Beach Energy Limited · ASX:BPT
Beach Energy — Non-Deal Roadshow (March 2013)
48 slides from Beach Energy's roadshow presentation, Mar 4, 2013
Slide 1: Investor roadshow - March 2013
For personal use only March 2013 Investor roadshow - March 2012 March 2013 Beach Energy Limited Slide 1
Slide 2: Compliance statements and Disclaimer
Compliance statements Disclaimer For personal use only • 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: General overview
For personal use only General overview March 2013 Slide 3
Slide 4: Company overview
Company overview • ASX 100 oil and gas explorer and producer, market capitalisation ~A$1.8 billion For personal use only • Strong balance sheet – cash of A$343 million (at 31 December 2012) and undrawn debt facility of A$150 million • 1H FY13: underlying NPAT $61 million, operating cash flow $172 mi
Slide 5: Key FY13 operational activities
Key FY13 operational activities For personal use only March 2013 Slide 5
Slide 6: Actual and forecast production
Actual and forecast production For personal use only 8.5 MMboe 8.1 MMboe 7.5 MMboe 6.6 MMboe Gas* 4.3-4.5 MMboe Gas* (25-26 PJe) 4.8 MMboe Gas* (28 PJe) 4.5 MMboe (26 PJe) Oil Oil 3.8-4.0 MMbbl Oil 2.7 MMbbl 2.1 MMbbl * Gas and gas liquids FY13 production guidance underpinned by Western Flank oil fl
Slide 7: 2P reserves and 2C contingent resources
2P reserves and 2C contingent resources 2P: 93 MMboe 2P and 2C: 559 MMboe For personal use only 448 MMboe 73 MMboe 93 MMboe 20 MMboe 18 MMboe Oil Gas and Gas Liquids 2P Reserves Gas and Gas Liquids Oil Large reserve and resource base driving production growth profile March 2013 Slide 7
Slide 8: FY13 Capital expenditure guidance
FY13 Capital expenditure guidance Forecast 1H FY13 FY13 FY13 FY13 reserves For personal use only Actuals Forecast Forecast Forecast Seismic additions ($M) ($M) (1) Wells 2D – km 3D – km2 MMboe DEVELOPMENT Cooper Basin – non-SACB JV 37 50 – 55 12 – 15 – – – Cooper Basin – SACB/SWQ JV 79 140 – 145 45
Slide 9: Eastern Australian gas markets are growing
Eastern Australian gas markets are growing Existing domestic east coast contracts Projected east coast total demand For personal use only Source: Core Energy Group, July 2012 • The ‘clean energy future’ is likely to incorporate a larger role for natural gas • By 2025 gas demand for domestic market a
Slide 10: Beach projected gas opportunities
Beach projected gas opportunities For personal use only Beach operated - PEL 106B - unconventional SACB JV/SWQ JV - conventional - unconventional New gas pricing paradigm ($6-9/GJ) • Legacy gas contracts expiring over the next couple of years • Horizon* contract relates to Beach’s equity share of SA
Slide 11: PEL and ATP farm-out to Chevron
For personal use only PEL 218 and ATP 855 farm-out to Chevron March 2013 Slide 11
Slide 12: PEL and ATP farm-out to Chevron
PEL 218 and ATP 855 farm-out to Chevron For personal use only World class JV partner reinforces SA and Qld Cooper Basin gas potential March 2013 Slide 12
Slide 13: Background and rationale
Background and rationale • Beach has led the way in Nappamerri Trough unconventional exploration For personal use only – Early identification of the potential of PEL 218 and ATP 855 – Initial success with off-structure exploration wells and flow tests • Significant advancement in the program – PEL 2
Slide 14: Transaction highlights and overview
Transaction highlights and overview • The introduction of a world class joint venture partner with: For personal use only – Global experience and leading technical capability – A long and successful history in Australian exploration and gas development • Beach to transfer up to 60% of its interests
Slide 15: Transaction consideration summary
Transaction consideration summary • Subject to joint venture approvals, the key work program elements envisaged across the two permits For personal use only involve an initial exploration program to be followed by pilot production programs PEL 218 – potential payments ATP 855 – potential payments St
Slide 16: Why Chevron?
