Beach Energy Limited · ASX:BPT
Beach Energy — Investor Presentation (November 2009)
28 slides from Beach Energy's investor presentation, Nov 9, 2009
Slide 1: Investor Briefing November 2009
For personal use only Investor Briefing November 2009 Bob Kennedy, Chairman Glenn Davis, Deputy Chairman Reg Nelson, Managing Director Hector Gordon, Chief Executive Officer 1
Slide 2: Disclaimer
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 be affected by a variety
Slide 3: The Great Financial Crisis
The Great Financial Crisis For personal use only In FY09 many companies: Beach on the other hand: • Experienced shrinking • Had record production of oil operations and gas • Delivered lower earnings • Had improved earnings • Announced lower profits • Announced a record profit • Cut back on div
Slide 4: Beach Overview – Basic Facts
Beach Overview – Basic Facts For personal use only • 2P reserves of 66 MMboe • Contingent resource base of 293 MMboe • Substantial, diverse exploration portfolio • No debt • Cash on hand: ~$150 million (at 31 September 2009) “Beach Petroleum (BPT) has balance Sheet strength and a long term productio
Slide 5: FY09 – Stellar Operational Performance
FY09 – Stellar Operational Performance For personal use only • Record NPAT of $260 million: – Normalised NPAT of $64 million (21% increase on FY08) • Record sales revenue of $581 million • Record production of 9.6 MMboe: – Approximately 26,300 boed • FY09 dividend of 3.75 cents per share: – Interim
Slide 6: Reserves
Reserves For personal use only 2P Reserves – 66 MMboe 2P Reserves & Contingent • Cooper Basin – 61 MMboe Resources: 359 MMboe • Gippsland & Egypt – 5 MMboe • Total Oil 19 MMbbl (28%) Contingent Resources – 293 MMboe • Cooper Basin 263 MMboe Gas Gas Liquids Oil 2P Reserves Conventional 84 MMboe U
Slide 7: Operations Update
Operations Update For personal use only Highlights to date • Continuing strong financial position • Egyptian drilling success • Continued exploration success in the Western flank of the Cooper Basin • Burnside gas discovery Browse Basin • Two cent special dividend paid 7
Slide 8: Operations Update
Operations Update For personal use only Cooper Oil and Gas Ongoing western flank oil exploration Unconventional gas exploration in Nappamerri Trough Commercialisation of gas resources Gulf of Suez Oil Nearshore oil fields being developed, first production 2010 Burtocal oil discovery being
Slide 9: A Global Outlook
A Global Outlook For personal use only Greenhouse gas curbs will bring major changes to energy use … but • International Energy Agency (IEA) acknowledges that fossil fuels will still comprise ~80% of world needs by 2030 • Wind power useful but intermittent and constrained by existing transmission in
Slide 10: What Will the World Need?
What Will the World Need? For personal use only Liquid fuels for transport (e.g., diesel, jet fuel) • IEA 2008 study of 800 largest world oil fields (>75% of global oil reserves) are in faster decline than estimated in 2006 (now 6.7% p.a. decline rate compared to 3.7% p.a. two years earlier) • OPEC
Slide 11: Where is the Oil Price Going?
