Beach Energy Limited · ASX:BPT
Beach Energy — Beach Petroleum — Karratha Institutional Conference (October 2006)
34 slides from Beach Energy's conference presentation, Oct 12, 2006
Slide 1: Beach Petroleum Limited Investors Presentation
BEACH a PETROLEUM, Beach Petroleum Limited Investors Presentation Reg Nelson — Managing Director Hector Gordon ~ Chief Operating Officer | October 2006
Slide 2: Today's Topics
Today’s Topics = Status of the Company a Financial Year 06 a A successful and diversified growth strategy « Growth since 2000 «» Key projects « Delhi acquisition — a landmark transaction a Outlook
Slide 3: Status of the Company
BEACH eo PETROLEUM, Beach Petroleum Limited Status of the Company | October 2006
Slide 4: Corporate Structure
Corporate Structure Market Capitalisation D. I fh ate ssued Shares (@ $1.40/share) 9 October 663 million $930 million 8 November an an (post rights issue) 840 million $1,176 million Admitted to ASX 200 in September 2006
Slide 5: Financial Year 06
BEACH eo PETROLEUM, Beach Petroleum Limited Financial Year 06 October 2006
Slide 6: Beach at end of FY06
Beach at end of FY06 @ Reserves « 24mmb Oil « 72 BCF Gas « 36 mmboe | ai ones = Production « 1.4 mmb oil in FY 06 CARNARVON 77 a Revenue BASIN » $158 million in FY 06 a Profit « $44 million in FY 06 & Market Cap a ~$900 million at 30 June ‘06 Cen ieRpuy
Slide 7: Reserves & Production Growth
Reserves & Production Growth mmboe 35 100 on om os o4 oS os TAPIS A$/bbl is 25 mimboe 1 0.5
Slide 8: Revenue Growth
Revenue Growth 180. 1605 1405 1205 Gross Revenue “4 on $ million 804 2 Gippsland mw Oiway 604 wSA maid 01 02 03 04 05 06 Financial Year
Slide 9: Low Cost Base Maintained
Low Cost Base Maintained Netback Based on Oil Price of A$85 per Barrel Production Costs Offshore (2P Reserves) OPEX (A$/bbl) $18 / bbl Transport (A$/bbl) Royalty (A$/bb!) RRT ~$22 /bbi Total Costs (A$/bbl) $40 / bbl
Slide 10: A Successful & Diversified Growth Strategy
BEACH PETROLEUM, Beach Petroleum Limited A Successful & Diversified Growth Strategy | October 2006
Slide 11: Growth through Exploration
Growth through Exploration Appraisal @ Exploration O01 02 03 04 O85 O06 @ 47 Exploration Wells — 32% success rate « 25 Appraisal Wells e Added 5 mmb @ ~$10/bbl i
Slide 12: Growth through Acquisition
Growth through Acquisition $ million 1000; 900; 800, 700, 600; 500+ 400; @ Market Cap* i Capital Raised 2601 2002 2603 2004 2005 2006 * At October 2006 | 12
Slide 13: Key Projects
Key Projects 13
Slide 14: Basker-Manta-Gummy
Basker-Manta-Gummy Beach 50% a Basker-Manta-Gummy Fields » 50% interest a 39.2 mmb 2P gross oil reserve (up by 168% from 23.3 mmb at project sanction) a Contingent resource of 379 P] gas & 19 mmb condensate (72 mmboe) id
Slide 15: Basker-Manta-Gummy
Basker-Manta-Gummy Beach 50% a Work to date « Basker-2 drilled July 2005 « Extended test of Basker-2 produced 0.8 mmb Nov 05 — May 06 Ne a oN oe : » 4 further development wells drilled ; ‘ So Manta Field in 2006. i ee Nye « Oil Reserves increased by 32% « Oil & Gas Resource increased by 240% « Insta
Slide 16: Basker-Manta-Gummy
Basker-Manta-Gummy Beach 50% @ Current Status SHUTTLE TANKER: “BASKER SPIRIT" « Subsea connections in progress « Crystal Ocean to depart Singapore ~12 October. « Production to commence early Nov from 4 wells (gross ~25,000 bopd) « Net Beach Production for L FY 07 ~2.5 mmb : ee "Production « Gas Proj
Slide 17: Cooper-Eromanga Basin
Cooper-Eromanga Basin = Cooper/Eromanga Basin (ex-Delhi) « 16 wells in FY 06 » 5 discoveries (3 oil / 2 gas) « > 40 wells planned in FY 07 « Oil Discovery at Callawonga-1 in July ‘06 (net ~0.75 mmb) FY Production Reserves (mmboe) (mmboe) 04 0.9 4.1 05 1.0 5.1 06 0.9 49 07-forecast 0.9 >5.0
Slide 18: Tipton West Coal Seam Gas
Tipton West Coal Seam Gas Beach 40% @ Proved & Probable (2P) reserves: 174 PJ @ Proved, Probable & Possible (3P) Reserves: 2,300 PJ # Close to markets & pipelines @ Acquisition cost $0.50/G] (2P Developed Reserves) 18.
