Beach Energy Limited · ASX:BPT
Beach Energy — Non-Deal Roadshow (June 2012)
40 slides from Beach Energy's roadshow presentation, Jun 6, 2012
Slide 1: Asian Roadshow June 2012
Beach Energy Limited For personal use only Asian Roadshow June 2012 Asian Roadshow – June 2012 Slide 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: Beach overview
For personal use only Beach overview Asian Roadshow – June 2012 Slide 3
Slide 4: A unique value proposition
A unique value proposition For personal use only Asian Roadshow – June 2012 Slide 4
Slide 5: Beach Energy overview
Beach Energy overview Underlying Net Profit (year to June) • ASX 100 oil and gas explorer and producer For personal use only • Market capitalisation ~ A$1.3 billion • Strong balance sheet – net cash ~ A$220 million, undrawn debt facility of A$150 million • Forecast record underlying FY12 NPAT • FY12
Slide 6: Large Resource base to build Reserves
Large Resource base to build Reserves 2P Reserves – 77 MMboe* For personal use only 2C Contingent Resources – 583 MMboe* 2P Reserves increase of 17% and contingent Resource increase of 96% on FY10 * Volumes quoted are as at 30 June 2011 Asian Roadshow – June 2012 Slide 6
Slide 7: FY12 production guidance of 7.4 MMboe
FY12 production guidance of 7.4 MMboe Beach actual and forecast production For personal use only • Production guidance for FY12 primarily driven by: – Better access for activities following 7.4 MMboe Cooper Basin floods 6.6 MMboe – Enhanced exploration and development drilling campaigns Oil Oil 2.6
Slide 8: Unlocking the Cooper Basin gas potential
For personal use only Unlocking the Cooper Basin gas potential Asian Roadshow – June 2012 Slide 8
Slide 9: Prolific acreage position strategically located
Prolific acreage position strategically located For personal use only Beach is well placed strategically and geographically, with the necessary infrastructure in place to supply gas to the market for generations to come Asian Roadshow – June 2012 Slide 9
Slide 10: Eastern Australian gas markets are growing
Eastern Australian gas markets are growing For personal use only • The ‘clean energy future’ is likely to incorporate a larger role for natural gas • Current domestic gas demand ~ 715 petajoules (PJ) per annum: – ~ 100 PJ from Cooper Basin • Domestic and LNG project gas demand expected to grow to ~
Slide 11: Cooper Basin is a potential supply option for LNG
Cooper Basin is a potential supply option for LNG Gladstone based LNG projects For personal use only • Cooper Basin gas does not have the potential challenges that may impact long-term coal seam gas developments in Queensland and New South Wales Benefits of non-CSG supply to LNG proponents include:
Slide 12: An unconventional and logical thought process
For personal use only An unconventional and logical thought process Asian Roadshow – June 2012 Slide 12
Slide 13: EIA – United States Gas Production Projection
EIA – United States Gas Production Projection 2000 2012 For personal use only US Natural Gas Production 1990-2020 US Natural Gas Production 1990-2035 Sources: History: Advanced Resources International, Inc. (ARI). Projections: Source: US Energy Information Administration, AEO2012 Energy Information
Slide 14: Why the Nappamerri Trough?
Why the Nappamerri Trough? • For personal use only Primary focus was to find the best shale acreage in Australia • All regions in Australia were considered • Key factors considered in identifying the primary target: – Rock quality, i.e. organic content, brittleness – The right environment, i.e. thic
Slide 15: The emergence of a regionally significant gas resource
The emergence of a regionally significant gas resource For personal use only Drilling down-dip and off-structure has identified a massive resource opportunity Asian Roadshow – June 2012 Slide 15
Slide 16: Commanding acreage position
Commanding acreage position PEL 218 ~1,600 km2 For personal use only • Beach 100% (Permian) • 2 Tcf of contingent resource booked in the Permian ATP 855P ~1,670 km2 • Beach 60% (operator), Icon Energy 40% • First dedicated shale well in 2H 2012 SACB JV ~7,100 km2 • Beach 20.21%, Santos 66.6% (operat
Slide 17: Program highlights to date
Program highlights to date • Results from Encounter-1 and Holdfast-1 For personal use only exceeded expectations due to: – Up to 2 MMscfd initial gas flow rate from Holdfast-1 – Up to 750,000 scfd from one frac stage in the Patchawarra from Encounter-1 – 2 Tcf contingent resource booked for both wel
Slide 18: Shale and basin centred gas play
Shale and basin centred gas play For personal use only Source: Amended from Schenk and Pollastro, 2002 Gas saturation across a continuous shale and basin centred gas play Asian Roadshow – June 2012 Slide 18
Slide 19: Advantages of Beach's Cooper Basin acreage
Advantages of Beach’s Cooper Basin acreage For personal use only • Good working relationship with pastoral owners and other stakeholders • Co-operative not competitive land use • Semi-desert country • Relatively flat topography • Well established oil and gas infrastructure • Raw and sales gas pipeli
Slide 20: Shale and sands isolated from aquifers
Shale and sands isolated from aquifers For personal use only • Three cemented casing strings in the first 1,000 metres isolate surface aquifer • Two cemented casing strings between 1,000 and 2,000 metres isolate the Eromanga aquifers • Eromanga aquifers well above the target zone • The Triassic zone
Slide 21: 2012 proposed unconventional drilling program
