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CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited

Beach Energy Limited · Mar 5, 2012 · 51 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 1
    Beach Energy Limited Citi conference London, 5-6 March 2012 Goldman Sachs conference New Citi and GS conferences March 2012 York, 7-8 March 2012 Slide 1
  2. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 2
    Strategic and operational overview Citi and GS conferences March 2012 Slide 3
  3. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 3
    A unique value proposition Citi and GS conferences March 2012 Slide 4
  4. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 4
    Safety a priority Low Supervision Classification for Production Operations (SA) by South Australian Government regulator HSE Strategic Planning three year plan Continued support for APPEA Stand Together for Safety campaign 2010…
  5. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 5
    Large Resource base to build Reserves 2P Reserves and 2P Reserves 2C Contingent Resources 77 MMboe* 660 MMboe* 73% gas & gas liquids 2P Reserves are a fraction 27% oil of the total resource base 97% gas & gas liquids 3%…
  6. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 6
    Reserves expected to increase for FY12 100 90 2P Reserves 80 70 60 50 66 MMboe 77 MMboe 95 MMboe 40 30 20 10 0 FY10 FY11 FY12* 1. Additions to be confirmed as part of Beachs annual reserves statement, and do not *…
  7. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 7
    FY12 production guidance of 7.5 MMboe Beach actual and forecast production Production guidance for FY12 expected to be primarily driven by: 8 7.5 MMboe Better access for activities following 7 6.6 MMboe Cooper Basin floods 6 Oil…
  8. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 8
    Underlying NPAT increased significantly for 1H12 Six months to December 2011 (1H12) Beach historical underlying NPAT 70 underlying net profit after tax (NPAT) has increased, year on year, by 179% 60 Improvement mainly due to:…
  9. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 9
    Renegotiation of the Delhi Esso royalty Legacy royalty from the acquisition of Delhi 35 Beach Group Royalties* Petroleum Pty Ltd in 2006 30 Original royalty agreement required Delhi to pay Esso Resources Australia Pty Ltd (EARL)…
  10. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 10
    FY12 Capital guidance Higher capex due to enhanced FY12 program with no flooding forecast Citi and GS conferences March 2012 Slide 11
  11. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 11
    Unlocking the Cooper Basin gas potential Citi and GS conferences March 2012 Slide 12
  12. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 12
    Prolific acreage position strategically located Beach is well placed strategically and geographically, with the necessary infrastructure in place to supply gas to the market for generations to come Citi and GS conferences March…
  13. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 13
    Eastern Australian gas markets are growing Strong predicted growth in Eastern Australian gas and Asian LNG demand Cooper Basin has excellent channels to markets Gladstone based LNG projects add a new dimension to gas market…
  14. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 14
    Excellent prospects to increase Cooper Basin supply Current domestic gas demand 715 petajoules (PJ) per annum: 100 PJ from Cooper Basin Domestic and LNG project gas demand expected to grow to 3,000 PJ by 2025* 2015+ opens up…
  15. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 15
    Cooper Basin a potential supply option for LNG Gladstone based LNG projects Benefits of non-CSG supply to LNG proponents include: Flexibility, security and base load supply Field sequencing optimisation, delivering enhanced…
  16. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 16
    LNG supply opportunity Discussions ongoing between Beach and Santos for the supply of gas to Santos GLNG Project: 15 year contract proposed to commence around 2014 Oil-linked gas pricing Joint Venture discussions regarding the…
  17. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 17
    The impact of eastern Australian LNG projects Australian East Coast 2P Three LNG projects in Gladstone, Reserves* Queensland, have achieved FID, committing 20 mtpa capacity LNG proponents are seeking more Non-LNG gas for…
  18. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 18
    SACB/SWQ JV Significant long-term resource potential Citi and GS conferences March 2012 Slide 19
  19. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 19
    SACB/SWQ JV Santos operated Equity interests of approximately 20% for the SACB JV and 23% for the SWQ JV A significant land holding of 26,800 km2 (gross) Situated in a proven and prolific basin Cooper Basin cumulative gross…
  20. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 20
    SACB/SWQ JV A diversified product stream delivering gas, gas liquids and oil to multiple markets Synergies with other Beach operational areas Significant infrastructure made up of: Wells accessing Permian strata Gathering systems…
  21. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 21
    Resources conversion drivers Resources to reserves conversion driven by: Infill drilling 40 vs 200 acre spacing Infill drilling with denser well spacing moving towards 40 acres More focused fracture stimulation of individual…
  22. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 22
    Unconventional Cooper Basin gas potential Citi and GS conferences March 2012 Slide 23
  23. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 23
    Commanding acreage position PEL 218 1,600 km2 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 2012 SACB JV 7,100 km2…
  24. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 24
    Program highlights to date Results from Encounter-1 and Holdfast-1 exceeded expectations due to: Shale thickness Gas saturated sands outside structural closure 700 metres of gas saturated section encountered 2 MMscfd maximum…
  25. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 25
    Shale and basin centred gas play Source: Amended from Schenk and Pollastro, 2002 Gas saturation across a continuous shale and basin centred gas play Citi and GS conferences March 2012 Slide 26
  26. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 26
