Beach Energy Limited · ASX:BPT
Beach Energy — Non-Deal Roadshow (June 2014)
57 slides from Beach Energy's roadshow presentation, Jun 23, 2014
Slide 1: Non deal roadshow 23-27 June 2014
For personal use only Non deal roadshow 23-27 June 2014 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 be
Slide 3: General overview
For personal use only General overview 3
Slide 4: Key facts about Beach
Key facts about Beach For personal use only • ASX 100 company with a market capitalisation of ~A$2.2 billion1 • Largest Australian onshore oil producer • Strong balance sheet with cash of $428 million2 • Undrawn secured debt facility of $300 million • FY14 sales revenue on track for $1 billion Fully
Slide 5: Cooper Basin acreage
Cooper Basin acreage For personal use only Prolific gross acreage position of over 56,000 km2 generating 99% of current production 5
Slide 6: Looking forward....
Looking forward…. For personal use only Beach targeting the following in the next 1-2 years: • Continued investment in growth of conventional Cooper Basin gas production capacity • First exposure to oil linked domestic gas pricing and improved margins • New oil fields and facilities being brought on
Slide 7: FY14 actual and forecast production
FY14 actual and forecast production For personal use only • Production of 7.3 MMboe to March 2014 9.6 MMboe to • Production mix: 46% gas and gas liquids, Gas* 1.0–1.3 MMboe 9.2 MMboe (6-7 PJe) 54% oil • Production anticipated at the upper end 8.0 MMboe 7.5 MMboe of 9.2 – 9.6 MMboe guidance 6.6 MMboe
Slide 8: FY14 Revised capital expenditure guidance
FY14 Revised capital expenditure guidance For personal use only Seismic Capex Wells ($ million) 2D – km 3D – km2 DEVELOPMENT Cooper Basin – non-SACB JV 55 – 60 10 – 13 – – Cooper Basin – SACB/SWQ JV 200 – 220 50 – – International 10 4 – – Total Development 265 – 290 Up to 67 – – EXPLORATION Cooper B
Slide 9: Reserves and contingent resources
Reserves and contingent resources For personal use only 2P: 93 MMboe 2P and 2C: 542 MMboe Gas and gas liquids Unconventional 71 MMboe Gas and gas liquids 2P reserves 319 MMboe 93 MMboe Oil 22 MMbbl Conventional Gas and gas liquids 113 MMboe Oil 17 MMbbl Large reserve and resource base driving produc
Slide 10: Australian onshore oil production
Australian onshore oil production For personal use only Australia’s largest onshore oil producer, with a strong inventory of Cooper Basin oil discoveries coming on-line in FY15 Sources: Recent half year and quarterly publicly available company information 10
Slide 11: Growing corporate activity
Growing corporate activity For personal use only 2011 2012 2013 2014 YTD 2,000 1,840 1,500 Equity Value (A$M) 1,000 924 535 463 500 212 107 118 104 100 142 160 27 54 - Target Eastern Star Gas Bow EnergyEureka EnergyAcer Energy Texon Petroleum Aurora Oil & Gas Nexus Energy WestSide Corporation Horizo
Slide 12: Eastern Australian gas market
For personal use only Eastern Australian gas market 12
Slide 13: Australian east coast gas
Australian east coast gas For personal use only Gas price drivers: Australian east coast gas is one of the • LNG export from Gladstone only commodities globally currently accessing Asian markets increasing in price • Higher upstream costs for exploration and development • Regulatory matters limiting
Slide 14: Eastern Australian gas markets
Eastern Australian gas markets For personal use only • Strong predicted growth in Eastern Australian gas and Asian LNG demand • Gladstone based export LNG projects have transformed the east coast gas market • Projected gas supply is ‘tight’ and demand strong • The bulk of ‘non-LNG’ demand is yet to
Slide 15: Prolific gas acreage strategically located
Prolific gas acreage strategically located For personal use only • Quality acreage footprints accessing multiple markets • Prime unconventional gas acreage with transformational potential • Gas liquids potential in most basins Multi-basin portfolio to feed eastern and northern Australian markets 15
Slide 16: Upstream and downstream dynamics
Upstream and downstream dynamics For personal use only • ‘Equity’ molecules to ‘equity’ projects • Suppliers creating new markets via downstream investments • Vertical integration driven by both domestic and export opportunities • Depending on volume and deliverability, supply likely to under- write
Slide 17: Western Flank Cooper Basin
For personal use only Western Flank Cooper Basin 17
Slide 18: Western Flank
Western Flank For personal use only • High net back for oil and wet gas • Quick drill and tie-in, high flow rates • Excellent geological understanding • Established infrastructure – 250 kilometres of flowlines – 10 facilities and five trucking points – 40 oil wells on production • 1,200 km2 of 3D se
