Investor morning 5 December 2012 Investor roadshow - March 2012 Beach Energy Limited Investor morning 5 December 2012 Slide 1
Welcome Chris Jamieson General Manager Investor Relations Investor morning 5 December 2012 Slide 3
Welcome and housekeeping Time Topic Presenter 9:00-9:10am Welcome Chris Jamieson 9:10-9:25am Strategic overview Reg Nelson 9:25-9:40am Operational overview Neil Gibbins 9:40-9:50am Financial management Kathryn Presser 9:50-10:10am…
Share price performance Beach share price vs S&P ASX Energy Index (XEJ) Entry into ASX100, 145% BPT.ASX Ex-100 thematic stock shorting, buying driven by macro factors XEJ.ASX unconventional driving down oil 135% price, capital…
Strategic overview Reg Nelson Managing Director Investor morning 5 December 2012 Slide 6
Company overview Fully funded capex program primarily focused on the Cooper Basin Investor morning 5 December 2012 Slide 7
Our people Staff numbers up 13% to 131 at end of FY12 Head count expected to increase by 37% to 180 by end of FY13 Continued focus on diversity Board stability Positive staff survey results Age Demographics 31% 54% 50 years+…
Stakeholder relations Working to maintain good stakeholder relations with: Traditional owners Landholders Government Dieri Consent Determination, Marree Station 1 May 2012 Cattle grazing in Cooper Creek on Mungerannie…
Eastern Australian gas markets are growing Existing domestic east coast contracts Projected east coast total demand Source: Core Energy Group, July 2012 The clean energy future is likely to incorporate a larger role for natural…
Unconventional basin exposure An unconventional but logical thought process Investor morning 5 December 2012 Slide 11
Targeting East African rift plays Gulf of Suez Mesaha Concession Lake Tanganyika Investor morning 5 December 2012 Slide 12
Operational overview Neil Gibbins Chief Operating Officer Investor morning 5 December 2012 Slide 13
Keeping our people safe Low Supervision Classification for Production Operations (SA) by DMITRE Continued support for APPEA Stand Together for Safety campaign Two recordable injuries among Beach employees across all operated…
Actual and forecast production 9.0 MMboe 8.5 MMboe 7.5 MMboe 6.6 MMboe Gas* 4.8-5.0 MMboe Gas* (28-29 PJe) 4.8 MMboe Gas* (28 PJe) 4.5 MMboe (26 PJe) Oil Oil 3.7-4.0 MMbbl Oil 2.7 MMbbl 2.1 MMbbl * Gas and gas…
2P reserves and 2C contingent resources 2P: 93 MMboe 2P and 2C: 559 MMboe 448 MMboe 73 MMboe 93 MMboe 20 MMboe 18 MMboe Oil Gas and Gas Liquids 2P Reserves Gas and Gas Liquids Oil Large reserve and resource base…
Sources and uses of funds FY13-FY14 330 million cash on hand (as at Sources and uses of funds* 30 November 2012) Am 1,400 FY13 expected to be a peak capex year Dividends Undrawn FY14 assumes unconventional 1,200 facilities and…
Funding capacity Beach well funded over FY13 and FY14 with Available Liquidity minimal financing risk 400 Unconverted portion of 150 million 350 convertible note only potential debt repayment over next five years 300 Debt…
Other financial matters Internal PRRT assumptions identify the Cooper Basin as a single project Single project status would potentially result in no PRRT liability for an extended period Carbon tax implications included in…
Cooper Basin Western Flank Mike Dodd Exploration and Development Manager Investor morning 5 December 2012 Slide 24
Western Flank oil Western Flank oil is a core contributor to Beach due to: Sales in Brent High net back per barrel of A80* (including opex, royalties and transportation costs) Strong equity positions in significant and prospective…
Investment in infrastructure 2013 net production target of 9,000 to 10,000 bopd from the Western Flank Investor morning 5 December 2012 Slide 26
Western Flank exploration Beach Operated Western Flank - Creaming Curve 30 25 Cumulative EUR - Millions of Barrels of Oil 20 15 Cum EUR 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24…
PEL 91 Beach 40% (operator), Drillsearch 60% Bauer potential recoverable oil of 10+ MMbbls Current production of 1,000 bopd (gross) from two wells targeting 3,000 bopd+ (gross) with increased trucking Hanson facility expected to be…
Bauer oilfield appraisal Post Bauer-1 Post Bauer-9 Extremely successful and active appraisal campaign Investor morning 5 December 2012 Slide 29
Bauer oilfield well log GR Resistivity Porosity Average Namur porosity 28% Reservoir capable of high production rates Bauer-1 free-flow at 15,000 bopd during 80 minute flow test Oil-water contact A very high quality…