Where is the Oil Price Going? For personal use only • World oil production expected to fall by 45MMb/d by 2030 • World energy demand expected to rise by 21MMb/d by 2030 • Alternative sources for liquid fuels are either – Not yet fully developed; – Not yet large enough; or – Not yet economic • All in
Slide 12: Other Fuel Necessities
Other Fuel Necessities For personal use only • Lower carbon, higher hydrogen fuels for electricity generation … using less water – Electricity generation in Australia accounts for ~35% of greenhouse gas emissions (most from brown coal in Victoria) • Natural gas is “four steps” ahead of coal Methane
Slide 13: Advantages of Natural Gas
Advantages of Natural Gas For personal use only • Low carbon, water and land- use intensity of gas-fired power generation • Australian resource base equivalent to several hundred years of use • Australia has an extensive and growing gas pipeline network • Gas is reliable and proven for power generat
Slide 14: The "Shale Gas Effect"
The “Shale Gas Effect” For personal use only New Way to Tap Gas May Expand Global Supplies By Clifford Krauss Published: October 9, 2009 OKLAHOMA CITY — A new technique that tapped previously inaccessible supplies natural gas in the United States is spreading to the rest of the world, raising hopes
Slide 15: Beach's Forward Strategy
Beach’s Forward Strategy For personal use only • Next 3 to 5 years: Find more oil! • Where? Cooper, Egypt. Develop large contingent conventional gas resources already booked in the Cooper Assess potentially huge Shale Gas and other unconventional gas resources in the Cooper for development • A
Slide 16: Finding more oil: Egypt overview
Finding more oil: Egypt overview For personal use only • Highly prospective region with long established industry & favourable legislative & fiscal regime • Home to giant oil fields (>500 million barrels) (e.g., Morgan, July & Ramadan) • First oil production from North Shadwan concession (BPT 20%) e
Slide 17: Success in Egypt
Success in Egypt For personal use only Earning returns on Egyptian investment: North Shadwan • Innovative approach using extended reach deviated well drilled from shoreline • Beach 20%, Tri Ocean Energy Company 30%, operated by BP Exploration (Delta) Ltd (50%) • Success with 145 m oil column interse
Slide 18: Tanzania – East African Rift
Tanzania – East African Rift For personal use only • Beach 100% • Finalisation of Petroleum Sharing Agreement (PSA) in FY10 • Under-explored, emerging hydrocarbon province with high potential & known natural oil seeps • Large oil discoveries in recent years in to the north in Uganda "We have a rich
Slide 19: Gas – the Now & Future Fuel
Gas – the Now & Future Fuel For personal use only Cooper Basin Gas – Well Located For Gas Supply • It is expected that emissions reduction requirements will increase Australian demand for natural gas • Pipelines are in place to deliver gas from the Cooper Basin to NSW, Victoria and SA • Beach was an
Slide 20: Cooper Basin Gas – US Gas Industry Transformation
What the Future Holds For personal use only Cooper Basin Gas – US Gas Industry Transformation • Unconventional gas consumption in the US has Forecast Daily North American Gas Production overtaken conventional gas • In 2008 US$35bn was spent on corporate deals aimed at shoring up unconventional gas r
Slide 21: Cooper Basin Shale
Cooper Basin Shale Nappamerri Trough For personal use only • Deepest part of Cooper Basin • Permian section has gas saturated sandstones on structural highs • No wells off structure – is there a “Deep-Basin” style accumulation? • Permian section has high resistivity mature shales (Roseneath and Murt
Slide 22: Nappamerri Trough
Nappamerri Trough For personal use only PEL 218 1600 sq.kms (~400,000 acres) Beach 90% (Operator) Adelaide 10% ATP 855P 1680 sq.kms (~415,000 acres) Beach up to 40% (initial Operator) 22
Slide 23: Working towards commercialisation of shale gas
What the Future Holds For personal use only Working towards commercialisation of shale gas US Unconventional Gas Outlook • Nappamerri Trough exploration • Sundance Energy Limited unconventional oil and gas alliance • Negotiating downstream alliances Source: Modified from American Clean Skies, Summer
Slide 24: Strategy & Key Objectives
What the Future Holds For personal use only Strategy & Key Objectives • Consistent, targeted growth: Long-term cash flow, production and reserves Value driven investments • Thinking ahead of the pack: Early entry, low risk, high return Participation in emerging technologies and opportunities
Slide 25: New name "Beach Energy Limited"
What the Future Holds For personal use only New name “Beach Energy Limited” • Highlights our fundamental strategy of investing in affordable low pollutant energy • A more modern label • Continued sound decision making in a new world of energy opportunities 25
Slide 26: Base business – developing existing reserves
What the Future Holds For personal use only • Base business – developing existing reserves • Convert contingent resources to reserves • Ongoing (and material) exploration success • Acquisitions and divestments • New energy business opportunities Production Time Beach’s existing portfolio has the pot
Slide 27: FY10 Outlook
FY10 Outlook For personal use only • Production guidance approx. 9.0 MMboe • First oil from North Shadwan block • Other things to watch for: Teen-1 exploration well in North Shadwan block Holdfast-1 Nappamerri Trough exploration well Finalisation of the PSA negotiations with Tanzanian Governme
Slide 28: Investor Briefing November 2009
For personal use only Investor Briefing November 2009 Bob Kennedy, Chairman Glenn Davis, Deputy Chairman Reg Nelson, Managing Director Hector Gordon, Chief Executive Officer 28