 2. Other operations October 2012 Slide 36
Slide 37: The Cooper Basin
The Cooper Basin For personal use only October 2012 Slide 37
Slide 38: Advantages of Beach's Cooper Basin acreage
Advantages of Beach’s Cooper Basin acreage • Co-operative not competitive land use For personal use only with pastoral owners and stakeholders • Semi-desert country • Relatively flat topography • Well established gas infrastructure • Three cemented casing strings in the first 1,000 metres isolate su
Slide 39: Next steps – unconventional program
Next steps – unconventional program • Drill vertical delineation wells to appraise shale and basin centred gas accumulation For personal use only • Design and drill horizontal wells • Expand drilling program with up to six horizontal wells around Holdfast-1 and Encounter-1 to further characterise pr
Slide 40: Other operations
For personal use only Other operations October 2012 Slide 40
Slide 41: Other unconventional opportunities
Other unconventional opportunities Otway Basin • Conventional plays proven – gas, • Significant acreage positions in other (Beach 35-67%) condensate and oil For personal use only prospective basins • Moderate to high TOC’s • Further potential for gas and liquids • Gas and liquids prone • Mature and
Slide 42: Bonaparte Basin
Bonaparte Basin • Beach earning up to 90% of For personal use only onshore and up to 55% of offshore areas • Underexplored to date due to lack of quality modern seismic • Conventional and deep unconventional targets • Highly prospective as a result of: – Working petroleum systems identified in the f
Slide 43: Otway and Gippsland basins
Otway and Gippsland basins Otway gas and liquids For personal use only • Beach 35-67% • Conventional plays proven – gas, condensate and oil discoveries • Casterton main source rock, Map with troughs shown and with most attractive permits outlines unconventional targets – Moderate to high TOC’s – Gas
Slide 44: Contact Information
Contact Information Head office For personal use only 25 Conyngham Street Glenside SA 5065 Tel: +61 8 8338 2833 Fax: +61 8 8338 2336 Website: www.beachenergy.com.au Chris Jamieson General Manager Investor Relations Tel: +61 8 8338 2833 Mob: +61 8 (0)487 173 244 Email: chris.jamieson@beachenergy.com.
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