Slide 1: Investor roadshow - September 2012
For personal use only September 2012 Investor roadshow - March 2012 September 2012 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: Strategic, operational and financial overview
For personal use only Strategic, operational and financial overview September 2012 Slide 3
Slide 4: Company overview
Company overview • ASX 100 company For personal use only • Market Cap ~ $1.6 billion* Financial • FY12 NPAT of $164 million • Cash at 30 June 2012 of $379 million • Nil debt, 2017 convertible note of $150 million • Undrawn $150 million multi-option finance facility • FY12 Operating cash flow $219 mi
Slide 5: Key FY13 operational activities
Key FY13 operational activities For personal use only September 2012 Slide 5
Slide 6: Underlying NPAT
Underlying NPAT Underlying NPAT For personal use only • FY12 net profit after tax (“NPAT”) of $122 million $164 million • Record FY12 underlying NPAT of $122 million, up by 190% on prior year, mainly due to: – Increased sales predominantly driven by production growth – Rise in average realised price
Slide 7: Production
Production • FY12 production of 7.5 MMboe up by Actual and forecast production For personal use only 14% on prior year, mainly due to: 9.0 MMboe – Better operational access following Cooper Basin floods – Successful Western Flank 8.5 MMboe development drilling with quick tie-ins 7.5 MMboe – Increase
Slide 8: 2P reserves
2P reserves • Conventional reserves and resource 2P Reserves – 93 MMboe1 For personal use only approach validated by RISC • Reserves growth continues the recent historic trend 92.8 MMboe • Reserves growth drivers: – SACB JV infill drilling program 77.4 MMboe – Western Flank exploration and appraisal
Slide 9: 1C, 2C and 3C contingent resources
1C, 2C and 3C contingent resources • Unconventional resource independently 2C Contingent resource – 466 MMboe1 For personal use only assessed by DeGolyer and McNaughton • Beach has adopted new SPE Petroleum Reserves Management System guidelines for booking unconventional resource volumes • New appro
Slide 10: FY13 Capital expenditure guidance
FY13 Capital expenditure guidance Forecast FY13 For personal use only FY13 FY13 reserves Forecast Forecast Forecast Seismic additions Capex ($M) Wells 2D – km 3D – km2 MMbbl DEVELOPMENT Cooper Basin – non-SACB JV 50 – 60 15 – 20 – – – Cooper Basin – SACB/SWQ JV 100 – 130 35 – 45 – – 10.0 Internation
Slide 11: The Eastern Australian gas market opportunity
For personal use only The Eastern Australian gas market opportunity September 2012 Slide 11
Slide 12: Strategically located acreage
Strategically located acreage For personal use only Beach is well placed to supply gas to the market for generations to come September 2012 Slide 12
Slide 13: Eastern Australian gas markets are growing
Eastern Australian gas markets are growing • The ‘clean energy future’ is likely to For personal use only incorporate a larger role for natural gas • Current domestic gas demand ~ 715 petajoules (PJ) per annum: – ~ 100 PJ from Cooper Basin • Domestic and LNG project gas demand expected to grow to ~
Slide 14: Cooper Basin a potential supply option for LNG
Cooper Basin a potential supply option for LNG • Cooper Basin gas does not have Gladstone based LNG projects For personal use only the potential challenges that may impact long-term coal seam gas developments in Queensland and New South Wales Benefits of non-CSG supply to LNG proponents include: • F
Slide 15: An unconventional and logical thought process
For personal use only An unconventional and logical thought process September 2012 Slide 15
Slide 16: PEL and ATP 855P
PEL 218 and ATP 855P PEL 218 ~1,600 km2 For personal use only • Beach 100% (Permian) • 2 Tcf of contingent resource booked in the Permian ATP 855P ~1,670 km2 • Beach 60% (operator), Icon Energy 40% • First dedicated shale well in Q3 2012 SACB JV ~7,100 km2 • Beach 20.21%, Santos 66.6% (operator), Or
Slide 17: Unconventional gas program to date
