Beach Energy Limited On the Road to Future Growth Wilson HTM Energy Conference Sydney, 20 April 2010 Neil Gibbins General Manager Exploration and Development 1
Todays presentation Overview of Beach Energy Limited Strategy Base business Growth potential Positioning for long- term growth What Where How 3
Corporate framework 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…
Next two to five years Exploration Development Growth Growth Oil & gas discoveries in Develop large contingent Cooper with aim to add up to conventional gas resource of Goal: 20 MMboe new reserves approx. 500 PJ already booked To…
Transformational opportunities Exploration Development Growth Growth Develop large Goal: Oil exploration in Cooper contingent shale gas and unconventional gas in To transform via Cooper & other resource in Cooper large…
Reserves & resources snapshot: 30 June 2009 2P Reserves: 2P Reserves & Contingent 66 MMboe Resources: 359 MMboe 2P Reserves are a fraction of the total resource base Cooper / Eromanga Gippsland Egypt Cooper / Eromanga 2P…
Reserves and production Production 2P Reserves 10 160 9 140 8 120 7 100 6 MMboe MMboe 5 80 4 60 3 40 2 20 1 0 0 FY 2007 FY2008 FY 2009 FY 2010 FY 2006 FY2007 FY 2008 FY 2009 est. Gas & Gas Liquids Oil Gas &…
The base business: Cooper Basin production, development & exploration Cooper Basin is a key supplier of onshore oil and gas to eastern Australian markets: Diversified asset, product and market mix Beach participates in…
The base business: Conventional Cooper Basin oil & gas Cooper Basin Oil Cooper Basin Gas 2P reserves 14.3 MMbbl 2P reserves 228 PJ & 7.4 MMboe Comprised of three key areas: Gas & ethane contracts with major Western flank (Beach…
The base business - Gulf of Suez: First oil within months Beach 20% interest High potential Gulf of Suez acreage Three existing oil discoveries: NS 377 and 385 (near shore fields) NS 394 Burtocal First oil expected Q3 2010…
Finding more oil in Egypt Highly prospective region Long established industry - favourable legislative & fiscal regime Home to giant oil fields (500 - 800 MMbbl) such as Morgan, July & Ramadan Extensive infrastructure Low…
The base business - Gippsland Basin: Maximising economic potential Reserves still under review Gas development potential still remains Exploration upside exists for oil & gas FPSO contract up for renewal January 2012…
Expanding the base business: Positioning for long-term Australian gas supply Beach is seeking to grow its base gas business in eastern Australian markets from the Cooper Basin Good long-term growth opportunities for eastern…
Cooper Basin: Significant shale gas potential Early identification of Cooper Basin shale gas potential Captured prospective acreage with high equity participation Huge resource potential: Comparable to combined NSW and…
Nappamerri Trough: Potential gas in place greater than 200 Tcf Over pressured zone Extensive and thick shale packages Similar properties to the best US shale plays Nappamerri Trough total area 10,000 km2 Potential gas in…
Why the Nappamerri Trough Geological properties Thick shale sequence 150m thick over 10,000 km2 Organically rich 5% Total Organic Carbon (TOC) Gas prone Proven Thermally mature Proven Overpressure Proven Tight gas sands Potential…
Cooper Basin shale gas: Indicative shale gas development timeline Pilot BOOK FIRST GAS Holdfast-1 production Pilot SALES Design pilot BOOK GAS GAS vertical well development production RESOURCE RESERVE exploration well Q2 well…
Nappamerri Trough: Geographical context vs US basins Cooper Basin Nappamerri Trough 19
US technology improvements drive down costs: e.g. - Bakken Shale Technology advancements in Bakken Shale (oil), North Dakota multi stage frac completions is driving efficiencies in US oil 40 & gas developments 35 30 Key…
Cooper Basin shale gas: Similar to best US plays Parameter Cooper Basin Barnett Haynesville Nappamerri (Texas) (Louisiana) Trough Depth (ft) 9500 - 11500 5400 - 9600 10000 -13000 Thickness (ft) 400 - 500 250 - 500 200 300…
Multiple long-term shale gas market options Good prospects to increase Existing Cooper Basin supply over time customers extension contracts New domestic gas supply Existing opportunities include: customers Export LNG…
When will Cooper Basin shale gas value recognition occur Some recent US shale gas transactions Deal Location Date Value Mitsui - Anadarko Marcellus Feb 10 US1.4b Total - Chesapeake Barnett Jan 10 US2.25b ExxonMobil XTO Energy…
Some other long-term growth opportunities: Big oil and big gas Papua New Guinea Tanzania Australia New Zealand 24
Tanzania - East African Rift: An emerging big oil province Beach 100% Under - explored, high potential region Significant success in nearby analogous areas (Uganda) Recent M&A activity in Uganda highlights regional potential…
Offshore big gas opportunities Browse Basin Gulf of Papua Canterbury Basin LNG supply potential from existing portfolio: Burnside (multi-Tcf discovery made in 2009, Beach 7.34%) Pandora (mean gas resource approx. 0.8 Tcf, Beach…
Beach Energy Sustainable underlying base business: Long-life reserves Long-term production and cash-flow Asset, product and market diversity Tangible growth potential targeting regionally specific opportunities: Cooper Basin…
Beach Energy Limited On the Road to Future Growth Wilson HTM Energy Conference Sydney, 20 April 2010 Neil Gibbins General Manager Exploration and Development 28
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