PEL 92 Beach 75% (operator), Cooper Energy 25% Current gross production of 5,000 bopd Gross production expected to recommence at 7,000 bopd with commissioning of Lycium- Moomba trunkline Rincon 3D to delineate the Rincon discovery…
PEL 92 prospectivity 100 90 FY Success Rate 80 Yearly PEL 92 Success Rate (%) PEL 92 Average Success Rate 70 60 50 40 30 20 10 0 FY03 FY04 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 EUR of oil discoveries to…
Windmill-1 DST recovered 25 barrels of oil Discovery has extended Birkhead play fairway 20 kilometres south into PEL 92 First PEL 92 Birkhead discovery Investor morning 5 December 2012 Slide 33
PRL 15, PEL 104 and PEL 111 Beach 40%, Senex Energy 60% (operator) Focus on the Birkhead formation Current gross production of 6,000 bopd from Growler and 250 bopd from Snatcher Mustang-1 being prepared for EPT Growler-Lycium…
PEL 106B and PEL 107 PEL 106B Beach 50% (operator), Drillsearch 50% First production in FY12 from the Middleton / Brownlow production licence Initial gross flow rates of 25 MMscfd (15 TJd sales gas and 325 bbld LPG and condensate)…
International assets Tanzania Egypt Romania Simon Brealey New Ventures Country Supervisor Investor morning 5 December 2012 Slide 36
Tanzania Lake Tanganyika South Block A significant acreage position in the prospective East African Rift Investor morning 5 December 2012 Slide 37
2D seismic survey Natural oil seeps in Lake Tanganyika indicate a working petroleum system South block area 7,200 km2 Potential for large discoveries ( 200 MMbbl) Airborne gravity and hi-resolution aeromag data acquired in 2010…
Lake Tanganyika South Block potential play types Potential targets from recently acquired 2D seismic, red = gas, green = oil Direct hydrocarbon indicators consistent with an active petroleum system Investor morning 5 December 2012…
Egypt A balanced portfolio of assets with growing oil production Investor morning 5 December 2012 Slide 40
North Shadwan - geological cross section Investor morning 5 December 2012 Slide 41
377 and 385 oilfields Miocene sands draped over older highs (lacking reservoir) On-shore to off-shore developments 377-3 intersected 145 metre oil column and cased as first production well for field 377-5 intersected 107 metre…
Abu Sennan stratigraphic column ABU ROASH Classic Abu Gharadiq Basin oil source and ultimate top seal. Very high chance of oil accumulations but with low deliverability 250 bopd BAHARIYA - Primary sandstone reservoir in Western…
Abu Sennan concession Beach 22%, Kuwait Energy 50% (operator), Dover Investments 28% Four exploration wells successful, with combined total gross flow rate of 12,000 boepd (gross) New three well exploration program approved:…
Abu Sennan 3D seismic line (with hypothetical well) N S Appollonia Top Khoman Base Khoman Bahariya Kharita Alamein Dol Jurassic Initial drilling campaign has encountered shows and/or pay at all named formations…
The Mesaha graben Mesaha graben initially believed to be a Mesozoic rift graben, two thirds the size of the Gulf of Suez No previous exploration drilling 2,900 kilometres of 2D seismic with 5-10 kilometre line acquired 220km…
Mesaha 1 well location Pre-Hercynian section can be characterised by two intervals: Transparent package Top Aptian Reflective package Mesaha-1 spudded late October Hercynian Unc Designed to test the stratigraphy on flanks of a…
EGPC international bid round 2011 El Qaa Plain bidding group: Beach 25%, Dana Petroleum (operator) 37.5% and Petroceltic 37.5% Total area of 1,823 km2 1,519 kilometres of 2D seismic by BP and Conoco in early 80s 11 wells drilled…
Romania Est Cobalcesu block Post Beach farm-in: Beach 30%, Melrose 40% (operator), Petromar 30% Est Cobalcescu block is 1,000 km2, with 3D seismic over block being processed Water…
Est Cobacescu - Multiple Exploration Play Types Oil play Gas play Ana/Doina Type Olimpiskaya Type Cobalcescu Type Domino Lebada Type Source Kitchen Investor morning 5 December 2012 Slide 50
ExxonMobil Domino-1 discovery N Est Cobalcescu Domino 1 S N S Investor morning 5 December 2012 Slide 51
Cooper Basin Unconventional exploration Mark Pitkin Team Leader Unconventional Resources Investor morning 5 December 2012 Slide 52
Cooper Basin unconventional exploration What was planned for our unconventional exploration well program and stimulation design Learnings from Holdfast-1 and Encounter-1 What we are now doing differently Current activity and…
