24 / 25 SEPTEMBER 2019 VICTORIAN OTWAY BASIN SITE VISIT
OT W AY B A S I N S I T E V I S I T 2 4 S E P T E M B E R Session 1: Introduction
Our vision, purpose and values Our vision We aim to be Australias premier multi-basin upstream oil and gas company Our purpose To deliver sustainable growth in shareholder value 4
Beachs portfolio FY19 production Taranaki Basin Western Bass Flank Basin 29.4 MMboe Otway Cooper Basin Basin Perth Basin FY19 2P reserves Taranaki Basin Western Bass Flank Basin Otway 326 Basin MMboe Cooper…
Beachs corporate strategy Optimise Strengthen Pursue Maintain Our People our operated and non- our complementary gas other compatible growth financial strength and culture operated producing assets businesses opportunities FY20…
Five year outlook updated at FY19 results Accelerated production growth via highly value-accretive investment Beach is targeting 3440MMboe and cumulative free cash flow2 by accelerating investment in annual production in the of more…
Victorian Otway Basin Overview Victorian Otway Gas Assets comprise: Otway Gas Plant, 10 km from Pt. Campbell FY19 production Producing gas fields: Vic Otway Basin o Thylacine 8.4 MMboe o Geographe 29.4 MMboe o Halladale Rest of…
Victorian Otway is pivotal to Beachs strategy Beach plans to develop its Otway Basin represents 19% of Refilling the hopper through undeveloped 2P reserves over Beach 2P reserves and 27% of value-accretive exploration the next 5…
The role of the Victorian Otway assets in Beachs strategy Victorian Otway assets are Beach plans to invest 600 At capacity, the Otway Gas Plant expected to contribute million in the Vic Otway Basin, can meet 15% of Victorian peak…
Why are we investing in the Victorian Otway Four years since last well drilled and three years since last well connected Otway Gas Plant output1 (TJ/day) 250 Halladale and Speculant brought Facility Capacity = 205 TJ/d online in…
Positive exploration track record 100% success to date in Beach-operated acreage with seismic amplitude support Well Name Year Amplitude support Success La Bella-1 1993 Yes Yes Geographe-1 2001 Yes Yes Thylacine-1 2001 Yes Yes…
Increasing exposure to market pricing Legacy contract pricing to end in FY21/22, exploration and La Bella adds flexibility Otway Gas Plant gas production outlook (100% interest)1 Increased Otway Gas Plant output to 70 coincide with…
Beach East Coast gas portfolio Otway gas an important component in Beachs portfolio Beachs East Coast gas portfolio comprises gas Re-contracted / re-priced volumes from: o Otway Basin assets 100% o Bass Basin assets 90% 80% o…
OT W AY B A S I N S I T E V I S I T 2 4 S E P T E M B E R Session 2: Progress since Otway acquisition
Priorities and outcomes since Beach acquisition Priorities Outcomes People Functional operating model to promote technical excellence Functional operating model now in place Build out offshore capabilities to support offshore programs…
Progress under Beach ownership February 2019: June 2019: January 2018: November 2018: Awarded VIC/P73 Commence Lattice Contracted Ocean containing SA Otway acquisition Onyx semi- La Bella gas field drilling completed submersible…
Beachs functional operating model Development and Exploration & Appraisal teams for Otway development program Geoff Barker Jeffrey Schrull Group Executive Group Executive Development Exploration & Appraisal 30+ years experience…
Otway Basin seismic reprocessing and remapping 19
Otway Basin data review since acquisition Integrated workflows targeting exploration and development opportunities Seismic Lower subsurface risk Legacy 3D seismic surveys in the offshore basin reprocessed into a Super Cube over 9,000…
Otway Basin data review since acquisition New data fundamentals in place A A Enterprise- Minerva-1 Artisan-proposed Thistle-1 Geographe Geographe-1 Thylacine-1 Thylacine-2 proposed North-1 In-house and external reprocessing of…
Otway Basin data review since acquisition Thylacine remapped leading to optimised well locations Thylacine gas field currently producing from four wells Current deliverability 50 TJ/day Four new development wells planned as part…
Otway Basin data review since acquisition Artisan and Hercules Artisan-1 SSE NNW Artisan, a low risk exploration - prospect, will be the first well drilled in the offshore campaign Super Cube seismic data allows other…
Otway Basin data review since acquisition La Bella discovered gas field provides optionality Permit VIC/P73 containing the La Bella gas field was acquired as part of government gazettal round in February 2019 for 4 million Gross 2P…
Otway Basin data review since acquisition Further exploration potential - T/30P and beyond T/30P prospect and lead portfolio being refreshed utilising Super Cube data o Portfolio currently being matured for drilling o The T/30P…
OT W AY B A S I N S I T E V I S I T 2 5 S E P T E M B E R Session 3: Otway Gas Plant