Why Chevron? • Unconventional resource experience For personal use only – USA and Canada (Duvernay, Marcellus, Utica, Wolfcamp) – Poland, Romania, China, Lithuania and Argentina – Exposure to >7 million net acres • Technical capability and gas development expertise • Outstanding exploration track re
Slide 17: Cooper Basin Unconventional exploration
For personal use only Cooper Basin Unconventional exploration March 2013 Slide 17
Slide 18: Unconventional acreage and timeline
Unconventional acreage and timeline For personal use only March 2013 Slide 18
Slide 19: Unconventional gas program
Unconventional gas program PEL 218 ~1,600 km2 For personal use only • Beach 100% (Permian) • Six vertical wells drilled, two being drilled (one horizontal) • Gas flow from first three wells in excess of 2 MMscfd per well ATP 855 ~1,670 km2 • Beach 60% (operator), Icon Energy 40% • Halifax-1 initial
Slide 20: Program highlights to date
Program highlights to date • Holdfast-1, Encounter-1 proved up the shale For personal use only play with flow rates at up to 2.1 MMscfd • Moonta-1 proved up the basin centred gas concept throughout the Patchawarra, with gas flow rates at up to 2.6 MMscfd • Holdfast-2 horizontal well drilling ahead l
Slide 21: Moomba-191
Moomba-191 • Initial flow rate > 3 MMscfd For personal use only • Average flow rate over first month ~2.7 MMscfd, and ~2.5 MMscfd at year end • Early stage recovery estimates are > 1.5 bcf • Indicates continuation of unconventional gas trending West of PEL 218 in the Nappamerri Trough Moomba-191 gas
Slide 22: Fracture stimulation stages
Fracture stimulation stages For personal use only March 2013 Slide 22
Slide 23: Cooper Basin Western Flank
For personal use only Cooper Basin Western Flank March 2013 Slide 23
Slide 24: Western Flank oil
Western Flank oil Western Flank oil is a core contributor For personal use only to Beach due to: • Sales in Brent • High net back per barrel of ~ A$85* (including opex, royalties and transportation costs) • Strong equity positions in significant and prospective acreage • Quick drill and tie-in perio
Slide 25: Investment in infrastructure
Investment in infrastructure For personal use only Net production of 9,000 to 10,000 bopd from the Western Flank expected in Q2 2013 March 2013 Slide 25
Slide 26: Western Flank exploration
For personal use only Cumulative EUR – MMbbl 10 15 20 25 0 5 Sellicks 1 Christies 1 Carrickalinga 1 Brighton 1 Silver Sands 1 Boomer 1 Callawonga 1 Snowden 1 Somerton 1 Sheringa 1 Parsons 1 Ballaparudda 1 Murripi 1 Gunyah 1 Perlubie 1 Tumby 1 Butlers 1 Perlubie South 1 Cheetima 1 Murninnie 1 Western
Slide 27: PEL (Beach 40% operator)
PEL 91 • Beach 40% (operator), Drillsearch 60% For personal use only • Bauer potential recoverable oil of 10+ MMbbls • Current production of ~3,200 bopd (gross) from two wells • Targeting ~10,000 bopd (gross) in Q2 2013 when Bauer-Lycium flowline operational • Seven wells drilled in FY13 to date: –
Slide 28: PEL (Beach 75% operator)
PEL 92 • Beach 75% (operator), Cooper Energy 25% For personal use only • Current gross production of ~5,200 bopd • Gross production expected to reach ~7,000 bopd in Q2 2013 • Rincon 3D to delineate the Rincon discovery and evaluate additional exploration prospects • Four wells drilled in FY13 to dat
Slide 29: PRL 15, PEL and PEL
PRL 15, PEL 104 and PEL 111 • Beach 40%, Senex Energy 60% (operator) • Focus on the Birkhead formation For personal use only • Current gross production of ~3,500 bopd from Growler and ~600 bopd from Snatcher • Eight wells drilled in FY13 to date: – Five appraisal development wells drilled in FY13, S
Slide 30: PEL 106B and PEL
PEL 106B and PEL 107 • PEL 106B – Beach 50% (operator), Drillsearch 50% For personal use only • First production in FY12 from the Middleton/Brownlow production licence • Initial gross flow rates of 25 MMscfd (15 TJd sales gas and 325 bbld LPG and condensate) • Production under current contract shut-
Slide 31: SACB JV & SWQ JV's and Infrastructure
For personal use only SACB JV & SWQ JV’s and Infrastructure March 2013 Slide 31
Slide 32: SACB JV and SWQ JV's
SACB JV and SWQ JV’s • Significant equity interest in the For personal use only SACB JV (Beach 20.21%) and SWQ JV’s (Beach 20-40%) • Area covered by JV’s ~26,800 km2 • JV’s equity interests include: – Moomba and Ballera processing facilities – All gathering systems within JV acreage – Ballera to Moo
