Beach Energy Limited · ASX:BPT
Beach Energy — Wilson HTM Energy Conference 2010
28 slides from Beach Energy's conference presentation, Apr 20, 2010
Slide 1: On the Road to Future Growth
Beach Energy Limited For personal use only On the Road to Future Growth Wilson HTM Energy Conference Sydney, 20 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 Overview of Beach Energy Limited • Strategy • Base business • Growth potential Positioning for long- term growth • What • Where • How 3
Slide 4: Corporate framework
Corporate framework For personal use only • Consistent, targeted growth: – Long-term cash flow, production and reserves – Value driven investments • Thinking ahead of the pack: – Early entry, low risk, high return – Participation in emerging technologies and opportunities • Balanced portfolio: – 60:
Slide 5: Next two to five years
Next two to five years For personal use only Exploration Development Growth Growth Oil & gas discoveries in Develop large contingent Cooper with aim to add up to conventional gas resource of Goal: 20 MMboe new reserves approx. 500 PJ already booked To double in Cooper & elsewhere production Develop
Slide 6: Transformational opportunities
Transformational opportunities For personal use only Exploration Development Growth Growth Develop large Goal: Oil exploration in Cooper contingent shale gas and unconventional gas in To transform via Cooper & other resource in Cooper large discoveries Australasian basins and to become a Identify pr
Slide 7: Reserves & resources snapshot: June 2009
Reserves & resources snapshot: 30 June 2009 For personal use only 2P Reserves: 2P Reserves & Contingent 66 MMboe Resources: 359 MMboe 2P Reserves are a fraction of the total resource base Cooper / Eromanga Gippsland Egypt Cooper / Eromanga 2P Gippsland Other A solid and enviable base from which to g
Slide 8: Reserves and production
Reserves and production For personal use only Production 2P Reserves 10 160 9 140 8 120 7 100 6 MMboe MMboe 5 80 4 60 3 40 2 20 1 0 0 FY 2007 FY2008 FY 2009 FY 2010 FY 2006 FY2007 FY 2008 FY 2009 est. Gas & Gas Liquids Oil Gas & Gas Liquids Oil • Consistent production performance: • Solid reserves g
Slide 9: 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 10: The 'base business': Conventional Cooper Basin oil & gas
The ‘base business’: Conventional Cooper Basin oil & gas For personal use only Cooper Basin Oil Cooper Basin Gas 2P reserves 14.3 MMbbl 2P reserves 228 PJ & 7.4 MMboe • Comprised of three key areas: • Gas & ethane contracts with major – Western flank (Beach operated) retailers and end consumers – Ce
Slide 11: The 'base business' - Gulf of Suez: First oil within months
The ‘base business’ - Gulf of Suez: First oil within months For personal use only • Beach 20% interest • High potential Gulf of Suez acreage • Three existing oil discoveries: – NS 377 and 385 („near shore fields‟) – NS 394 „Burtocal‟ • First oil expected Q3 2010 from near shore fields • Seeking new
Slide 12: Finding more oil in Egypt
Finding more oil in Egypt For personal use only • Highly prospective region • Long established industry - favourable legislative & fiscal regime • Home to giant oil fields (500 - 800 MMbbl) such as Morgan, July & Ramadan • Extensive infrastructure • Low cost • Large opportunity deal flow 12
Slide 13: The 'base business' - Gippsland Basin: Maximising economic potential
The ‘base business’ - Gippsland Basin: Maximising economic potential For personal use only • Reserves still under review • Gas development potential still remains • Exploration upside exists for oil & gas • FPSO contract up for renewal January 2012 • Basker-5 workover may have positive impact on res
Slide 14: 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 15: 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 16: 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 17: 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 18: Cooper Basin shale gas: 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 19: Nappamerri Trough: Geographical context vs US basins
Nappamerri Trough: Geographical context vs US basins For personal use only Cooper Basin Nappamerri Trough 19
Slide 20: US technology improvements drive down costs: e.g. Bakken Shale
US technology improvements drive down costs: e.g. - Bakken Shale For personal use only • Technology advancements in Bakken Shale (oil), North Dakota multi – stage frac completions is driving efficiencies in US oil 40 & gas developments 35 30 • Key advancements are particularly associated with 25 lon
Slide 21: Cooper Basin shale gas: Similar to best US plays
Cooper Basin shale gas: Similar to best US plays For personal use only Parameter Cooper Basin Barnett Haynesville Nappamerri (Texas) (Louisiana) Trough Depth (ft) 9500 - 11500’ 5400 - 9600‟ 10000 -13000‟ Thickness (ft) 400 - 500’ 250 - 500‟ 200 – 300‟ Petrology Siliceous Siliceous Argillaceous Mudst
Slide 22: 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 23: 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 Value Mitsui - Anadarko Marcellus Feb 10 US$1.4b Total - Chesapeake Barnett Jan 10 US$2.25b ExxonMobil – XTO Energy Included 1 million Dec 09 US$41b acres of vario
Slide 24: Some other long-term growth opportunities: 'Big oil' and 'big gas'
Some other long-term growth opportunities: ‘Big oil’ and ‘big gas’ For personal use only Papua New Guinea Tanzania Australia New Zealand 24
Slide 25: Tanzania - East African Rift: An emerging 'big oil' province
Tanzania - East African Rift: An emerging ‘big oil’ province For personal use only • Beach 100% • Under - explored, high potential region • Significant success in nearby analogous areas (Uganda) • Recent M&A activity in Uganda highlights regional potential • Potential for large (> 200+ MMbbl) discov
Slide 26: Offshore 'big gas' opportunities
Offshore ‘big gas’ opportunities For personal use only Browse Basin Gulf of Papua Canterbury Basin • LNG supply potential from existing portfolio: – Burnside (multi-Tcf discovery made in 2009, Beach 7.34%) – Pandora (mean gas resource approx. 0.8 Tcf, Beach 6.36%) – Barque gas prospect (multi-Tcf po
Slide 27: Beach Energy
Beach Energy For personal use only • Sustainable underlying base business: – Long-life reserves – Long-term production and cash-flow – Asset, product and market diversity • Tangible growth potential targeting regionally specific opportunities: – Cooper Basin shale gas – Egypt – Game-changing explora
Slide 28: On the Road to Future Growth
Beach Energy Limited For personal use only On the Road to Future Growth Wilson HTM Energy Conference Sydney, 20 April 2010 Neil Gibbins General Manager – Exploration and Development 28