Slide 19: Western Flank oil migration path
Western Flank oil migration path For personal use only 19
Slide 20: PEL 91/106 (Western Flank)
PEL 91 For personal use only • Beach 40% and operator, Drillsearch 60% • Current gross production ~11,500 bopd, with further wells to be tied-in • Successful Bauer-12 and Pennington-2 appraisal wells have increased reserves • Congony, Sceale and Kalladeina facility expected on-line in 2H 2014 • Succ
Slide 21: The Bauer oil field
The Bauer oil field For personal use only • Bauer-12 appraisal well intersected a nine metre oil column: – Four metres of McKinlay Member – Five metres of Namur Sandstone – Added 2.5 MMbbl (gross) of 2P reserves • Currently producing from eight wells • Bauer-9, -10 and -11 online • Bauer facility ex
Slide 22: Pennington field appraisal
PEL 91 – Pennington field appraisal For personal use only • Beach 40% and operator, Drillsearch 60% • 3D seismic coverage with the Aquillus and Caseolus surveys • Pennington-1 oil discovery: – 13 metres McKinlay/Namur oil column Pennington North-1 – Six metre mid-Namur oil column – Oil shows in the
Slide 23: PEL 92
PEL 92 For personal use only • Beach 75% and operator, Cooper Energy 25% • Current gross production ~4,500 bopd • Fishery-1 exploration well to spud imminently • One further exploration well planned from FY14 program • Interpretation of Irus and Caseolus 3D seismic data ongoing • First wells expecte
Slide 24: PEL 104 and PEL 111
PEL 104 and PEL 111 For personal use only • Beach 40%, Senex 60% and operator • Focus on the Birkhead Formation • Gross production of ~4,000 bopd from Growler and Snatcher fields • Further appraisal drilling at Spitfire and Mustang proposed • Currently drilling ahead at Tornado-1 • Exploration prosp
Slide 25: PEL 218 Cooper Basin gas
PEL 106 For personal use only • Beach 50% and operator, Drillsearch 50% • Commercial discussions successful in establishing extended gas sales to March 2016 • Liquids rich Canunda field operational since July 2013 • Gross flow rate of ~10 MMscfd and ~500 bbls per day LPG and condensate • Four explor
Slide 26: SACB JV and SWQ JVs Conventional gas
For personal use only SACB JV and SWQ JVs Conventional gas 26
Slide 27: SACB JV and SWQ JVs
SACB JV and SWQ JVs For personal use only • Significant acreage with substantial reserves base • 20.21% in the South Australian Cooper Basin Joint Venture (SACB JV) and 20-40% in the South West Queensland JVs (SWQ JVs) • Gross area covered by various joint ventures ~26,800 km2 (~6.6 million acres) •
Slide 28: Moomba processing facility
Moomba processing facility For personal use only • Strategically located expandable facility • Current daily capacity approximately: – 300 TJ gas – 35 kbbl oil/condensate – 600 tonnes LPG • Substantial gas storage system with capacity ~70 PJ • Gas supplied directly into New South Wales, Queensland a
Slide 29: SACB JV conventional gas
SACB JV conventional gas For personal use only • Five rigs operating • Focus on cost savings through multi-well pad drilling • SIMOPS approach to fracture stimulation • Targeted 30% capacity growth by 2015, leading to a step-change in cost reductions • Maintenance strategies successfully delivering
Slide 30: Unconventional gas Cooper Basin
For personal use only Unconventional gas Cooper Basin 30
Slide 31: Unconventional transaction activity
Unconventional transaction activity For personal use only McArthur Basin 2011 2012 2013 2014 Beetaloo Basin 600 Canning Basin Almost $2 billion 500 Southern committed to Gross consideration (A$M) Georgina Basin new Australian 400 Cooper- unconventional joint Eromanga Basin 300 ventures since 2011 Am
Slide 32: Unconventional positioning
Unconventional positioning For personal use only • Strategically targeted three key basins for unconventional acreage • Cooper Basin activity: – Nappamerri Trough Natural Gas with Chevron and Icon – SACB JV unconventional REM and BCG plays • Otway and Bonaparte Basins targeting gas and gas liquids •
Slide 33: The keys to unconventional success
The keys to unconventional success For personal use only • Well profiles the key focus on all projects • Uncovering ‘sweet spots’ with focused activity around them • Process improvements and technology to drive efficiencies • Costs to be driven down by efficiencies and scale • Gas pricing trending u
Slide 34: SACB JV Unconventional gas
For personal use only SACB JV Unconventional gas 34
Slide 35: SACB JV unconventional program
SACB JV unconventional program For personal use only 35
Slide 36: REM play
REM play For personal use only • Targeting the Roseneath Shale, Epsilon Formation, Murteree Shale and Patchawarra Formation • Moomba-191 and -194 tied-in and producing • Roswell-1 and Moomba-192 vertical wells fracture stimulated and flow tested • Roswell-2H and Moomba-193H fractured stimulated and
