Beach Energy Limited · ASX:BPT

Beach Energy — Investor Presentation (May 2009)

34 slides from Beach Energy's investor presentation, May 19, 2009

  1. Slide 1: Energy resources – oil & gas – the most basic necessity

    For personal use only May 2009 Energy resources – and oil & gas, in particular – are the most basic necessity for economic activity

  2. Slide 2: Disclaimer & Important Notice

    DISCLAIMER & IMPORTANT NOTICE 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 be

  3. Slide 3: A focus on fundamentals

    For personal use only A focus on fundamentals:  Earnings, cash flow & gearing  Growth strategy  Long term production and reserves  A balanced exploration portfolio  Thinking ahead of the pack

  4. Slide 4: For personal use only

    For personal use only

  5. Slide 5: For personal use only

    For personal use only

  6. Slide 6: Beach … A Diversified Energy Provider

    For personal use only LPG Gas Gas Liquids Processing Shale Pipelines & and other Export gas resources Facilities Conventional Natural Gas Geothermal Power Beach … A Diversified Energy Provider Greenhouse Crude Oil Gas Sequestration

  7. Slide 7: For personal use only

    For personal use only West Flank East Flank Offshore Surat Basin Cooper Cooper Cooper Gippsland (Tipton Basin JV (Bodalla (PEL 92) (BMG fields) West CSG) (Delhi) Block) 2001 2002 2004 2006 2006 Farmin cost of $35 Acquired for ~$530 Found 8 mmb to Initial farmin cost of million for 40% million for 65

  8. Slide 8: A robust production base

    For personal use only 1. Cooper oil & gas • Record production of both oil & gas • Currently 27,200 boe per day A ROBUST PRODUCTION BASE CONSISTING OF (40% oil & 60% gas) net to BPT … • Very large contingent gas resource of ~262 mmboe MORE THAN 1200 WELLS PRODUCING FROM • Substantial infrastructure M

  9. Slide 9: Production

    Production For personal use only  Record half year  5 MMBoe 10 Million barrels of oil equivalent March Quarter production: 9  ~27,000 barrels of oil 8 equivalent per day (average) 7 10,342 barrels of oil per day 6 (average) 5  85 million cubic feet of gas per day (average) 4 2.45 million barr

  10. Slide 10: Revenue split in 1H FY09

    For personal use only REVENUE SPLIT IN 1H FY09 COMMENTS  Sales revenue up 34% to$334 million in 1H FY09:  Sales up 48%, excluding third party purchases  Oil provides ~60% of petroleum revenue:  Oil production up 30% and  AUD realised oil price up 6% to $108/bbl for 1H FY09  Gas / gas-liquids p

  11. Slide 11: For personal use only

    For personal use only • For 1H FY09: • NPAT up 117% to $127.5 million • Operating cash flow – 31% increase to $68 million • Cash position of $139 million at 31 December 2009 - Net Debt gearing of 4.6% • Subsequent events: • Sale of Tipton West • Continued dividend stream – 0.75 cents per share based

  12. Slide 12: Oil prices are lower?

    Oil prices are lower? For personal use only Remember when we thought that US$20 per barrel was good … or if it would ever reach US$30 per barrel?

  13. Slide 13: Average Oil Price Received; Oil & Gas Revenue

    use only Average Oil Price Received Oil & Gas Revenue 120 600 For personal 100 500 80 $A/bbl $ million 400 60 300 40 200 20 100 0 0 FY05 FY06 FY07 FY08 FY09(f) FY05 FY06 FY07 FY08 FY09(f)

  14. Slide 14: An important asset with new long term life potential

    For personal use only An important asset with new long term life potential

  15. Slide 15: Beach's Cooper Basin

    Beach’s Cooper Basin For personal use only  Reserves 238 PJ & 15 MMbbl (63 Mmboe at 31 Dec 08)  March Quarter production:  Oil 7,875 bopd  Gas 73 TJ / day  ~20,000 boepd  Forecast Annual Production (FY09)  5.9 MMboe of Gas & Gas Liquids  2.6 MMbbl of oil  ( ~85% of total BPT prodn) Operati

  16. Slide 16: Reserves and Production

    Million Boe use only Reserves Production 10.0 70 For personal 60 12 8.0 1.6 2.0 2.6 15 16 50 6.0 Oil 40 4.0 6.5 6.5 Gas 30 51 48 5.9 44 20 2.0 10 0.0 0 FY 07 FY 08 FY 09 FY 07 FY 08 FY 09 (Forecast) (Forecast) Note: 262 million boe contingent resource

  17. Slide 17: Cooper Basin Substantial Reserve & Resource Base

    Cooper Basin Substantial Reserve & Resource Base Reserves & Resources Million boe — net to Beach = Oil Reserves 179 = Conventional Gas Reserves 83 Conventional Gas Resources Unconventional Gas Resources

  18. Slide 18: The Western Flank: New Oil Fairway

    The Western Flank: = New Oil Fairway PEL 91 ) | ~* e os PEL 92° iy | sey 1 2006 Neritfs 3D _¢alawopoa PERMIT Ke f— LocaTion maP | : COOPER BASIN i e ca ®Sellicks i Paksonst Christies J | Silver Sands re | NG PEL 107 Star z te - or,