2012 proposed unconventional drilling program For personal use only Asian Roadshow – June 2012 Slide 21
Slide 22: Next steps
Next steps • Complete final fracture stimulation stage for Encounter-1 For personal use only • Independent review of all reserves and resources underway • Drill vertical delineation wells to appraise shale and basin centred gas accumulation • Design and drill three horizontal wells • Expand drilling
Slide 23: Other unconventional opportunities
Other unconventional opportunities • Significant acreage positions in other Otway Basin • Conventional plays proven – gas, For personal use only prospective basins (Beach 35-67%) condensate and oil • Moderate to high TOC’s • Further potential for gas and liquids • Gas and liquids prone • Complementa
Slide 24: SACB/SWQ JV – Significant long-term resource potential
For personal use only SACB/SWQ JV – Significant long-term resource potential Asian Roadshow – June 2012 Slide 24
Slide 25: SACB/SWQ JV
SACB/SWQ JV For personal use only • Santos operated • Equity interests of 20.21% for the SACB JV and 23.2% for the SWQ JV • A significant land holding of 26,800 km2 (gross) • Situated in a proven and prolific basin • Cooper Basin cumulative gross production to date of approximately 6 Tcf • Provides
Slide 26: SACB/SWQ JV
SACB/SWQ JV • A diversified product stream For personal use only delivering gas, gas liquids and oil to multiple markets • Synergies with other Beach operational areas • Significant infrastructure made up of: – Wells accessing Permian strata – Gathering systems across the tenement area – Gas and oil
Slide 27: Resource to reserve conversion drivers
Resource to reserve conversion drivers For personal use only Infill drilling – 40 vs 200 acre spacing • Infill drilling with denser well spacing moving towards 40 acres • More focused fracture stimulation of individual zones • More efficient wellbore hydraulics, resulting in lower abandonment pressu
Slide 28: Dominant Western Flank acreage position
For personal use only Dominant Western Flank acreage position Asian Roadshow – June 2012 Slide 28
Slide 29: Cooper Basin – Western Flank oil
Cooper Basin – Western Flank oil Western Flank oil is a core contributor For personal use only to Beach due to: • Sales in Brent, considerably stronger than WTI • High net back per barrel of approx. A$75* (incl. Opex, royalties and transportation costs) • Strong equity positions • Quick drill and ti
Slide 30: Oil focused 3D and 2D seismic programs
Oil focused 3D and 2D seismic programs PEL 91 For personal use only • Beach 40% (operator), Drillsearch 60% • 336 km2 Aquillus 3D and 151 km2 Limbatus 3D seismic being processed • Targeting Birkhead channel plays, in line with PEL 104, and 17 Namur prospects • Interpretation expected to be completed
Slide 31: Western Flank oil production
Western Flank oil production For personal use only PEL 91 • Bauer oil field online and producing ~ 150 bopd (net), expected to increase to ~ 800 bopd (net) in the coming months PEL 92 • Net production ~ 3,600 bopd via trucking to Moomba • Further increase in trucking being evaluated ahead of new tru
Slide 32: New pipelines proposed
New pipelines proposed • Lycium to Moomba trunkline, For personal use only Beach 60% (operator), Senex 40%: – Capacity of 15,000 bopd – 8 inch pipeline – Connection into Moomba facility expected in Q4 2012 • Growler to Lycium flowline, Beach 40% (operator), Senex 60%: – Capacity of 8,000 bopd – 6 in
Slide 33: Western Flank gas and gas liquids production
Western Flank gas and gas liquids production For personal use only • Beach 50% (operator), Drillsearch 50% • First production from the Middleton Brownlow production licence • Gas sale agreement with SACB JV for minimum 3 Bcf of raw gas • Fiberspar flexible pipeline reduced cost and accelerated pipe
Slide 34: International: Chasing 'Big Oil' and Rift Basins
For personal use only International Chasing ‘Big Oil’ and Rift Basins Asian Roadshow – June 2012 Slide 34
Slide 35: Rift systems - Lake Tanganyika South Block, Tanzania
Rift systems - Lake Tanganyika South Block, Tanzania • Beach 100% For personal use only • Permit 7,200 km2 (Lake Albert 5,300 km2) • Underexplored area with high potential • Natural oil seeps on Lake Tanganyika, as with Lake Albert, indicate a working petroleum system • Total S.A. and CNOOC invested
Slide 36: Egypt overview
Egypt overview For personal use only • Beach interests range from 15 – 22% • An established and growing portfolio of production, development and exploration opportunities • North Shadwan - first oil from near shore fields, development of Burtocal expected 2013/14 • Abu Sennan - six well appraisal/ e
Slide 37: Gulf of Suez – North Shadwan
Gulf of Suez – North Shadwan • Beach 20%, BP 50% (operator), For personal use only Tri Ocean 30% NS 377 and NS 385 • Near shore field NS 377 producing ~ 1,000 bopd (gross) via pipeline to Ras Ghara facility • NS 385 development well expected to spud Q3 2012 • Total oil flow expected to build to ~ 3,
Slide 38: Abu Sennan concession – exploration success
Abu Sennan concession – exploration success • Beach 22%, Kuwait Energy 50% For personal use only (operator), Dover Investments 28% • Commencing Q3 2012: – 3 well exploration program – extended production testing • First four exploration wells successful ZZ-4 • Gas and condensate, total flow rate of
Slide 39: 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+) • ~ 2,500 km of regional and infill 2D s
Slide 40: Contact information
Contact information Beach Energy Limited – 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.