Beach Energy Limited · ASX:BPT
Beach Energy — Euroz Rottnest Island Conference 2008
20 slides from Beach Energy's conference presentation, Mar 11, 2008
Slide 1: Euroz Rottnest Island Conference 2008
For personal use only 2008 Euroz rottnest Island Conference rEg NELSoN Managing Director HECTor gorDoN Chief Operating Officer
Slide 2: Financial Overview
Financial Overview For personal use only production: 4.6 mmboe with oil production up by 46% Upward trend since 2003 Sales revenue: $249 million – 16% increase Upward trend since 2003 Operating Cashflow: $52 million – 72% increase Increased sales volumes and commodity prices Upward trend since 2003
Slide 3: Company Strategy
Company Strategy For personal use only Beach Petroleum’s strategy is: Invest in quality opportunities where Beach can add value Capitalise on significant acreage and infrastructure holdings Increase exposure to high reward exploration & development opportunities Continually optimise portfolio balanc
Slide 4: Key Projects
For personal use only Key Projects Cooper oil Tipton West Record production Increased production Increasing reserves Further development planned Bmg Exploration Production resumed High reward in November International
Slide 5: Underlying Profit
Underlying Profit For personal use only 1H 2007 1H 2006 $m $m Net profit after tax 58.769 23.705 Significant Items Remove BMG Sale 64.169 – Remove unrealised commodity hedges 22.052 27.984 Remove exploration write-offs 5.511 0.876 Remove bridging finance setup costs – 8.269 Tax impact at 30% 10.982
Slide 6: Underlying Profit
Underlying Profit For personal use only Drivers: Sale of BMG, unrealised hedging/FX and exploration write-offs. 5.5 100 11.0 (8.0) 90 (64.2) Underlying Profit ($ millions) 22.1 80 70 60 58.8 50 40 30 25.2 20 10 0 1H 2007 UNREALISED TAX WRITE-OFFS PRRT BMG SALE ADJUSTED COMMODITY 1H 2007 HEDGES
Slide 7: Operating Cash Flow
Operating Cash Flow For personal use only Up 72% due to increased sales volumes and commodity prices. 60 $51.6m 50 Cash Flow ($ millions) 40 30 $29.9m $20.5m $18.2m 20 10 0 1H 2005 1H 2006 1H 2007 1H 2008
Slide 8: Production
Production use only 11 Production has increased 10 9.4 10 times since 2003**. personal 9 Expectation production (MMboe) 8 can be maintained at 7 ~10mmboe/pa from 6 existing assets for the 9–10 Production 5 next 3 years. 4 3 Increase in production in For 2 1.4 2008 to 9–10mmboe. 1.1 1 0.9 0 2004 2005
Slide 9: Reserves
Reserves For personal use only 100 Reserves have 89.6 90 increased approx 80 20 times since 2003**. Reserves (MMboe) 70 Current R/P ratio ~9. 60 50 Substantial contingent 40 and possible resources 30 26.2 of ~170mmboe. 20 10.8 10 4.2 0 2004 2005 2006 2007 ** All figures based on FY end 2003 and FY e
Slide 10: Revenue
Revenue For personal use only Up 30% due to higher production and commodity prices, which outweighed the adverse AUD/USD exchange rate movement. 400 350 $340m Revenue ($ millions) 300 $262m 250 200 150 100 $79m 50 $30m 0 1H 2005 1H 2006 1H 2007 1H 2008
Slide 11: Delhi Hedging Profile
Delhi Hedging Profile For personal use only All hedging due to run out by December 2008. 1.4 1.2 Hedging (MMboe) 1.0 0.8 0.6 0.4 0.2 0 July Dec June Dec June Dec 2006 2006 2007 2007 2008 2008
Slide 12: Australian Operations
Australian For personal use only Operations positive outlook Strong oil price Increase in reserves producing Assets Cooper Eromanga oil projects, Bmg, Tipton West Exploration portfolio Carnarvon Basin, otway Basin, Bass Basin, Taranaki Basin, Canterbury Basin
Slide 13: Cooper Eromanga Oil Projects
For personal use only Cooper Eromanga Oil Projects 1H production 0.9 mmb Santos program Up 9% Development, Appraisal & Near Field Appraisal in central basin Reserves Dec 2007 ~15 mmb 1H 49 wells at 67% success Increase of 24% 1H Reserve adds 1.4 mmb Beach program Forecast FY08 Production Exploration
Slide 14: Cooper Eromanga Oil Projects
Cooper Eromanga Oil Projects For personal use only New Field Exploration Beach Petroleum Near Field Murta Exploration Risk Targeted Drilling Infield Drilling “STO Operated Cooper Oil Project” Reward
Slide 15: Basker Manta Gummy
For personal use only Basker Manta Gummy Beach 30% post divestment Key operational issues 10% to Itochu (June 2007) encountered in 2007 resolved 10% to Sojitz (Dec 2007) Mooring repair completed Oil production now back at 2008 drilling aims to fully ~11,000 bbl/d develop oil reserves and progress ga
Slide 16: Tipton West
For personal use only Tipton West Significant acreage Three pilot programs and resource position producing promising results 2P volumes: 293 PJ** 3P volumes: 2316 PJ** Close proximity to growing gas markets and key phase 1 development infrastructure drilling completed – 82 wells An undervalued asset
Slide 17: International Operations
International For personal use only Operations Beach is becoming increasingly active outside of our traditional Spain Albania Ebro Basin Duressi Block (Adriatic Sea) areas of interest: Opportunities are rigorously analysed and must meet technical and commercial criteria. Clear focus to capture oppor
Slide 18: Outlook
production ~10mmboe (~35% oil) Outlook For personal use only Development Basker Oil development Manta – Gummy gas appraisal and development Tipton West CSG expansion Callawonga and Parsons appraisal and development Exploration Total of ~125 wells for FY 2008 Focus on Cooper Oil Offshore and internat
Slide 19: Disclaimer and important notice
Disclaimer and important notice For personal use only This presentation contains forward looking statements that are subject to risk factors associated with oil and gas businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety
Slide 20: For personal use only
For personal use only