Beachs functional operating model HSER team Brett Doherty Group Executive HSER 30+ years experience Rasgas, Inpex Head of Operations Head of Head of Head of Corporate Risk Head of Health & Safety Head of Environment…
Pacesetting HSER performance achieved through Organisation Modelled on established industry practice, yielding HSE independence and significant discipline experience. Entire Division recruited to provide HSE expertise across all Oil…
HSE&R - 5 Year Vision and Strategy 5 Year Vision: Zero incidents achieved and maintained Strategy of continuous improvement year on year 15% Reduction strategy leverages: Safety Annual KPIs and Targets Internal Inputs…
Operational excellence Delivery of value through safe, reliable and efficient operations People Performance HSE Process & and risk technology 31
Beachs functional operating model Production Division : Victoria - Otway Dawn Summers Chief Operating Officer 25+ years experience BP, Genel Energy, Origin GM Victorian GM Technical Services GM Production, Planning GMs of…
Operational excellence Delivery of value through safe, reliable and efficient operations Reliability Operating costs 98% reliability across all operating assets Sustainable reduction in direct operating costs of Key goals greater…
Operational excellence Improving base production using industry best practice & technology Productivity Application at Victorian Otway Advanced Process Control Best practice start-up times and reduced downtime Process…
Operational excellence Driving a sustainable reduction in direct operating costs Operating Cost Application at Victorian Otway Drone technology - Offshore Platform Inspections Advanced Inspection Advanced Digital Radiographic…
The Otway Gas Plant The Otway Gas Plant is located onshore near Port Campbell, Victoria It processes commingled raw gas from the Thylacine, Geographe, Halladale and Speculant gas fields, into sales gas, LPG (propane and autogas)…
Facilities overview OGP connection to the gas grid The Otway Gas Plant is strategically located close to key infrastructure: o Iona gas storage facility o SEA Gas pipeline (to Adelaide) o South-west pipeline (to Melbourne)…
Otway Gas Plant process flow diagram 38
OT W AY B A S I N S I T E V I S I T 2 5 S E P T E M B E R Session 4: Development plans
Our forward development program Indicative drilling timeline FY20 FY21 FY22 ERD program Rig: Ensign 931 Black Watch-1 Enterprise-1 Offshore program Rig: Ocean Onyx Development drilling Development drilling Development…
Nearshore - starting close to home Lowest development costs Ensign 931 rig secured for ERD drilling program Same rig was used to drill Halladale and Speculant development wells Rig is currently drilling Dombey-1 in SA Otway Basin…
Black Watch-1 to be drilled from Halladale well pad 42
Halladale as a template - Black Watch as follow up Halladale delivered: Halladale/Speculant online rate 80 MMscf/d High production rates maintained by pressure support/recharge 2P reserves increased by 3.6 Bcf (net) FY19 due to…
Enterprise exploration well Low risk, high value exploration target in a proven play Enterprise-1 Enterprise-1 Enterprise 7 km from Minerva in proven Waarre play New Super Cube tied to proprietary transition zone data allows…
Ocean Onyx semi-submersible rig Ocean Onyx semi-submersible rig contracted in December 2018 for the offshore Otway Basin drilling program Ocean Onyx is currently undergoing upgrades in Singapore Upgrades are required to handle the…
Otway offshore scope Schematic shows how the seven offshore development wells and Artisan exploration well (success case) would be connected to the existing offshore infrastructure o Geographe wells are connected with short…
Our plan is to fill the Otway Gas Plant and keep it full with the lowest unit technical cost gas Otway Gas Plant gas production outlook (100% interest)1 Output to progressively ramp up as wells connected and tied in, commencing…
Growth potential (debottlenecking) Beach undertaking review of facility constraints Evaluating options for increasing throughput above current capacity limit of 205 TJ/day Range of low to higher cost and capacity addition…
Key takeaways 1. Safety takes precedence in everything we do 2. Vic Otway is a strategically important asset to Beach and East Coast gas market o 15-20% of Beach 2P reserves, 5 year investment and production, Vic winter gas demand…
OT W AY B A S I N S I T E V I S I T Appendices
Otway Basin History of asset and commercial activity Year Asset Activity Year Commercial Activity Initial joint venture for development of Thylacine and 2001 Gas discovered at Thylacine and Geographe Geographe: Woodside Energy…
Beach Energy Limited Level 8, 80 Flinders Street Adelaide SA 5000 Australia T: +61 8 8338 2833 F: +61 8 8338 2336 beachenergy.com.au Investor Relations Nik Burns, Investor Relations Manager Mark Hollis, Investor Relations Advisor T: +61…
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