Cooper Basin (Nappamerri Trough) Investor morning 5 December 2012 Slide 54
Nappamerri Trough historical stimulation results Fracture stimulation important in accessing and commercialising shale and tight gas Bulyeroo-1 (1995) and Kirby-2 (2000) stimulated in the shallower Toolachee High treating…
Planning for Success Key considerations Action/contingency/monitoring High treating pressures 13,000 psi capability 4 string in 7 casing, 5,000 psi on annulus High NWBPL Cement solubility Acid spearheads, gel slugs, proppant…
Treatments placed in Holdfast-1 Typically 30,000 lbs 100 mesh 140,000 lbs ISP 100,000 gal FR water 150,000 gal linear or x-linked gel SPE 160307 Observations 30/50 difficult to place without x-link 40/70 placed with little…
Treatment overview and diagnostics Pumping conditions A 20000 400 Gauge BH eqn (psi) B Slurry Rate (bpm) A S1 Actual Bottomhole Temp (F) C BH Proppant Conc (lb/gal) B D C 100 D 10 Pumping rates between 40 bpm Initial…
Maximum horizontal stress orientation Derived from Holdfast-1 break out and drilling induced tensile failure information Maximum horizontal stress in Cooper Basin principally EastWest Reference: SPE 160307 (adapted from…
Monitoring fracture orientation - tiltmeters Stress environment suggests Shmin Sv Wells spaced 10-20 kilometres apart, down-hole microseismic not possible Tiltmeter provided option to resolve horizontal and vertical…
Tiltmeters driving our horizontal orientation Holdfast-2 Reference: SPE 160307 First use of new technology in Basin, immediately applicable results Investor morning 5 December 2012 Slide 62
New well design for next generation of wells Tapered mono-bore consistent with North American designs used in Haynesville Same design for vertical and horizontal wells Enables high rate multi stage stimulation Opportunity to…
Moonta-1 and Streaky-1 stimulation Staged evaluation 8-9 zones stimulated in the thick basin- centred tight gas play 1-2 zones in the Murteree to assist with horizontal well optimisation 80 bpm injection rates achieved, planned…
Fracture stimulation stages Investor morning 5 December 2012 Slide 65
Near-term unconventional deliverables Complete fracture stimulation of Streaky-1, estimated to take one more week Mill out plugs, install tubing and flow test Streaky-1 by mid-December 2012 Fracture stimulate 15 zones in…
SACB JV & SWQ JVs and Infrastructure Gordon Moseby General Manager Business Review and Planning Investor morning 5 December 2012 Slide 67
SACB JV and SWQ JVs Significant equity interest in the SACB JV (Beach 20.21%) and SWQ JVs (Beach 20-40%) Area covered by JVs 26,800 km2 JVs equity interests include: Moomba and Ballera processing facilities All gathering systems…
SACB JV unconventional program Testing the western margins of the Nappamerri Trough Investor morning 5 December 2012 Slide 69
Moomba-191 update Initial flow rate 3 MMscfd Average flow rate over first month 2.7 MMscfd Early stage recovery estimates are 1.5 bcf Indicates continuation of unconventional gas trending West of PEL 218 in the Nappamerri…
SACB JV infill drilling program Resource to reserve conversion drivers: Infill drilling 40 vs 200 acre spacing Infill drilling with denser well spacing moving towards 40 acres More focused fracture stimulation of individual zones…
SACB JV gas growth project Cost reduction initiatives Multi-well pad drilling technology 4 rigs by 2014 SIMOPS approach to drilling, completions and connections 30% production growth to 2015 leads to step- change in cost…
Cooper Basin unconventional gas infrastructure SACB JV Moomba-191 tied-in within weeks Beach operated Targeted pilot production phase (2013-15) Potential to process through existing SACB JV infrastructure Subject to negotiation with…
Close Reg Nelson Managing Director Investor morning 5 December 2012 Slide 74
Appendices Investor morning 5 December 2012 Slide 75
Things you can find in your own backyard A relatively under-explored part of the Cooper Basin with enormous potential Investor morning 5 December 2012 Slide 76
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:…
Otway and Gippsland basins Otway gas and liquids Beach 35-67% Conventional plays proven gas, condensate and oil discoveries Casterton main source rock, Map with troughs shown and with most attractive permits outlines…
Contact Information 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 General Manager Investor Relations Tel: +61 8 8338 2833 Mob: +61 8 (0)487 173…
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