Beach Energy Limited · ASX:BPT
Beach Energy — ASX Small to Mid Caps Conference New York 2010
21 slides from Beach Energy's conference presentation, Mar 4, 2010
Slide 1: The 'emergence' of Cooper Basin shale gas
Beach Energy Limited For personal use only The ‘emergence’ of Cooper Basin shale gas ASX Small to Mid Caps Conference New York, 4 March 2010 Steve Masters Manager – Commercial & Corporate 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 The emergence of Energy Limited Cooper Basin shale gas • Strategy • What • Base Business • Where • Growth Potential • How 3
Slide 4: Beach Energy Limited – A compelling value proposition
Beach Energy Limited (ASX : BPT) – A compelling value proposition For personal use only • 2P reserves of 66 MMboe Strong base • Sustainable long-term oil & gas production business • FY 2010 production guidance of 8.0 MMboe • $118 million cash & zero debt** • Huge Cooper Basin shale gas resource pote
Slide 5: 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 Cooper / Eromanga Gippsland Egypt Cooper / Eromanga 2P Gippsland Other A solid and enviable base from which to grow, plus a substantial portfolio of emerging opportu
Slide 6: 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 7: 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 & gas to eastern Australian markets: – Diversified asset, product and market mix • Beach participates in approx. 300 exploration and production licenses: – E
Slide 8: The 'base business' – Conventional Cooper Basin oil and gas
The ‘base business’ – Conventional Cooper Basin oil and 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 –
Slide 9: 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 10: 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 dome
Slide 11: 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 multip
Slide 12: Nappamerri Trough – Potential gas in place greater than Tcf
Nappamerri Trough – Potential gas in place greater than 200 Tcf For personal use only • Extensive and thick shale packages • Similar properties to the best US shale plays • Nappamerri Trough total area ~ 10,000 km2 (~ 3,800 sq miles) • Potential gas in place 20 – 100 Bcf/km2 (50 – 250 Bcf/sq mile) •
Slide 13: Nappamerri Trough – Geographical context vs US basins
Nappamerri Trough – Geographical context vs US basins For personal use only Cooper Basin Nappamerri Trough 13
Slide 14: 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 15: Nappamerri Trough shales compare favorably with US shale gas plays
Nappamerri Trough shales compare favorably with US shale gas plays For personal use only Parameter Barnett (TX) Fayetteville Marcellus- Haynesville, Cooper Basin (AR) Appalachian LA Nappamerri (NE USA) Trough Depth (ft) 5400 - 9600‟ 1200 - 7500‟ 1500 - 8000‟ 10000 - 13000‟ 9500 - 11500’ Thickness (f
Slide 16: 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 17: 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 Included 1 million acres of various ExxonMobil – XTO Energy shale gas a
Slide 18: 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 18
Slide 19: 'Big oil' and 'big gas' growth opportunities
‘Big oil’ and ‘big gas’ growth opportunities For personal use only Tanzania Browse Basin Gulf of Papua Canterbury Basin • Emerging oil province: – Beach 100%* – Potential for 200 MMbbl+ discoveries – Exploration planned to commence in 2010 • Emerging oil province: • LNG supply potential from existin
Slide 20: 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 21: For personal use only
i AWIPARS ad) i] ' Ajuo ssn peuosied Jo-
Beach Energy — ASX Small to Mid Caps Conference New York 2010 on 6ix