Beach Energy Limited · ASX:BPT

Beach Energy — UBS Australian Energy Resources and Utilities Conference 2009

23 slides from Beach Energy's conference presentation, Jun 19, 2009

  1. Slide 1: A Track Record of Delivering

    For personal use only A TRACK RECORD OF DELIVERING UBS Australian Energy Resources and Utilities Conference 19 June 2009 Reg Nelson Managing Director

  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: Contents

    Contents For personal use only 1. Beach Strategy 2. Delivery Timetable 3. Financial Position 4. Operations Update 5. Exploration Update 6. Cooper Basin 7. Drillsearch Bid 8. Conclusion Page 3

  4. Slide 4: Navigating in Uncertain Times

    Navigating in Uncertain Times 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

  5. Slide 5: Beach Strategy

    Beach Strategy For personal use only Consistent, targeted growth •Long term cash flow production and reserves •Value investor Thinking ahead of the pack •Early entry, low risk, high return •Emerging technologies (eg carbon debate, geothermal) Balanced exploration portfolio 60:30:10 Conservative

  6. Slide 6: Beach Strategy – Consistently Creating Value

    Beach Strategy – Consistently Creating Value For personal use only 2001 – Western Flank Cooper Basin PEL 92 (75%)  8 mmbbl discovered, net return to date $100m 2002 – East Flank Cooper, Bodalla Block  Acquired for $18m, net return to date $100m 2004 – Offshore Gippsland, BMG  Initial farm-in 25%

  7. Slide 7: Delivery Timetable

    Delivery Timetable For personal use only  Consolidation of Cooper Basin ownership  Researching new technologies • Unconventional gas • Carbon sequestration • Geothermal power  Nil effective debt as of May 2009  $50m pa Exploration Program Region Cooper Basin W Cooper Basin Egypt Nth Bass & Brows

  8. Slide 8: Financial Position

    Financial Position For personal use only  Six months to Dec 2008 • NPAT up 117% to $127.5m • Operating cash flow –31% increase to $68m • Cash position of $139 m at Dec 2009 - Sensitivities on Realised AUD Oil Price $120 Net Debt gearing of 4.6% • Sales revenue up 34% to$334 million $100 Realised Oi

  9. Slide 9: Operations Update – Cooper Basin

    Operations Update – Cooper Basin For personal use only  Reserves 63 mboe at Dec 08 (238 PJ & 15 mmbbl)  Production Approx 20,000boepd  Oil 7,875 bopd  Gas 73 TJ / day Forecast 8.5 mmboe pa (Cooper only)  Profit Margin Gas ~$20/boe Oil ~$50/bbl  CAPEX $85 million pa Page 9

  10. Slide 10: Operations Update – Gippsland

    Operations Update – Gippsland For personal use only  Reserves (BPT 30%) Net 5 mmbbl, Dec 08  Production Net ~2,500 bopd  Gas Resource - 249 PJ  Basker-7 planned for early FY2010 Page 10

  11. Slide 11: Operations Update – Egypt

    Operations Update – Egypt For personal use only South East July (20%)  Further exploration planned for 2010 North Shadwan (20%)  Near shore fields development  Burtocal – further drilling to assess new potential Page 11

  12. Slide 12: Operations Update – Egypt (North Shadwan)

    Operations Update – Egypt For personal use only North Shadwan (20%)  “Nearshore” Fields (377 & 385) to be developed during FY2010  Net Reserves ~ 2 mbbl  First oil late 2009  CAPEX ~$8 million (net)  Teen-1 to be drilled 2H 2009 Page 12

  13. Slide 13: Operations Update – Egypt (Burtocal)

    Operations Update – Egypt For personal use only North Shadwan (20%)  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 m

  14. Slide 14: Operations Update – Geothermal

    Operations Update – Geothermal For personal use only  Paralana-2 well (mid 2009) Determine geothermal energy resource & permeability  Paralana-3 (contingent 2010) Determine circulation capacity  Next phase Install 7.5 Mw plant  Close to entry points in main transmission grids/ expanding mining o

  15. Slide 15: Exploration Update

    Exploration Update For personal use only  Forecast annual exploration expenditure ~$50 million/year • Cooper $25 million • Other Australia $10 million • International $15 million Page 15

  16. Slide 16: Development Update – Reserve Replacement Process

    Development Update – Reserve Replacement Process For personal use only  Tipton sale reduced 300 reserves by 76 mmboe 250  Partially offset by increased 200 BMG Gas Cooper & Egypt oil MMboe 150 Unconv. Gas reserves 100 Conv. Gas  Cooper Basin contingent 50 CSG Gas gas resource far exceeds 0 Oil th

  17. Slide 17: Exploration & Development Update – Reserve Replacement

    Exploration & Development Update – Reserve Replacement For personal use only “Beach’s unconventional gas resource dwarfs its existing Cooper Basin reserve” Cooper Basin Reserves & Resources Million boe – net to Beach 15 55 Oil Reserves 179 Conventional Gas Reserves 83 Conventional Gas Resources Unco

  18. Slide 18: Cooper Basin – Detailed Update

    Cooper Basin – Detailed Update 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 Page 18

  19. Slide 19: Cooper Basin – PEL Update

    Cooper Basin – PEL 92 Update For personal use only PEL 92  >8 mmbbl discovered to date  50% exploration success rate  Perlubie South-1 latest discovery (June „09)  F&D Cost ~$10/bbl (7 yr average)  Production, transport & royalty* costs ~$25/bbl  6 well program underway * Based on $A90/bbl Pag

  20. Slide 20: Drillsearch Takeover Update

    Drillsearch Takeover Update For personal use only  Offer is one BPT share for every 27 DLS shares • 50% premium to 3 mth VWAP  Offer date15 June 2009  Close Date 16 July 2009  Pre-bid agreements create relevant interest over 13.2%  Conditions include: • 90% relevant interest obtained • DLS not

  21. Slide 21: Drillsearch Takeover Update

    Drillsearch Takeover Update For personal use only BPT offers DLS shareholders: Greater potential for Shareholder Returns Beach vs Drillsearch Last 5 Years exploration success 800% 700% Greater financial strength 600% 500% A highly experienced % Movement 400% 300% DLS 200% technical team 100% BPT

  22. Slide 22: Beach Summary

    Beach Summary For personal use only • Top 10 energy producer* • S&P 200 listed • Cash positive with nil effective debt • Exposure to increasing oil price • Cornerstone legacy assets in the Cooper Basin • Track record of delivering *bymarketcapitalisationat17June2009 Page 22

  23. Slide 23: A Track Record of Delivering

    For personal use only A TRACK RECORD OF DELIVERING UBS Australian Energy Resources and Utilities Conference 19 June 2009 Reg Nelson Managing Director

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