    PEL 218 drilling - massive gas saturated zone REM thickness exceeded expectations at 350-400 metres Core and log analysis indicates REM, Toolachee, Daralingie and Patchawarra Formations all gas saturated Fracture stimulation…
  27. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 27
    Advantages of Beachs Cooper Basin acreage Good working relationship with pastoral owners and other stakeholders Co-operative not competitive land use Semi-desert country Relatively flat topography Well established oil and gas…
  28. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 28
    Shale and sands isolated from aquifers Three cemented casing strings in the first 1,000 metres isolate surface aquifer Two cemented casing strings between 1,000 and 2,000 metres isolate the Eromanga aquifers Eromanga aquifers…
  29. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 29
    The next steps Fracture stimulate Encounter-1 with sequential stimulation and testing Independent certification of all reserves and resources Drill vertical delineation wells to appraise significant basin centred gas accumulation…
  30. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 30
    Things you can find in your own backyard A relatively under-explored part of the Cooper Basin with enormous potential Citi and GS conferences March 2012 Slide 31
  31. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 31
    Other unconventional opportunities Citi and GS conferences March 2012 Slide 32
  32. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 32
    Other unconventional opportunities Established significant acreage positions in other prospective basins Focusing on under-explored basins with infrastructure access close to markets: High grading acreage in parallel Further…
  33. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 33
    Otway and Gippsland basins Otway gas and liquids Beach 35-67% Conventional plays proven gas, condensate and oil discoveries Casterton main source rock and most Map with troughs shown and attractive unconventional target permits…
  34. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 34
    Bonaparte basin Beach earning up to 90%* of 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:…
  35. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 35
    Dominant Western Flank acreage position Citi and GS conferences March 2012 Slide 36
  36. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 36
    Cooper Basin Western Flank oil Western Flank oil is a core contributor to Beach due to: Sales in Brent, considerably stronger than WTI High net back per barrel of approx. A75* (incl. Opex, royalties and transportation costs) Strong…
  37. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 37
    3D and 2D seismic recently acquired PEL 91 Beach 40% (operator), Drillsearch 60% 336 km2 Aquillus 3D and 151 km2 Limbatus 3D seismic surveys completed and currently being processed Targeting Birkhead channel plays in line with PEL…
  38. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 38
    Western Flank oil production PEL 91 Bauer oil field expected to produce at up to 1,000 bopd (net) in April 2012 JV pipeline construction discussion ongoing PEL 92 Current net production 4,500 bopd Lycium to Moomba trunkline to…
  39. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 39
    FY12 Western Flank drilling program PEL 91 FY12 drilling program complete FY12 success of 1.4 MMbbl (net) to date, which has exceeded expectations PEL 92 JV in discussions for up to three exploration wells and three development…
  40. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 40
    New pipelines proposed Lycium to Moomba trunkline (Beach 60%): Capacity of 15,000 bopd 8 inch pipeline Expected completion first half 2012 Growler to Lycium flowline (Beach 40%): Capacity of 8,000 bopd 6 inch pipeline Expected…
  41. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 41
    Western Flank gas and gas liquids production Beach 50% (operator), Drillsearch 50% First production from the Middleton Brownlow production licence Gas sale agreement with the SACB JV for the sale of a minimum of 3 Bcf of raw gas…
  42. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 42
    Big oil potential, Tanzania Citi and GS conferences March 2012 Slide 43
  43. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 43
    Rift systems - Lake Tanganyika South Block, Tanzania Beach 100% Permit 7,200 km2 (Lake Albert 5,300 km2) Underexplored area with high potential Natural oil seeps on Lake Tanganyika, as with Lake Albert, indicate a working petroleum…
  44. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 44
    Egypt Established and growing portfolio Citi and GS conferences March 2012 Slide 45
  45. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 45
    Egypt overview Beach interests range 15 22% An established and growing portfolio of production, development & exploration opportunities Abu Sennan - six well appraisal/ exploration program three consecutive discoveries North…
  46. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 46
    Gulf of Suez North Shadwan Beach 20%, BP 50% (operator), Tri Ocean 30% NS 377 and NS 385 Near shore field NS 377 initially to produce approx. 1,000 bopd (gross) via pipeline to Ras Ghara facility NS 385 development well expected…
  47. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 47
    Abu Sennan concession exploration success Beach 22%, Kuwait Energy 50% (operator), Dover Investments 28% Oil, gas and condensate discoveries from the first three wells drilled ZZ-4 Gas and condensate, total flow rate of approx.…
  48. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 48
    Mesaha concession Beach 15%, Melrose 40% (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…
  49. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 49
    Summary multiple near term catalysts Citi and GS conferences March 2012 Slide 50
  50. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 50
    Multiple near term catalysts for FY12 Additional re-rating potential through portfolio optimisation and other opportunities Citi and GS conferences March 2012 Slide 51
  51. CITI CONFERENCE AND GOLDMAN SACHS CONFERENCE – Beach Energy Limited – slide 51
    Contact information Beach Energy Limited Head office 25 Conyngham Street Glenside SA 5065 Tel: +61 8 8338 2833 Fax: +61 8 8338 2336 Website: www.beachenergy.com.au Chris Jamieson Investor Relations Manager Tel: +61 8 8338…

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