Unconventional gas program to date PEL 218 ~1,600 km2 For personal use only • Beach 100% (Permian) • Four vertical wells drilled • Gas flow from first 2 wells up to ~ 2 MMscfd per well ATP 855P ~1,670 km2 • Beach 60% (operator), Icon Energy 40% • First vertical well being drilled SACB JV ~7,100 km2
Slide 18: Shale and basin centred gas play
Shale and basin centred gas play For personal use only Gas saturation expected through the Permian zone of the Nappamerri Trough September 2012 Slide 18
Slide 19: Beach operated program highlights to date
Beach operated program highlights to date • Holdfast-1 and Encounter-1 gas flows up to For personal use only 2.1 MMscfd, post fracture stimulation • 480 metres of core recovered from both wells assisting technical analysis • Seven stage fracture stimulation for Holdfast-1 and six stage for Encounter
Slide 20: Advantages of Beach's Cooper Basin acreage
Advantages of Beach’s Cooper Basin acreage • Co-operative not competitive land use For personal use only with pastoral owners and stakeholders • Semi-desert country • Relatively flat topography • Well established gas infrastructure • Three cemented casing strings in the first 1,000 metres isolate su
Slide 21: FY13 unconventional drilling program
FY13 unconventional drilling program For personal use only September 2012 Slide 21
Slide 22: Next steps
Next steps • Drill vertical delineation wells to appraise shale and basin centred gas accumulation For personal use only • Design and drill horizontal wells • Expand drilling program with up to six horizontal wells around Holdfast-1 and Encounter-1 to further characterise production potential of sha
Slide 23: SACB/SWQ JV: Significant long-term resource potential
For personal use only SACB/SWQ JV Significant long-term resource potential September 2012 Slide 23
Slide 24: SACB/SWQ JV
SACB/SWQ JV PEL 218 ~1,600 km2 For personal use only • Beach 100% (Permian) • 2 Tcf of contingent resource booked in the Permian ATP 855P ~1,670 km2 • Beach 60% (operator), Icon Energy 40% • First dedicated shale well in Q3 2012 SACB JV ~7,100 km2 • Beach 20.21%, Santos 66.6% (operator), Origin Ener
Slide 25: SACB/SWQ JV
SACB/SWQ JV • Santos operated For personal use only • Equity interests of 20.21% for SACB JV and between 23.2% for SWQ JV • FY12 net production of ~ 4.8 MMboe • Significant land holding of 26,800 km2 (gross) • Cooper Basin cumulative gross production to date of approximately 6 Tcf • Provides access
Slide 26: Resource to reserve conversion
Resource to reserve conversion • Infill drilling with denser For personal use only Infill drilling – 40 vs 200 acre spacing well spacing moving towards 40 acres • More focused fracture stimulation of individual zones • More efficient wellbore hydraulics, resulting in lower abandonment pressures and
Slide 27: Dominant Western Flank acreage position
For personal use only Dominant Western Flank acreage position September 2012 Slide 27
Slide 28: Western Flank – Cooper Basin
Western Flank – Cooper Basin For personal use only 2013 net production target of 9,000 to 10,000 bopd from the Western Flank September 2012 Slide 28
Slide 29: 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 • Quick drill and tie-in periods • High flow rates from wells • Excel
Slide 30: PEL 91
PEL 91 • Beach 40% (operator), Drillsearch 60% For personal use only • Bauer potential recoverable oil of 10+ MMbbls • Production of 800 bopd (gross) from Bauer-1, targeting 2,000 bopd (gross) with trucking • Hanson facility expected to be on-line 2H 2012 • Chiton production potential of 200 bopd (g
Slide 31: PEL 92
PEL 92 • Beach 75% (operator), Cooper Energy 25% For personal use only • Current gross production of 5,000 bopd • Gross production expected back at 6,000 bopd upon completion of Lycium-Moomba trunkline • Butlers-2, -3, -4, Parsons-5, Germein-1 and Elliston-1 all tied-in • Acquisition of 197 km2 Rinc
Slide 32: PRL 15, PEL 104 and PEL 111
PRL 15, PEL 104 and PEL 111 • Beach 40%, Senex Energy 60% (operator) For personal use only • Focus on the Birkhead Formation • Current gross production of 6,000 bopd from Growler and 250 bopd from Snatcher • Recent exploration success with Mustang-1 FY13 capital program • Seven exploration and seven
