Beach Energy Limited · ASX:BPT
Beach Energy — Beach Petroleum — The Good Oil Conference 2007
44 slides from Beach Energy's conference presentation, Sep 5, 2007
Slide 1: The Good Oil Conference
Beach Petroleum Limited For personal use only The Good Oil Conference 5 September 2007
Slide 2: Agenda
For personal use only 1 Corporate Overview 2 Key Revenue Earning Projects 3 Strategy for Growth 4 Outlook
Slide 3: Large & Growing Energy Company
Large & Growing Energy Company For personal use only • Beach Petroleum – during FY07: – A top Australian energy company – ASX200 – Market capitalisation of over $1 billion – Major investment in Cooper Basin & infrastructure – supplies over 20% of Cooper Basin gas to east coast markets – Bass Strait
Slide 4: Beach … A Diversified Energy Provider
For personal use only Gas LPG Processing Coal Seam Gas Liquids Gas Pipelines & Natural Gas Export Facilities Beach … A Diversified Energy Provider Developing Crude Oil Geothermal Power
Slide 5: Large Infrastructure Holdings
Large Infrastructure Holdings For personal use only Feasibility study for CO2 Geosequestration: cryogenic Large Scale gas processing Potential plant Moomba Plant Ballera Gas Gas & Liquids Processing & Processing Distribution Distribution Port Bonython Jackson-Moonie Liquids Pipeline Crude Oil Proces
Slide 6: Historical Growth: 2002 - 2006
Historical Growth: 2002 - 2006 For personal use only Gross Revenue Increased Production 200 $ million p.a. Concept Year on year 150 100 50 0 FY02 FY04 FY06 Production mmboe p.a. EBIT 1.5 $ million p.a. 60 1 40 Concept 20 0.5 0 FY02 FY04 FY06 0 FY02 FY04 FY06 NPAT $ million p.a. 50 40 30 20 10 0 FY02
Slide 7: Production Surge: 2006 - 2007
Production Surge: 2006 - 2007 For personal use only Oil and gas sales up 275% to $472.2 million Gross Revenue Production Gain on sale of BMG - $71 million 500 400 $ million p.a. Surge 2006-07 Net gain on currency hedges - $11.5 million 300 200 100 0 FY02 FY04 FY06 Production •EBIT up 229% to $189
Slide 8: Main Strengths
Main Strengths For personal use only High Strong, Revenue Revenue Highquality quality Strong, proven from Australian provenvalue value from33key key Australian eastern adding producing easterncoast coast adding management producing portfolio portfolio management assets assets Reserves Reservesto to
Slide 9: Peer Comparison (2P Reserves)
Peer Comparison (2P Reserves) For personal use only Peer Comparison 90 Beach Petroleum Proved and Probable Reserves (mmboe) 80 Oil Search 70 60 AWE 50 40 ROC 30 20 10 0 2P Res erves BPT OSH AWE ROC AZA AED IPM TAP AMU ARQ
Slide 10: Diversified Reserves Distribution
Diversified Reserves Distribution For personal use only 62% 500 KM Oil 31% Liquids Gas Proved and 7% Probable Reserves of 90 million boe GLADSTONE Proved & Probable Reserves at 1 July 2006 JACKSON BRISBANE MOOMBA BALLERA TAMWORTH Large 3P Coal Seam Gas Contingent or potential LITHGOW possible ADELAI
Slide 11: Reserves & Upside Potential
Reserves & Upside Potential For personal use only 180 160 140 2P reserves (mmboe) Reserves potential upside 120 BMG Gas/Condensate 100 Cooper Oil Program 80 FY08 Tipton West CSG 60 Present 2P 40 20 0 Beach has upside exposure over 3 to 5 years to over 62 mmboe of additional reserves in existing proj
Slide 12: Key Projects
Beach Petroleum Limited For personal use only Key Projects: Cooper Oil, Gas & Gas Liquids Queensland Coal Seam Gas BMG (offshore Gippsland) Gippsland) Oil & Gas
Slide 13: Cooper-Eromanga Basin
Cooper-Eromanga Basin For personal use only Kenmore & Bodalla South – the precursor to the Cooper Oil Program Bodalla Block Beach 100% Naccowlah Block Christies/Sellicks Cooper Basin Beach 38.5% Beach 75% Joint Ventures Beach ~21% Oil to Brisban e
Slide 14: Cooper Basin Revenue Drivers
Cooper Basin Revenue Drivers For personal use only Gas and Long term gas contracts Gas Liquids Strong & Stable revenues: •Robust Beach economics Operated Production of ~1 mmbbl p.a. •Delhi reserves Oil acquired for $8.65/boe •Potential for substantial lift Cooper Oil in reserves & Program Significan
Slide 15: Highly Profitable Cooper Oil
Highly Profitable Cooper Oil For personal use only High Netback Oil Production • Production for the first half year of FY07 was 1.63 mmbbl (approx. 60% Average free cash of Beach-operated) AUD53.73/bbl at oil price of AUD86.45/bbl • Chart shows netback per barrel sensitivity for various oil prices •
