Beach Energy Limited · ASX:BPT
Beach Energy — Beach Petroleum — Macquarie Securities Australian Conference 2007
41 slides from Beach Energy's conference presentation, May 4, 2007
Slide 1: Beach Petroleum Limited – Macquarie Securities Australian Conference
BEACH PETROLEUM, Beach Petroleum Limited Macquarie Securities Australian Conference | Reg Nelson — Managing Director, Beach Petroleum May 2007
Slide 2: Summary
Summary a Company profile a Five year performance a Key projects a Growth opportunities and outlook Croivbarbiciry tae
Slide 3: Company Profile
BEACH ao PETROLEUM, Beach Petroleum Limited ih iia Company Profile|
Slide 4: Company Attributes
Company Attributes High quality, balanced portfolio of assets with solid Australian reserves base Strong, long term cash flow potential Reserves:Production ratio of ~ 10 years Proven value manager of assets Stable workforce — key people long term employees Diversified portfolio — geagraphic & commod
Slide 5: Corporate Structure & TSR
Corporate Structure & TSR Shareholder Return 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% + Total Shareholder Return: a Admitted to ASX 200 in September 2006 a Market capitalisation of $1.15 billion @ $1.30/sh
Slide 6: Key Revenue Earning Projects
Key Revenue Earning Projects Cooper Basin: a Oil, gas and liquids — over 200 fields « Long-term gas contracts « Oil production forecast to increase through Cooper Oil Project « Moomba hub connects to eastern seaboard pipeline system « Liquids pipeline to Port Bonython & Basker-Manta-Gummy (BMG) Proj
Slide 7: Reserves -- June 2006
Reserves -- 30 June 2006
Slide 8: Oil Search
0 200. 80. 0. 49. 6 Oi; Search Beach Petroleum rdman riboe 90 164 im Beach has upside exposure to c.65mmboe of additional reserves in existing projects/developments Beach AMG Gas Cooper Oil Tipton Beach Reserves Project = Project West Reserves upside potential
Slide 9: Proven Ability to Perform
BEACH ao PETROLEUM, Beach Petroleum Limited ih iia Proven Ability to Perform
Slide 10: Historical Growth: 2002 to 2006
Historical Growth: 2002 to 2006 $ million $ million 160 140 120 160 80 60 40 20 i) 4s 40 35 30 25 20 15 10 5 o @ Gross Revenue FYO2 FYO3 FYO4 FYO5 FYO6 © Net Profit After, Tax FYO2 FYO3 FYO4 FYOS FYO6 $ million 60 50 40 30 FY02 FYO3 FYO4 FYO5 FYO6 arnings Before interest & Tax Production BMG Onshore
Slide 11: Key Development Projects
Beach Petroleum Limited BEACH ty PETROLEUM, Key Development Projects: | BMG (Offshore Gippsland) Oil & Gas | Cooper Oil, Gas & Gas Liquids | Queensiand Coal Seam Gas | May 2007
Slide 12: Basker-Manta-Gummy (BMG)
Basker-Manta-Gummy (BMG) Beach 50% Significant increase in reserve estimates following development drilling: « Oil 2P reserves nearly double original estimate « Gas-condensate resource nearly quadrupled « Estimated field life nearly trebled to 17 years * Based on latest certification by Gaffney Clin
Slide 13: BMG: Increase in Reserves
BMG: Increase in Reserves a Basker Field appears to be much larger than first prognosed a Implications are more oil & much more gas-condensate than expected # Wells drilled to date tend to Ante be nearer the crest of the Sock, | Baskdr South field than intended : ie Oil-water contact inferred prior
Slide 14: BMG: Current Status
BMG: Current Status Current Status 2 Production Commenced 17 December. = Higher than expected GOR (~2,000 actual vs 1,200 expected) — probabi due to wells located higher on a much larger structure. = Operational issues, primarily with compression facilities have largely been addressed. Bi Expon diod
Slide 15: BMG: Current Status
BMG: Current Status Status at 19 April 2007 a Producing from Manta-2A, Basker 2,3 &5. a Gas being injected into Basker-4 (~32 mmcfd) a» Medium term target 15- 20,000 bopd 15.
Slide 16: BMG: Further Oil Development
BMG: Further Oil Development Up to 3 further Basker Wells addressing ~15mmb of undeveloped 2P reserves « Cost ~ $250 to $300 million* « Drilling ..... Basker-6 Late 2007 (remainder mid 2008) « Online early 2008 « Gas development program will help maximise oil production x Alf numbers are for 100% of
Slide 17: BMG: Gas Development Plans
BMG: Gas Development Plans « Conditional Gas Sales Agreement with Alinta for Tasmanian power generation (225 PJ over 15 years) « Aiming for Project sanction 2°¢ Quarter ‘07 - startup 2009 » Drill up to 3 wells in Manta & Gummy Fields in 2008 « Gas Pipeline to Shore +Gas Processing Facility (prob x B
Slide 18: Cooper-Eromanga Projects
Cooper-Eromanga Projects 18.
Slide 19: Cooper-Eromanga Basin: Strong Profitability
Cooper-Eromanga Basin: Strong Profitability High Netback Oil Production Production for the first half year of FY07 was 0.9 mmbbi (approx. 50% from Beach-operated and 50% from Santos-operated) Chart shows netback per barrel sensitivity for various oil prices Average realised price for 1H FYO7 was AUD
Slide 20: Cooper-Eromanga Basin: Highlights FY07 to Date
Cooper-Eromanga Basin: Highlights FY07 to Date a Callawonga Oil Discovery « Online in Nov @ 1,000 bopd (net) « Reserves ~1 mmb (net to Beach) a Cooper Oil Project Success « (18 wells drilled, 16 successful - ~39% success rate) 20...