Slide 33: PEL 106B and PEL 107
PEL 106B and PEL 107 • PEL 106B – Beach 50% (operator), For personal use only Drillsearch 50% • First production in FY12 from the Middleton/ Brownlow production licence • Fiberspar flexible pipeline reduced cost and accelerated pipe laying time • Initial gross flow rates of 25 MMscfd, made up of 15
Slide 34: International - Chasing 'Big Oil' and Rift Basins
For personal use only International - Chasing ‘Big Oil’ and Rift Basins September 2012 Slide 34
Slide 35: Tanzania – Lake Tanganyika South Block
Tanzania – Lake Tanganyika South Block For personal use only A significant acreage position in the prospective East African Rift September 2012 Slide 35
Slide 36: 2D seismic survey
2D seismic survey • Natural oil seeps on Lake Tanganyika For personal use only (7,200 km2) indicate a working petroleum system • Potential for large discoveries (> 200 MMbbl) • Airborne gravity and hi-resolution aeromag data acquired in 2010 • 2,080 km 2D seismic survey completed in August 2012 • Pr
Slide 37: 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 September 2012 Slide 37
Slide 38: Egypt
Egypt For personal use only A balanced portfolio of assets with growing oil production September 2012 Slide 38
Slide 39: North Shadwan concession
North Shadwan concession • Beach 20%, BP 50% (operator), For personal use only Tri Ocean 30% NS 377 and NS 385 • Near shore field NS 377 producing ~ 1,000 bopd (gross) via pipeline to Ras Ghara facility • NS 385 development well expected to spud Q3 2012 • Total oil production expected to build to ~
Slide 40: Abu Sennan concession
Abu Sennan concession • Beach 22%, Kuwait Energy 50% (operator), For personal use only Dover Investments 28% • Four exploration wells successful, with combined total gross flow rate of ~ 12,000 boepd (gross) • New three well exploration program approved: – First well, ASA-1X, spudded in August 2012
Slide 41: Mesaha concession
Mesaha concession • Beach 15%, Melrose 40% For personal use only (operator), Hellenic 30%, Kuwait Energy 15% • The largest concession area in Egypt at 42,700 km2 • Possible rift basin similar to Gulf of Suez • Potential for very large oil fields (>100 MMbbl+) • 2,885 km of regional and infill 2D sei
Slide 42: Appendices
For personal use only Appendices 1. General 2. Other operations September 2012 Slide 42
Slide 43: The Cooper Basin
The Cooper Basin For personal use only September 2012 Slide 43
Slide 44: EIA – United States Gas Production Projection
EIA – United States Gas Production Projection 2007 - Beach identified Australian shale opportunity 2000 2012 For personal use only US Natural Gas Production 1990-2020 US Natural Gas Production 1990-2035 Sources: History: Advanced Resources International, Inc. (ARI). Projections: Source: US Energy In
Slide 45: Things you can find in your own backyard
Things you can find in your own backyard… For personal use only A relatively under-explored part of the Cooper Basin with enormous potential September 2012 Slide 45
Slide 46: Other operations
For personal use only Other operations September 2012 Slide 46
Slide 47: Other unconventional opportunities
Other unconventional opportunities Otway Basin • Conventional plays proven – gas, • Significant acreage positions in other (Beach 35-67%) condensate and oil For personal use only prospective basins • Moderate to high TOC’s • Further potential for gas and liquids • Gas and liquids prone • Mature and
Slide 48: Bonaparte Basin
Bonaparte Basin • Beach earning up to 90% of For personal use only onshore and up to 55% 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 in the f
Slide 49: Otway and Gippsland basins
Otway and Gippsland basins Otway gas and liquids For personal use only • Beach 35-67% • Conventional plays proven – gas, condensate and oil discoveries • Casterton main source rock, Map with troughs shown and with most attractive permits outlines unconventional targets – Moderate to high TOC’s – Gas
Slide 50: 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.