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JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited

Beach Energy Limited · Jul 4, 2011 · 53 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. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 1
    Beach Energy Limited Evolution and Revolution Hong Kong 4&5 July 2011 Reg Nelson Singapore 6&7 July 2011 Managing Director Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 1
  2. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 2
    Overview Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 2
  3. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 3
    Beach Energy Limited - A unique value proposition Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 4
  4. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 4
    Key catalysts for 2011 Multiple near-term catalysts with material re-rating potential Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 5
  5. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 5
    Large Resource base to build Reserves 2P Reserves 2P Reserves & Contingent Resources 66 MMboe* 363 MMboe* 2P Reserves are a fraction of the total resource base Cooper / Eromanga Other Cooper / Eromanga 2P Other Material…
  6. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 6
    Solid production platform Beach Operated Western Flank Oil Gross Expected Ultimate Recovery (MMbbl) FY11 guidance of 6.5 MMboe* 12 Consistent Cooper Basin production 10 performance 8 Short-term opportunities for production…
  7. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 7
    Positioned for growth in Eastern Australian gas markets Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 8
  8. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 8
    Prolific acreage position Beach owns a strategic suite of assets and infrastructure, positioning it to supply gas for generations to come Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 9
  9. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 9
    Eastern Australian gas markets are growing Current domestic gas demand 715 PJ per annum: 100 PJ from Cooper Basin Domestic gas demand expected to grow to 1350 PJ by 2025*: Driven by power generation Higher demand scenarios…
  10. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 10
    Excellent prospects to increase Cooper Basin supply Strong predicted growth in Eastern Australian gas demand Strong predicted growth in Asian LNG demand Excellent channels to markets 2015+ opens up various domestic and export…
  11. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 11
    The impact of eastern Australian LNG projects Australian East Coast 2P Reserves* Two projects have achieved FID committing 16 mtpa capacity 7.0% BG Group 2.3% 18.7% Santos / PETRONAS 4.2% / TOTAL / Kogas BG Group has recently…
  12. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 12
    SACB/SWQ JV Significant long-term resource potential Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 13
  13. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 13
    SACB/SWQ JV Its importance to Beach Equity interests of approximately 20% for the SACB JV and 23% for the SWQ JV A significant land holding for these interests of approximately 22,000 km2 Situated in a proven and prolific basin…
  14. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 14
    SACB/SWQ JV Ultimate potential is significant Source: Santos Remaining gross unrisked resource potential of over 4 billion barrels of oil equivalent Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 15
  15. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 15
    SACB/SWQ JV - GLNG Project supply opportunity Discussions ongoing between SACB JV and Santos for the supply of 750 PJ to Santos GLNG Project*: Beachs share of supply would be 152 PJ 15 year contract - proposed to commence in 2014…
  16. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 16
    The Cooper Basin shale gas potential Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 17
  17. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 17
    A commanding Cooper Basin shale gas acreage position PEL-218 (Permian JV) potential shale gas in place 40-80 Tcf Similar properties to successful US shale plays Encounter-1 and Holdfast-1 both successful due to: Target zones either…
  18. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 18
    Advantages of PEL 218 shale acreage Semi desert country Strong relationship with one pastoral owner Thick target zone to yield more gas in place Fracture containment not an operational constraint Deep shale target zone at 3,400…
  19. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 19
    Fracture stimulation successfully completed Holdfast-1 fracture stimulation completed in seven stages Stages completed: Roseneath shale (3) Epsilon formation (2) Murteree shale (1) Patchawarra formation (1) Goals Design fracture…
  20. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 20
    Comparison to US plays Haynesville Parameter PEL 218 Permian REM Barnett (Texas) (Louisiana) Depth (metres) 2,900 3,500 1,650 3,000 3,050 3,950 Shale thickness 120 260 75 150 60 90 (metres) Total Organic Carbon 35 5 4 Av% Pressure…
  21. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 21
    Beach has core and flank Nappamerri acreage Shale gas plays cover thousands of square kilometres * Sweet spots (e.g., the core Haynesville) may exist particularly where the shale target zone is: In the deepest parts of the…
  22. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 22
    BG Group - Haynesville core economics* Average well recovery: 9 bcf Typical well (bcfpa) 3 BG net wells: 275 (2011-15) Average well cost: US9 million 2.5 (US1.0/mmbtu) Operating cost: US1.4/mmbtu 2 Unit technical cost:…
  23. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 23
    Goodrich - Haynesville type curve* Low (6.5 Bcfe) Base (7.5 Bcfe) High (8.5 Bcfe) IP rate (MMcf/d) 14.0 15.5 19.5 IP rate (30 day avg. MMcf/d) 10.0 11.0 15.5 Gross EUR (Bcf) 6.5 7.5 8.5 Pretax IRR 20% 30% 49% F&D (/Mcfe) 1.87 1.62…
  24. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 24
    Shale gas - Cost reduction driven by.. Rate MMCFD: Conventional (24-28/64 choke) vs optimised (14/64 choke) Technology Multi-stage fracture stimulation techniques Pad drilling Techniques Restrictive choke techniques being adopted…
  25. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 25
    Next steps and indicative timeline With successful proof of concept: Design pilot horizontal wells targeting highest yield zones in REM Drill further vertical delineation wells across acreage Expand production pilot to multiple wells…
  26. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 26
    Dominant Western Flank oil acreage position Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 27
  27. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 27