Slide 19: Tipton West Coal Seam Gas
Tipton West Coal Seam Gas Beach 40% @ Phase 1 Development ~ 75 wells » 50 wells drilled to date » 25 connected and dewatering « Small gas flows commenced a On track for first gas sales early 2007 Initial gas sales agreement with Braemar Power Station Project for up to 10 PJ/year a Good Exploration p
Slide 20: High Reward Exploration
High Reward Exploration = New Zealand (BPT 20%) Cutter-1, spudded 10 October Target 80 mmbb! oil potential @ Carnarvon (BPT 10%) Hurricane-2, Q2 ‘07 Target 40-50 mmbbI oil potential = Offshore Otway Basin (BPT 50%) 3D Seismic Q1 ‘07 Target >1 TCF gas potential Drill FY 07 CAP PELOND 20...
Slide 21: Delhi Petroleum Acquisition
BEACH a PETROLEUM, Beach Petroleum Limited Delhi Petroleum Acquisition | October 2006
Slide 22: Delhi Acquisition
Delhi Acquisition each has purchased the elhi group of companies ("Delhi u Beach now owns approximately an average 21% of the Santos operated Cooper Basin Joint Ventures (*CBIV"’) @ CBJV assets include a ~300 mmboe reserves (net ~63 mmboe to Delhi) a Significant and strategic infrastructure assets a
Slide 23: Delhi Acquisition
Delhi Acquisition u Total Acquisition Cost $590 million = Assets $530 million « Group Structure (inc cash of approx. $45 million, inventory & tax losses) $60 million u 63 mmboe of Proved & Probable Reserves acquired for A$8.41/boe » Gas &Gas Liquids ~ A$1.60/GI . Oil ~ A$10.00/bbI @ Beach considers
Slide 24: Cooper Basin — Beach Assets
Cooper Basin — Beach Assets (post Delhi acquisition) CB JVs Beach ~21% | 24...
Slide 25: Cooper Oil Program
Cooper Oil Program a Development & Appraisal Program in existing oil fields m Beach Equity ~25% (but 38.5% of Naccowlah Block) a «700 mmb OOIP in Cooper Basin m Recovery from existing wells ~200 mmb (28%) m Increase recovery factor by 5-10% >> additional 35-70 mmb m Low risk/high success rate... but
Slide 26: Cooper Oil Program
Cooper Oil Program @ Analogy ~ Kenmore Field (Beach 100%) » OOIP 35 mmb a Drilled 9 wells 2003-05, 7 successes a Increased recovery factor from 35% to 41% -- net 2.2 mmb a Example of COP - Naccowlah Block (Beach 38.5%) « OOIP ~220 mmb « 5-10% increase in recovery will yield 11-22 mmb a 21 wells plan
Slide 27: Delhi Acquisition - Summary
Delhi Acquisition - Summary Assets complementary and well knowin to Beach @ 176% increase in 2P reserves at fair value a Transaction structure provided precluded counter bids from competing parties. a High potential upside in Cooper Oil Program a Gas swapping opportunities to add value to other Beac
Slide 28: Beach Post-Acquisition
Beach Post-Acquisition @ Reserves a Cooper/Eromanga 68 mmboe a Gippsland 20 mmboe a Surat 12 mmboe m@ Production a Above 10 mmboe in FY07 a 30% oil / 70% Gas & Gas Liquids + As at July 1, 2006 28...
Slide 29: Peer Comparison
Peer Comparison 100 2P Reserves* BPT AWE BPT ROC HDR AZA AED AMU_ TAP post pre Delhi Delhi ARQ * Pre-contingent BMG gas conversion 29...
Slide 30: Outlook: Production Growth
Outlook: Production Growth 12.5- roamboe M@ BMG Gas @ Tipton BMG || i CooperiEromanga (non Delhi) ©] CooperiEromanga Delhi et ® & x % S & «& ad $ Financial Year 30...
Slide 31: Outlook: Revenue Growth
Outlook: Revenue Growth Gross Revenue $ million 3007" 2507 20074 150 + 1007 505 Surat C1 Gippsiend mOway asa BOLD 04 02 03 04 05 06 Target Financial Year 31
Slide 32: Outlook: Extensive Drilling
Outlook: Extensive Drilling FY 07: 68 Wells (4-40 Delhi wells) _ 70, 60, 504 Number of 40; Wells 304 20, 10; 01 02 03 04 05 06 07 El Unsuccessful I Success-Gas @ Success-Oil @ New wells 32...
Slide 33: Outlook: FY Exploration
Outlook: FY 07 Exploration AREA ACTIVITY Expected net EXPENDITURE Cooper/Eromanga ~ Exploration 39 wells 5 mmboe (risked) $33 million ~ Appraisal 25 Wells 1 mmboe (risked) $19 milion Surat/Bowen Champagne Creek-1 Potential 36 BCF $4 million Otway Glenaire-t Potential 30 BCE $8 milion & 3D seismic Ca
Slide 34: Important Notice & Disclaimer
Important Notice & Disclaimer ach Petroleum | has prepared U : : ae accu completeness F corectness of the information, opinions an agents oF part of any © Wi of ae Beach ore Ay offer or Invitation to subscribe fa ul Beach a awhile, ae Ippue Of ae Gccoment under the Corp:
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