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Non Deal Roadshow Presentation – Beach Energy Limited

Beach Energy Limited · Feb 28, 2014 · 63 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. Non Deal Roadshow Presentation – Beach Energy Limited – slide 1
    Non-deal roadshow presentation 1
  2. Non Deal Roadshow Presentation – Beach Energy Limited – slide 2
    General overview 3
  3. Non Deal Roadshow Presentation – Beach Energy Limited – slide 3
    Beach Energy A company that puts safety, people and the environment first Global oil and gas explorer and producer with unrivalled cash generation amongst its peer group Prudent portfolio manager Will seek to. Deliver consistent…
  4. Non Deal Roadshow Presentation – Beach Energy Limited – slide 4
    Key facts ASX 100 company with a market capitalisation of A2.0 billion1 Largest Cooper Basin oil producer, sixth largest in Australia Strong balance sheet with cash of 404 million2 Undrawn secured debt facility of A300…
  5. Non Deal Roadshow Presentation – Beach Energy Limited – slide 5
    Australian focused Largest onshore oil producer in Australia with world class margins Strategically positioned as an independent upstream gas producer Gas markets transitioning to higher prices/oil linked contracts Strong…
  6. Non Deal Roadshow Presentation – Beach Energy Limited – slide 6
    Australian onshore oil production Australias largest onshore oil producer, with a strong inventory of Cooper Basin oil discoveries coming on-line in FY15 Sources: Recent half year and quarterly publicly available company…
  7. Non Deal Roadshow Presentation – Beach Energy Limited – slide 7
    Sources and uses of funds Sources and uses of funds assumptions: 404 million cash balance (as at 31 December 2013) Secured 300 million debt facility Operating cash flow forecast includes minimal exploration success Chevron Stage 2…
  8. Non Deal Roadshow Presentation – Beach Energy Limited – slide 8
    Operational overview 9
  9. Non Deal Roadshow Presentation – Beach Energy Limited – slide 9
    Reserves and contingent resources 2P: 93 MMboe 2P and 2C: 542 MMboe Gas and gas liquids Unconventional 71 MMboe Gas and gas liquids 2P reserves 319 MMboe 93 MMboe Oil 22 MMbbl Conventional Gas and gas liquids 113 MMboe…
  10. Non Deal Roadshow Presentation – Beach Energy Limited – slide 10
    Cooper Basin acreage Prolific gross acreage position of over 56,000 km2 generating 98% of current production 11
  11. Non Deal Roadshow Presentation – Beach Energy Limited – slide 11
    FY14 Half year operating results Actual and forecast production Production for HY14 of 5.0 MMboe, 9.6 MMboe up 25% to 9.2 MMboe Production mix: 47% gas and gas liquids, Gas* 2.4 MMboe 53% oil 8.0 MMboe to 2.1 MMboe Cooper Basin…
  12. Non Deal Roadshow Presentation – Beach Energy Limited – slide 12
    FY14 Revised capital expenditure guidance Potential recovery Seismic Capex additions* Wells ( million) 2D km 3D km2 MMboe DEVELOPMENT Cooper Basin non-SACB JV 55 60 10 13 Cooper Basin SACB/SWQ JV 200 220 50 International 10…
  13. Non Deal Roadshow Presentation – Beach Energy Limited – slide 13
    Key activities 14
  14. Non Deal Roadshow Presentation – Beach Energy Limited – slide 14
    Western Flank Cooper Basin 15
  15. Non Deal Roadshow Presentation – Beach Energy Limited – slide 15
    The Western Flank High net back for oil and wet gas Quick drill and tie-in High flow rates Excellent understanding of the geology Established infrastructure 250 kilometres of flowlines 10 facilities and five trucking points 40…
  16. Non Deal Roadshow Presentation – Beach Energy Limited – slide 16
    Average Western Flank net production (to date) Last eight months in excess of net 10,000 boepd from the Western Flank 17
  17. Non Deal Roadshow Presentation – Beach Energy Limited – slide 17
    PEL 91 Beach 40% and operator, Drillsearch 60% Current gross production 12,000 bopd, with further wells to be tied-in Successful appraisal wells have increased recovery: Bauer-12 Chiton-3 Three new fields expected on-line…
  18. Non Deal Roadshow Presentation – Beach Energy Limited – slide 18
    The Bauer oil field Bauer-12 appraisal well intersected a nine metre oil column: Four metres of McKinlay Member Five metres of Namur Sandstone Added 2.5 MMbbl (gross) of 2P reserves Currently producing from eight wells Bauer-9,…
  19. Non Deal Roadshow Presentation – Beach Energy Limited – slide 19
    PEL 92 Beach 75% and operator, Cooper Energy 25% Current gross production 6,000 bopd Callawonga-7 and -8, Windmill-1 and -2 development wells on-line, production add of 700 bopd Three/four exploration wells planned for Q2 2014…
  20. Non Deal Roadshow Presentation – Beach Energy Limited – slide 20
    PEL 104 and PEL 111 Beach 40%, Senex 60% and operator Focus on the Birkhead Formation Gross production of 4,300 bopd from Growler and Snatcher fields Anticipated program of 18 wells, of which 13 to be exploration/appraisal Further…
  21. Non Deal Roadshow Presentation – Beach Energy Limited – slide 21
    PEL 106 Beach 50% and operator, Drillsearch 50% Commercial discussions successful in establishing extended gas sales to March 2016 Liquids rich Canunda field operational since July 2013 Gross flow rate of 12 MMscfd (7 TJ per day…
  22. Non Deal Roadshow Presentation – Beach Energy Limited – slide 22