    Cooper Basin Western Flank Oil Western Flank oil is a core contributor due to: High net back per barrel (total opex including transport and royalty of approx. 25/barrel) Strong equity positions Quick drill and tie-in periods…
  28. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 28
    Western Flank drilling program Beach operated Five exploration wells in PEL 91 (Beach 40%) Eleven wells in PEL 92 (Beach 75%), five exploration and six development/appraisal wells Success rate to date is 64% from eleven wells…
  29. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 29
    Birkhead Formation Channel Sand Source Senex, 2011 Birkhead channels can be imaged on seismic, significantly reducing risk Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 30
  30. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 30
    Big oil potential, Tanzania Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 31
  31. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 31
    Lake Tanganyika, Tanzania East African Rift Beach 100% Underexplored area with high potential Lake Tanganyika South acreage is approximately 7,000 km2 Potential for large ( 200 MMbbl) discoveries: Natural oil seeps on Lake…
  32. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 32
    Lake Albert, Uganda major success to date Tullow identified this East African rift basin opportunity in 2001 Lake Albert area approximately 5,300km2 The Lake Albert rift basin is part of a string of Pliocene-Miocene age rift…
  33. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 33
    Lake Tanganyika natural oil seeps Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 34
  34. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 34
    Lake Tanganyika South vs Lake Albert - Analogy Lake Tanganyika South Seismic Line 2D Lake Albert Seismic Line 3D 1.5 sec - 2.0 sec - 2.5 sec - Deeper water in Lake Tanganyika Source: Beach Energy Ltd Project Probe…
  35. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 35
    Lake Tanganyika North Gazettal tender Tanzanian government recently gazetted the Lake Tanganyika North block Similar potential to South block based on available seismic A competitive gazettal process with nine companies…
  36. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 36
    Egypt Established and growing portfolio Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 37
  37. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 37
    Egypt overview Beach interests range 15 22% An established and growing portfolio Exposure to prolific and emerging hydrocarbon basins: Portfolio of near-term development & exploration opportunities North Shadwan expected to…
  38. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 38
    Abu Sennan concession Beach 22% 3D seismic coverage over whole concession which has been the key to success for Apache in the surrounding tenements Apache recently acquired tenements from BP adjacent to Abu Sennan Initial six…
  39. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 39
    Gulf of Suez 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 in 2011 North Shadwan delays due to pipeline operator…
  40. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 40
    Mesaha concession Beach interest 15%* One of the largest concession areas in Egypt at 57,000km2 Wildcat basin with the right ingredients Possible rift basin similar to Gulf of Suez/Lake Albert/Lake Tanganyika Potential for very…
  41. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 41
    Appendices Beach Energy Limited, Asian Roadshow 4-7 July 2011 Slide 42
  42. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 42
    Australian pipeline growth Pre - 1995 Post - 1995 Approx 10,500 km Approx 20,000 km Point-to-point pipelines Interconnected pipelines Majority government owned Privatisation Source: APA investor presentation, April 2010 Beach…
  43. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 43
    The importance of REM section for shale & tight gas Thick target section Gas charged Over-pressured Favourable mineralogy Lacustrine play, with similar litho/geochem properties to North American marine shale plays Key…
  44. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 44
    Nappamerri Trough thick Early Permian shale sequence Shale play thickness: Roseneath 80-200 metres Epsilon 100 metres Murteree 80 metres Over-pressured tight gas play: Epsilon mid and basal zones sandier Patchawarra multiple…
  45. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 45
    PEL 218 Shale - Favourable mineralogy 100 0 Barnet Haynesville 40-60% Clay: Eagle Ford Utica Nappamerri Similar to Barnett and Haynesville 80 20 Barnet Eagle Ford Haynesville 10-20% Carbonate: Utica Sil 60 40…
  46. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 46
    PEL 218 Shale - Over-pressured at REM level Pressure (psi) Formations outside Trough 0 0 2000 4000 6000 8000 10000 Normally pressured - hydrostatic gradient All 0.43 psi/ft 1000 Exploration wells in Trough Regional pressure…
  47. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 47
    Western Flank oil - Namur Sandstone PARSONS-1 Namur Sandstones plays: Widespread high net to gross braided channel environment Subtle structures delineated on 3D seismic data Very high permeability Parsons-3 clean up flow 5,200…
  48. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 48
    Western Flank oil - Birkhead Formation Channel Sand Growler 3 Birkhead Sandstones plays: Deposited in meandering channels Do not necessarily rely on structural traps can be extensive accumulations Can be imaged on seismic data…
  49. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 49
    Tanzania Attracting the majors Various phases of exploration undertaken since 1952 with very few exploration wells drilled Early wells drilled with poor quality or inadequate seismic control Tanzania has now attracted attention…
  50. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 50
    Rift systems - Gulf of Suez vs Lake Tanganyika Gulf of Suez: Gulf of Suez Lake Tanganyika Rift valley system Area approximately 9,000km2 800+ exploration wells drilled 9.5 billion barrels of oil discovered Lake Tanganyika Rift…
  51. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 51
    Lake Tanganyika South play types Typical rift graben/half graben geometries Seismic indicates large structures with bounding faults Play types are: Stratigraphic traps Fault traps Three way structured traps against basement…
  52. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 52
    Lake Tanganyika South Beach exploration program Eleven year PSA structured into phases of 4 + 4 + 3 years Phase 1 minimum commitment expenditure of US7 million One exploration well required in Phase 2 & Phase 3 Phase 1 planned…
  53. JULY 2011 CORPORATE PRESENTATION – Beach Energy Limited – slide 53
    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 2833…

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