Slide 21: Cooper Oil Program (COP)
Cooper Oil Program (COP) am Development & Appraisal Program operated by Santos in existing oil fields m@ Average Beach equity is ~25% (but 38.5% of Naccowlah Block) a@ Targeting reserves replacement (net to Beach) of ~ 13 mmb over 3 to 5 years sore 21.
Slide 22: COP Netback Sensitivity Analysis
COP NETBACK SENSITIVITY ANALYSIS COP economics are robust with prevailing oil prices ... AUD/bbi Oil Price 60.00 75.00 90.00 Finding & 22.00 22.00 22.00 Development Production 10.00 10.00 10.00 Costs Royalties* 13.00 * Includes Delhi royalties 20.00 AUDibbl 7S ‘Ol Price {(AUD/bbI} 80 @ Neatback O Fi
Slide 23: COP Rationale
COP Rationale = ~700 mmb Original Oil In Place (OO1P) in existing Cooper Basin fields a Ultimate recovery expected from existing wells ~200 mmb (28% recovery factor) a Aim to increase recovery factor by 5-15% >> additional 35-100 mmb m Low risk/high success rate (~75 to 80% to date) # Requires many
Slide 24: COP Projections for 2007
COP Projections for 2007 # Potential to yield reserves increase of 3-6 mmb p.a. from: a Naccowlah Block-(Beach 38.5%)" 24 wells (13 exploration, 11 dev & appraisal) Programme commenced March 2007 Cost $21 million (net) Expected Reserves ~1 mmb (net) Expected Initial Production 1,000 BOPD (net) Expec
Slide 25: Tipton West Coal Seam Gas
Tipton West Coal Seam Gas @ Beach 40% a Proved & Probable (2P) reserves: 174 PJ a Very large resource: a Upside potential of 2,300 PJ a Close to markets & pipelines # High Exploration Potential 25...
Slide 26: Tipton West Coal Seam Gas
Tipton West Coal Seam Gas Phase 1 Development — 82 wells Development Drilling Completed Gas Sales Commenced in February Target Rate 30 TI /day Firm commitment recently upgraded to 10 PJ/yr for 15 years, with a further 7.3 P3/yr put option & Exploration Potential « Taroom Coal Measures « Dalby South
Slide 27: High Impact Exploration Projects
BEACH ue PETROLEUM, Beach Petroleum Limited High Impact Exploration Projects |
Slide 28: High Reward Exploration
High Reward Exploration = Carnarvon (BPT 10%) Hurricane-2, Q2 ‘07 a Offshore Otway Basin (BPT 50%) ® Production Testing Champagne Creek (Surat) a Offshore New Zealand 28...
Slide 29: Present Drilling Targets FY07-08
Present Drilling Targets FY07-08 29...
Slide 30: Beach 10% – Hurricane
Beach 10% Hurricane-2 a Hurricane-1 30.
Slide 31: Offshore Otway Basin - Gas
Offshore Otway Basin - Gas IF LOCATION MAL orway Bas Beach 50% Target size: approx. 1 TCF gas Approx. same scale 31
Slide 32: Beach 20%
Beach 20% Lightly explored Sub-commercial gas/ condensate discovery (Galleon-1) Significant upside potential «a Barque Prospect potential for 6 TCF of gas + 500 million barrels of condensate 32...
Slide 33: Beach 10%
a Beach 10% a Close to Brecknock, Scott Reef and Brewster discoveries
Slide 34: Geothermal Exploration
Geothermal Exploration a Beach farming in to earn 21% interest in 4 geothermal exploration licences in SA Paralana 2 a 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 to supply
Slide 35: Growth Opportunities & Outlook
BEACH ao PETROLEUM, Beach Petroleum Limited ih iia Growth Opportunities & Outlook |
Slide 36: Strategies
Strategies mw Build gas portfolio around eastern seaboard pipeline network w Entry into projects with LNG potential at ground floor @ Greater exposure to high reward exploration — Australia and international m Geothermal project assessment — both for long term revenue potential and for carbon credit
Slide 37: Production
Production Cooper Oil Program expected to build oil production significantly from 2008-2010 Beach-operated Cooper oil expected to continue to produce at ~ Immbbl p.a. or better over the next 3-5 years - with good likelihood of continued reserves replacement # BMG oil production ~15,000-20,000 bopd (
Slide 38: Exploration
Exploration Good medium to long term potential for low risk exploration in Cooper region Potential discoveries at Glenaire (onshore Otway) and Champagne Creek (Surat) Offshore Carnarvon Hurricane play could have significant follow-up potential Large gas prospects offshore from Portland, Victoria Lar
Slide 39: What Sets Beach Apart?
What Sets Beach Apart? a Reserves Base » At top of mid caps « Stable mix of oil, gas & liquids «» Geographic spread — offshore & onshore «» Long life production potential (10 years reserves:production ratio) a Attitude » Commitment to reward shareholders (consistent record of TSR) « Commercially ast
Slide 40: ach Petroleum | has prepared U :
ach Petroleum | has prepared U : : ae accu completeness F corectness of the information, opinions an agents oF part of any © Wi of ae Beach ore Ay offer or Invitation to subscribe fa ul Beach a awhile, ae Ippue Of ae Gccoment under the Corp:
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