Slide 37: BCG play
BCG play For personal use only • Gaschnitz-1 ST1 vertical well: – Seven zone stimulation, produced at ~1 MMscfd – Shut-in, awaiting completion – 2014 follow up program of two deep wells and up to four shallow vertical wells – Pilot production if fracture stimulation results are promising – Connectio
Slide 38: Nappamerri Trough Natural Gas
For personal use only Nappamerri Trough Natural Gas 38
Slide 39: Nappamerri Trough Natural Gas
Nappamerri Trough Natural Gas For personal use only • A staged and methodical exploration and appraisal program • Delineation of a significant untapped resource • Multiple formations present • Aerially extensive with permits covering more than 800,000 acres • In excess of 1,000 metres of gas saturat
Slide 40: NTNG wells
For personal use only NTNG wells 40
Slide 41: Retention licences granted
Retention licences granted For personal use only 41
Slide 42: Exploration concept
Exploration concept For personal use only 42
Slide 43: Exploration and appraisal cross section
Exploration and appraisal cross section For personal use only Note: Well locations are approximate only and may have been shifted to show their correct structural position on the cross section 43
Slide 44: Other Australia
For personal use only Other Australia 44
Slide 45: Otway Basin
Otway Basin For personal use only • Building a portfolio of onshore and offshore gas assets • Two onshore wells recently drilled, with conventional and unconventional targets identified • Further conventional onshore drilling anticipated • Joint venture with 3D Oil recently announced in the T/49P bl
Slide 46: Cross section of PELs
Cross section of PELs 494 and 495 For personal use only 46
Slide 47: Bonaparte Basin
Bonaparte Basin For personal use only • EP 126, 138 (Beach earning up to 90%) • ~6,500 km2 high resolution airborne gravity and magnetic survey acquired, processed and interpreted • Cullen-1 coring at ~1,600 metres • Undeveloped Weaber gas field evidence of hydrocarbon presence Underexplored with co
Slide 48: Cooper Basin – Eastern Flank
Cooper Basin – Eastern Flank For personal use only • ATP 732 (Beach earning 50%, Bengal 50%) • Large underexlored permit • Located between the Jackson (~50 MMbbl of oil produced) and the Kenmore/Bodalla (~20 MMbbl of oil produced) fields • ~300 km2 Nassarius 3D seismic survey completed • Targeting c
Slide 49: International
For personal use only International 49
Slide 50: International operations
International operations For personal use only Romania • Provides long-term growth • Offshore oil and gas options • Favourable fiscal regime • Targeted and disciplined approach to key attributes: Egypt – Technical • Production growing – Commercial • Exploration upside • Recent major discovery – Risk
Slide 51: Egypt
Egypt For personal use only Country status • Recent history of political volatility and unrest • Business as usual from an operations standpoint Growth potential • Targeting material oil prospects • Abu Sennan success within the El Salmiya field Beach value add • Sharing of geological and operationa
Slide 52: Tanzania – Lake Tanganyika South Block
Tanzania – Lake Tanganyika South Block For personal use only • Beach 100% • Block area ~7,200 km2 • Natural oil seeps indicate a working petroleum system • 2,080 kilometre 2D seismic survey completed in August 2012 • Extensive structuring confirmed, similar to Lake Albert in Uganda • Indications of
Slide 53: Romania – Est Cobalcescu block
Romania – Est Cobalcescu block For personal use only • Beach 30%, PetroCeltic 40% and operator, Petromar 30% • ~1,000 km2 with 3D seismic coverage • Water depth <100 metres • ExxonMobil deep water block Domino discovery • A further exploration well planned in the next 12 months Newly available acrea
Slide 54: Appendices
For personal use only Appendices 54
Slide 55: Chevron transaction summary
Chevron transaction summary For personal use only • Subject to joint venture approvals, the key work program elements envisaged across the two permits involve an initial exploration program to be followed by pilot production programs PEL 218 – potential payments ATP 855 – potential payments Stage 1
Slide 56: SACB JV unconventional and infill
SACB JV unconventional and infill For personal use only Moomba wells - nomenclature Current Well Name Previous Well Name Purpose Status Roswell 1 Roswell 1 Vc 50 coal, REM, Microseismic Flowing from Vc 50 post frac Roswell 2 Roswell 2 Horizontal Roseneath Shale 1000 -1500' Spud 12 Oct Moomba 192 Aur
Slide 57: Contact Information
Contact Information For personal use only Head office 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.