Slide 16: Cooper Basin FY07 Highlights
Cooper Basin FY07 Highlights For personal use only Callawonga Oil Field Bodalla South Field extension •Discovered July ’06 •Two new wells drilled on 3D •Reserves ~1 mmb (net to Beach) seismic •3D seismic suggests significant •Northern portion of field additional reserves potential opened up for furt
Slide 17: Cooper Oil Project (COP)
Cooper Oil Project (COP) For personal use only Intensive exploration, Building high value appraisal & development reserves additions Targeting up Potential to Near & within Average to 15 mmbbl add NPV of existing Beach net to Beach up to oilfields equity ~ 25% over 3-5 years $350+ million* * At pres
Slide 18: COP Program for 2007-08
COP Program for 2007-08 For personal use only Naccowlah Block (BPT 38.5%) 41 wells 155 wells BPT ~24% Potential to add • 3-5 mmb • >3000 bopd Other SA & Qld 105 wells (BPT ~20%)
Slide 19: Queensland Coal Seam Gas
Queensland Coal Seam Gas For personal use only 174 Tipton West (Dalby Block): BPT 40% •Proved & Probable reserves of 174 PJ •Possible (3P) resource of 2300 PJ 2300 2P Developed & Contracted 3P Potential Close to markets & pipelines – abutting main trunk line to Brisbane Very high exploration potenti
Slide 20: Tipton West Coal Seam Gas
Tipton West Coal Seam Gas For personal use only Phase 1 Development – 82 wells: •Development Drilling Completed •Gas Sales Commenced in February •Target Rate 30 TJ/day • Contract for 10 PJ/yr for 15 years •Possible resource in Dalby Block of 2300 PJ Strong Exploration Potental: •Dalby South and Milm
Slide 21: Tipton West Coal Seam Gas
Tipton West Coal Seam Gas For personal use only • Important expansion development over FY08 • Three pilot projects planned • Objective to increase reserves by 8% more than 200 PJ (~14 mmboe 9% net to Beach) Undeveloped/ uncontracted 83% 2P Developed & Contracted Planned '08 expansion 3P Resource
Slide 22: Basker-Manta-Gummy (BPT 40%)
Basker-Manta-Gummy (BPT 40%) For personal use only Significant increase in reserve estimates following development drilling: • Oil 2P reserves nearly double original estimate • Gas-condensate resource nearly quadrupled Sold a 10% interest (June ’07) to Itochu Corporation of Japan for $123 million ca
Slide 23: BMG Reserve/Resource Estimates
BMG Reserve/Resource Estimates For personal use only Oil Reserves 13 39 77 Gas Resource 20 63 137 Condensate Resource 66 19 47 “P90/P50/P10” estimates* Total 39 121 261 Reserves/Resources 0 50 100 150 200 250 300 Million barrels of oil equivalent * For 100% of project, based on latest certification
Slide 24: BMG: Increase in Reserves
BMG: Increase in Reserves For personal use only • 2006 Development Drilling increased size of Basker Field • Increases to Oil Reserves & Gas Resource • Wells drilled to date tend More Moredrilling drilling to be nearer the crest of required required the field than intended Oil-water Oil-watercontact
Slide 25: BMG: Current Status
BMG: Current Status For personal use only Current Status – Production Commenced December 2006. – Higher than expected Gas-to-Oil ratio – probably due to wells located higher on what now seems to be a much larger structure. – Cumulative Production (100%) to end June ’07 to end June ’07 ~2.5 mmb (incl
Slide 26: BMG: Further Oil Development
BMG: Further Oil Development For personal use only Up to 3 further Basker Wells addressing ~15mmb of undeveloped 2P reserves – Drilling ….. Basker-6 in late 2007 (remainder mid 2008) – Basker-6 expected to be online early 2008 – Export and sales of gas will ultimately help maximise oil production
Slide 27: High Impact Exploration Projects
Beach Petroleum Limited For personal use only High Impact Exploration Projects
Slide 28: High Reward Exploration
High Reward Exploration For personal use only • Offshore Bass Basin (BPT 50-80%) Spikey Beach-1 and Peejay-1 scheduled for 2008 • Offshore Taranaki Basin (BPT 20%) Kopuwai-1 scheduled for 2007 • Offshore Otway Basin (BPT 50%) Drilling in Vic/ P46 scheduled for 2008 • Production Testing (BPT 40-50%)
Slide 29: Bass Basin - Oil
Bass Basin - Oil For personal use only • Similar hydrocarbon system to Gippsland Basin (BMG Project). • Proven Hydrocarbon System. • Location near basin edge – Possible (P10) oil prone. reserves of 33 mmb Possible (P10) • 50 km offshore. reserves of 57 mmb • Pipeline to shore or FPSO development con