Slide 33: SACB JV infill drilling program
SACB JV infill drilling program Resource to reserve conversion drivers: Infill drilling – 40 vs 200 acre spacing For personal use only • Infill drilling with denser well spacing moving towards 40 acres • More focused fracture stimulation of individual zones • More efficient wellbore hydraulics, resu
Slide 34: Other Australia: Bonaparte Basin, Otway Basin
For personal use only Other Australia Bonaparte Basin Otway Basin March 2013 Slide 34
Slide 35: Bonaparte Basin
Bonaparte Basin • Beach earning up to 90% of For personal use only onshore and up to 50% of offshore areas • Underexplored to date due to lack of quality modern seismic • Conventional and deep unconventional targets • Highly prospective as a result of: – Working petroleum systems identified – Oil se
Slide 36: Otway Basin - PEL
Otway Basin - PEL 495 • Beach paying 70% of For personal use only Sawpit-2 well costs to earn 35% • Spudded 19 February 2013 • Located in the Penola Trough/Otway Basin • Two main targets: – Oil in the Sawpit Sandstone – Unconventional potential of the Lower Sawpit Shale and Casterton Formation • Jac
Slide 37: International assets: Tanzania, Egypt, Romania
For personal use only International assets Tanzania Egypt Romania March 2013 Slide 37
Slide 38: Tanzania – Lake Tanganyika South Block
Tanzania – Lake Tanganyika South Block For personal use only A significant acreage position in the prospective East African Rift March 2013 Slide 38
Slide 39: 2D seismic survey
2D seismic survey • Natural oil seeps in Lake Tanganyika For personal use only indicate a working petroleum system • South block area ~7,200 km2 • Potential for large discoveries (> 200 MMbbl) • Airborne gravity and hi-resolution aeromag data acquired in 2010 • 2,080 kilometre 2D seismic survey comp
Slide 40: Lake Tanganyika South Block potential play types
Lake Tanganyika South Block potential play types For personal use only Potential targets from recently acquired 2D seismic, red = gas, green = oil Direct hydrocarbon indicators consistent with an active petroleum system March 2013 Slide 40
Slide 41: Egypt
Egypt For personal use only A balanced portfolio of assets with growing oil production March 2013 Slide 41
Slide 42: North Shadwan concession
North Shadwan concession • Beach 20%, BP 50% (operator), Tri For personal use only Ocean 30% • On-shore to off-shore developments • NS 377-3 intersected 145 metre oil column and cased as first production well for field • NS 377-5 intersected 107 metre oil column in better quality reservoir and cased
Slide 43: Abu Sennan concession
Abu Sennan concession • Beach 22%, Kuwait Energy 50% For personal use only (operator), Dover Investments 28% • Four exploration wells successful • New three well exploration program approved: – First well, ASA-ST2, reached TD of 3,576 metres – Second well, ASC-1X drilling ahead at ~3,300 metres Exte
Slide 44: Mesaha concession
Mesaha concession For personal use only • Beach 15%, Melrose 40% (operator), Hellenic 30%, Kuwait Energy 15% • The largest concession area in Egypt at 42,700 km2 • Potential for large oil fields (>100 MMbbl+) • 2,885 kilometres of regional and infill 2D seismic acquired and interpreted • First explo
Slide 45: EGPC international bid round 2011
EGPC international bid round 2011 • El Qa’a Plain bidding group: Beach 25%, For personal use only Dana Petroleum (operator) 37.5% and Petroceltic 37.5% • Total area of 1,823 km2 • 1,519 kilometres of 2D seismic by BP and Conoco in early ‘80s • 11 wells drilled between 1965 and 1984 (two with oil sho
Slide 46: Romania – Est Cobalcescu block
Romania – Est Cobalcesu block • Post Beach farm-in: Beach 30%, For personal use only Melrose 40% (operator), Petromar 30% • Est Cobalcescu block is 1,000 km2, with 3D seismic over block being processed • Water depth <100 metres • Potential for both oil and gas plays • Significant leads identified on
Slide 47: ExxonMobil Domino-1 discovery
ExxonMobil Domino-1 discovery N Est Cobalcescu Domino 1 S For personal use only N S March 2013 Slide 47
Slide 48: Contact Information
Contact Information 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.jamieson@beachenergy.com.