Beach Petroleum Limited Macquarie Securities Australian Conference Reg Nelson Managing Director, Beach Petroleum May 2007
Summary Company profile Five year performance Key projects Growth opportunities and outlook 2
Beach Petroleum Limited Company Profile May 2007
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…
Corporate Structure & TSR Shareholder Return Issued Shares & Options 100% Total Shareholder Return 90% 80% 70% 884.0 million ordinary shares 60% 50% 40% 86.00% 30% 64.00% 50.00% 20% 35.00% 8.1 million employee options…
Key Revenue Earning Projects Cooper Basin: Oil, gas and liquids over 200 fields Long-term gas contracts Oil production forecast to increase 500 KM through Cooper Oil Project Moomba hub connects to eastern seaboard pipeline system…
Reserves -- 30 June 2006 Proved and Probable Reserves Area Gas 500 KM Oil Oil Liquids Sales Gas Equivalent (mmb) (PJ) (mmboe) (mmboe) MT ISA Cooper 11 7 298 70 GLADSTONE Gippsland 20 - - 20 70 PJ BALLERA MOOMBA JACKSON…
Reserves & Upside Potential 120 Oil Search 100 Beach Petroleum OSH BPT 80 AWE ROC AWE AZA 60 HDR AED IPM Beach has upside exposure ROC 40 TAP AMU to c.65mmboe of additional reserves in existing Hardman ARQ 20…
Beach Petroleum Limited Proven Ability to Perform May 2007
Historical Growth: 2002 to 2006 160 60 million million 140 50 120 40 100 80 30 Earnings Before Gross Revenue Interest & Tax 60 20 40 20 10 0 0 FY02 FY03 FY04 FY05 FY06 FY02 FY03 FY04 FY05 FY06 45 1.5 million 40…
Beach Petroleum Limited Key Development Projects: BMG (Offshore Gippsland) Oil & Gas Cooper Oil, Gas & Gas Liquids Queensland Coal Seam Gas May 2007
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…
BMG: Increase in Reserves Basker Field appears to be much larger than first prognosed Implications are more oil & much more gas-condensate than expected Wells drilled to date tend to be nearer the crest of the field than…
BMG: Current Status Current Status Production Commenced 17 December. Higher than expected GOR (2,000 actual vs 1,200 expected) probably due to wells located higher on a much larger structure. Operational issues, primarily…
BMG: Current Status Status at 19 April 2007 Producing from Manta-2A, Basker 2, 3 & 5. Gas being injected into Basker-4 (32 mmcfd) Medium term target 15- 20,000 bopd 15
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…
BMG: Gas Development Plans Conditional Gas Sales Agreement with Alinta for Tasmanian power generation (225 PJ over 15 years) Aiming for Project sanction 2nd Quarter 07 - startup 2009 Drill up to 3 wells in Manta & Gummy Fields…
Cooper-Eromanga Basin: Strong Profitability High Netback Oil Production Production for the first half year of FY07 was 0.9 mmbbl (approx. 50% from Beach-operated and 50% from Santos-operated) Average netback of AUD53.73/bbl at…
Cooper-Eromanga Basin: Highlights FY07 to Date Callawonga Oil Discovery Online in Nov 1,000 bopd (net) Reserves 1 mmb (net to Beach) Cooper Oil Project Success (18 wells drilled, 16 successful - 89% success rate) 20
Cooper Oil Program (COP) Development & Appraisal Program operated by Santos in existing oil fields Average Beach equity is 25% (but 38.5% of Naccowlah Block) Targeting reserves replacement (net to Beach) of 13 mmb over 3 to 5…
COP NETBACK SENSITIVITY ANALYSIS COP economics are robust with prevailing oil prices AUD/bbl 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 20.00 27.00…
COP Rationale 700 mmb Original Oil In Place (OOIP) in existing Cooper Basin fields Ultimate recovery expected from existing wells 200 mmb (28% recovery factor) Aim to increase recovery factor by 5-15% additional 35-100 mmb Low…
COP Projections for 2007 Beach participating in drilling 130+ wells at an average interest of 25% Potential to yield reserves increase of 3 - 6 mmb p.a. from: Naccowlah Block-(Beach 38.5%) 24 wells (13 exploration, 11 dev &…
Tipton West Coal Seam Gas Beach 40% Proved & Probable (2P) reserves: 174 PJ Very large resource: Upside potential of 2,300 PJ Close to markets & pipelines High Exploration Potential 25
Tipton West Coal Seam Gas Phase 1 Development 82 wells Development Drilling Completed Gas Sales Commenced in February Target Rate 30 TJ/day Firm commitment recently upgraded to 10 PJ/yr for 15 years, with a further 7.3 PJ/yr put…
Beach Petroleum Limited High Impact Exploration Projects May 2007
High Reward Exploration Carnarvon (BPT 10%) Hurricane-2, Q2 07 Offshore Otway Basin (BPT 50%) Hurricane-2 Production Testing Champagne Creek (Surat) Offshore New Zealand 3D Seismic Barque-1 28
Present Drilling Targets FY07-08 Project Area Targets BPT % Comments Timing Offshore Hurricane-2 10 % Target 40-50 mmbbl oil May 2007 Carnarvon potential Offshore Otway Fermat-1 50% Target 1 TCF gas 3D Seismic Q1 potential…
Offshore Otway Basin - Gas Beach 50% Casino Gas Field Target size: approx. 1 TCF gas Approx. same scale Fermat Prospect 31
Large Gas Liquids Potential New Zealand Beach 20% Lightly explored Sub-commercial gas/condensate discovery (Galleon-1) Barque Significant upside potential Barque Prospect potential for 6 TCF of gas + 500 million barrels of…
Large Gas Liquids Potential Browse Beach 10% Close to Brecknock, Scott Reef and Brewster discoveries 33
Geothermal Exploration Beach farming in to earn 21% interest in 4 geothermal exploration licences in SA Contribute up to 10 million to drill 1 -2 wells to demonstrate hot rock energy resource Can contribute a further 20 million…
Beach Petroleum Limited Growth Opportunities & Outlook May 2007
Strategies Build gas portfolio around eastern seaboard pipeline network wLNG Potential Entry into projects with LNG potential at ground floor LNG Potential Greater exposure to high reward exploration Australia and…
Production Cooper Oil Program expected to build oil production significantly from 2008-2010 Beach-operated Cooper oil expected to continue to produce at 1mmbbl p.a. or better over the next 3-5 years - with good likelihood of continued…
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…
What Sets Beach Apart 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) Attitude Commitment to reward…
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