Slide 30: Bass Basin – T/38P
Bass Basin – T/38P For personal use only Spikey Beach Prospect • Area = 12km2 • Relief = 30m • Depth to target = 1450m. (Eastern View Coal Measures) • Potential P10 reserves = 33mmb • Prospect Risk = 27% • Drill with Jack-up. • TD = 2000m
Slide 31: Bass Basin – T/39P
Bass Basin – T/39P For personal use only Peejay Prospect • Area = 24km2 • Relief = 70m • Depth to target = 13400m. (Eastern View Coal Measures) • Potential P10 reserves = 57mmb • Prospect Risk = 20% 1390 mss • Drill with Jack-up. • TD = 2600m
Slide 32: Taranaki Basin (NZ) – PEP 38482
Taranaki Basin (NZ) – PEP 38482 For personal use only Kopuwai Possible (P10) recoverable 155 mmb AWE oil development ~30mmb Location • 60km offshore • 137m water depth • Southern Taranaki Basin – OMV oil Maui has proven source kitchen development produced 3Tcf ~50mmb • Similar hydrocarbon system to
Slide 33: PEP 38482- Kopuwai Prospect
PEP 38482- Kopuwai Prospect For personal use only • Area = 44km2 • Relief = 70m • Depth to target = 3830m. Pr. Kopuwai-1 • Location near Tui – oil prone. • TD = 4200m to intersect Basement. • Potential P10 reserves = 155 mmb. • Prospect Risk = 16% • Drill with Semi-sub. • Water Depth = 137m • FPSO d
Slide 34: Offshore Otway Basin – Gas
Offshore Otway Basin – Gas VIC/P46 – Beach 50% For personal use only Target size: approx. 1200 PJ gas Fermat Prospect
Slide 35: Large Gas Liquids Potential – NZ
Large Gas Liquids Potential – NZ For personal use only • Beach 20% • Lightly explored • Working petroleum system /good reservoir sands demonstrated by sub- commercial gas/condensate discovery (Galleon-1) and good shows in Cutter-1 Barque • Significant potential for large gas/condensate resources – B
Slide 36: Growth Opportunities & Outlook
Beach Petroleum Limited For personal use only Growth Opportunities & Outlook
Slide 37: Strategies
Strategies For personal use only • Build gas portfolio around eastern seaboard pipeline network • Realise value for Coal Seam Gas assets with LNG ~800 PJ Possible Reserves Potential – (pure CSG companies are reflecting on average $0.54 per GJ … applied to BPT would imply additional ~$400 million pot
Slide 38: Spot Gas at Unprecedented Prices
Spot Gas at Unprecedented Prices For personal use only • Spot gas prices in 2007 winter: – Average >$25/GJ in eastern Australia – Peak sales at >$400/GJ – Ex-Moomba prices >$35/GJ • Contributing factors: – Delays in new supplies – Colder than average winter – Storage volumes down – Hydroelectricity
Slide 39: Geothermal Exploration
Geothermal Exploration For personal use only • Beach farming in to earn 21% interest in 4 geothermal exploration licences in SA • Contribute up to $10 million to drill 1 -2 wells to demonstrate hot rock energy resource • Can contribute a further $20 million to earn a total 36% - install 7.5 Mw plant
Slide 40: Large Scale CO2 Storage
Large Scale CO2 Storage For personal use only • Long term carbon storage hub in depleted gas reservoirs in Cooper Basin: – Large scale (> 20 million tpa) – large capacity (>400 million tonnes) • Secure storage solution for eastern seaboard CO2 emissions • Initial Demonstration Phase proposed to stor
Slide 41: Outlook for FY08
Outlook for FY08 For personal use only Production ¾ ~10 mmboe ¾ ~35% Oil Development: ¾ Basker Oil Development ¾ Manta-Gummy Gas Appraisal/Development ¾ Tipton West CSG Expansion ¾ Callowonga Oil Appraisal Drilling & Flowline Exploration: ¾ Total of 200 wells in FY 2008 ¾ Cooper Oil Project (~
Slide 42: Cooper / Eromanga Basin well program
For personal use only Over 200 wells COOPER COOPER/ EROMANGA 1414 Beach / EROMANGA BASIN BASIN BeachOperated OperatedWells Wells programmed 8787 SA 1818QLD 11Stuart Stuart Cooper Operated OperatedWell Oil SA Cooper Oil Cooper Oil Program Well Program Program QLD Cooper Oil Program Wells Wells Wells
Slide 43: Important Notice & Disclaimer
Important Notice & Disclaimer For personal use only Beach Petroleum has prepared this presentation based on information available to it. No express or implied representation or warranty is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions con
Slide 44: For personal use only
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