  19. Slide 19: High Profit Oil Callawonga-Parsons Area

    For personal use only HIGH PROFIT OIL CALLAWONGA-PARSONS AREA • >8 mmb discovered to date • 50% Exploration Success Rate • F&D Cost ~$10/bbl (7 yr average) • Production Costs ~$25/bbl • 6 well program commencing May

  20. Slide 20: A large unconventional gas resource

    For personal use only A large unconventional gas  Three main sources in addition to further conventional resource to meet increasing gas gas in areas adjacent to Moomba: demand while reducing carbon  Shale gas emissions overall  Tight gas  Deep coal gas  An indication of the future:  Shale gas

  21. Slide 21: For personal use only

    For personal use only  North Shadwan Concession  Beach 20%  Operator – BP  Southeast July Concession Beach 20%  Operator Santos/Dana  South July -1 P&A  Further drilling planned FY10

  22. Slide 22: For personal use only

    For personal use only  “Nearshore” Fields (377 & 385) to be developed Fy10  Net Reserves ~ 2mmb  First Oil late 2009  CAPEX ~$10 million (net)  Teen-1 to be drilled 2H 2009

  23. Slide 23: For personal use only

    For personal use only  Burtocal discovered 2007  Burtocal-2 resulted in oil column intersection, but further drilling required to prove commerciality/development plan  Further drilling in 3rd/4th quarter to assess adjacent fault blocks  Potential 5 mmb (net to Beach)

  24. Slide 24: Surat Basin Coal Seam Gas

    Surat Basin Coal Seam Gas For personal use only Tipton West – Coal Seam Gas  2P Reserves 467 PJ  3P Reserves 1,115 PJ  Sale to Arrow Energy announced  Cash $260 million  AOE Shares $70 million  Deferred Payments $70  Total up to $400 million  Completion expected in May  Profit of $276 milli

  25. Slide 25: For personal use only

    For personal use only  Beach 30%  March quarter production averaged 2,465 bopd (net)  Remaining Oil Reserve ~18 MMbbl (5 MMbbl net to Beach)  Gas Resource - 249 PJ  1 well planned for FY10

  26. Slide 26: Geothermal Exploration – Paralana Project

    Geothermal Exploration – Paralana Project For personal use only  Beach 21%  Paralana-2 well to be drilled mid 2009 to demonstrate geothermal energy resource and assess permeability  Paralana-3 (contingent) in 2010 to assess circulation capacity  If successful, next phase is to install 7.5 Mw pla

  27. Slide 27: Electricity Demand for SA NEM

    Electricity Demand for SA NEM = Available MW 4,500 4,000 3,500 2,500 2,000 1,500 1,000 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

  28. Slide 28: Exploration

    Exploration For personal use only Objective: a balanced portfolio •60:30:10 (low: moderate:high risk) •Exploration in the vicinity of proven production generally regarded as constituting low to moderate risk •Higher risk categories are typically in frontier areas (e.g., Spain, Albania, Tanzania), wh

  29. Slide 29: For personal use only

    For personal use only • Targeted Risk Balance • 60% low risk • 40% medium risk • 10% high risk • Forecast average annual expenditure ~$50 million/year • Cooper $25 million • Other Australia $10 million • International $15 million

  30. Slide 30: For personal use only

    For personal use only  Cooper 50 wells (50% oil / 50% gas) Offshore Australia 2 wells (Bass & Browse)  Egypt 7 wells (4 expn / 3 devl’t)  Geothermal 2 wells  Key Exploration Drilling  PEL 92 (6 wells) May – September  Spikey Beach-1 September (?)  North Shadwan (3 wells) Sept - Nov

  31. Slide 31: Reserves

    Reserves Reserves Growth For personal use only 150 100 Surat Gas MMboe  Reserves (at 31 December )  20 MMbbl of Oil Cooper Gas 50  222 PJ of Conventional Gas Oil 462 PJ of CSG  7 MMboe of Gas Liquids 0 FY06 FY08 FY09 FY07 H1  Total 144 MMboe  Contingent Resources  Cooper Basin 262 MMboe Rese

  32. Slide 32: Reserves Outlook

    Reserves Outlook For personal use only 160  Tipton sale will 140 reduce reserve base by 76 mmboe 120 MMboe 100  Partially offset by CSG 80 Gas increased Cooper & Egypt oil reserves 60 Oil 40  But …….. 20 0 FY06 FY07 FY08 FY09 (f)

  33. Slide 33: Reserves Outlook

    Reserves Outlook For personal use only  278 MMboe in contingent gas 300 resources 250  Cooper Gas Resource far BMG Gas exceeds the Tipton CSG 200 Unconv. Gas volume 150 Conv. Gas  Tipton 76 Mmboe  Cooper 83 Mmboe CSG (conv.) & 179 (unconv.) 100 Gas Oil 50 0 FY06 FY07 FY08 FY09 (f) Gas Resource

  34. Slide 34: For personal use only

    BEACH 7| PETROLEUM Ajuo esn jeuosied J

Beach Energy — Investor Presentation (May 2009) on 6ix