    Eastern Australian gas market 23
  23. Non Deal Roadshow Presentation – Beach Energy Limited – slide 23
    Prolific acreage strategically located Multi-basin portfolio to feed eastern Australian markets 24
  24. Non Deal Roadshow Presentation – Beach Energy Limited – slide 24
    Eastern Australian gas markets Strong predicted growth in Eastern Australian gas and Asian LNG demand Gladstone based export LNG projects have transformed the east coast gas market Projected gas supply is tight and demand strong The…
  25. Non Deal Roadshow Presentation – Beach Energy Limited – slide 25
    Upstream and downstream dynamics Equity molecules to equity projects Suppliers creating new markets via downstream investments Vertical integration driven by both domestic and export opportunities Depending on volume and…
  26. Non Deal Roadshow Presentation – Beach Energy Limited – slide 26
    Recent gas related transactions Origin Gas Sales Agreement Signed April 2013 139 PJ over eight years, potential to extend to 173 PJ over ten years Commencement date window for supply is July 2014 to June 2015 Beach is positioned…
  27. Non Deal Roadshow Presentation – Beach Energy Limited – slide 27
    SACB JV and SWQ JVs Conventional gas 28
  28. Non Deal Roadshow Presentation – Beach Energy Limited – slide 28
    SACB JV and SWQ JVs Significant acreage with substantial reserves base 20.21% in the South Australian Cooper Basin Joint Venture (SACB JV) and 20-40% in the South West Queensland JVs (SWQ JVs) Gross area covered by various joint…
  29. Non Deal Roadshow Presentation – Beach Energy Limited – slide 29
    Moomba processing facility Strategically located expandable facility Current daily capacity approximately: 300 TJ gas 35 kbbl oil/condensate 600 tonnes LPG Substantial gas storage system with capacity 70 PJ Gas supplied directly…
  30. Non Deal Roadshow Presentation – Beach Energy Limited – slide 30
    SACB JV gas growth project Drilling, including multi-well pad drilling, with five rigs operating SIMOPS approach to fracture stimulation 30% production growth to 2015 leads to step-change in cost reductions Production costs…
  31. Non Deal Roadshow Presentation – Beach Energy Limited – slide 31
    Cowralli multi-well pad drilling Multiple wells drilled from closely spaced surface locations 16 Cowralli wells drilled from two pads, completed in October 2013 32% reduction in average drilling and fracture stimulation costs over…
  32. Non Deal Roadshow Presentation – Beach Energy Limited – slide 32
    Unconventional gas Cooper Basin 33
  33. Non Deal Roadshow Presentation – Beach Energy Limited – slide 33
    Unconventional positioning Strategically targeted three key basins for unconventional acreage Cooper Basin activity: Nappamerri Trough Natural Gas with Chevron and Icon SACB JV unconventional REM and BCG plays Otway and Bonaparte…
  34. Non Deal Roadshow Presentation – Beach Energy Limited – slide 34
    The unconventional learning curve 1 2 3 4 5 Resource Exploration phase Continued Pilot Development potential appraisal projects 35
  35. Non Deal Roadshow Presentation – Beach Energy Limited – slide 35
    Learning curve reference stages 1. Confirmation of resource potential 3. Continued appraisal Prove gas saturated target zones Determine production variability Establish ability to fracture stimulate Build resource confidence…
  36. Non Deal Roadshow Presentation – Beach Energy Limited – slide 36
    The keys to unconventional success Well profiles the key focus on all projects Uncovering sweet spots with focused activity around them Process improvements and technology to drive efficiencies Costs to be driven down by…
  37. Non Deal Roadshow Presentation – Beach Energy Limited – slide 37
    SACB JV Unconventional gas 38
  38. Non Deal Roadshow Presentation – Beach Energy Limited – slide 38
    SACB JV unconventional program 39
  39. Non Deal Roadshow Presentation – Beach Energy Limited – slide 39
    REM play Targeting the Roseneath Shale, Epsilon Formation, Murteree Shale and Patchawarra Formation Moomba-191 flowing at 2 MMscfd for more than 12 months Roswell-1, Moomba-192 and -194 vertical wells fracture stimulated and flow…
  40. Non Deal Roadshow Presentation – Beach Energy Limited – slide 40
    BCG play Gaschnitz-1 ST1 vertical well: Seven zone stimulation, produced at 1 MMscfd Shut-in, awaiting completion Van der Waals-1 targeting lower Patchawarra, delayed by operational issues Langmuir-1 fracture stimulated 2014…
  41. Non Deal Roadshow Presentation – Beach Energy Limited – slide 41
    Nappamerri Trough Natural Gas 42
  42. Non Deal Roadshow Presentation – Beach Energy Limited – slide 42
    Nappamerri Trough Natural Gas A staged and methodical exploration and appraisal program Delineation of a significant untapped resource Multiple formations present Aerially extensive with permits covering more than 800,000 acres…
  43. Non Deal Roadshow Presentation – Beach Energy Limited – slide 43
    NTNG wells 44
  44. Non Deal Roadshow Presentation – Beach Energy Limited – slide 44
    Exploration concept 45
  45. Non Deal Roadshow Presentation – Beach Energy Limited – slide 45
    Exploration and appraisal cross section Note: Well locations are approximate only and may have been shifted to show their correct structural position on the cross section 46
  46. Non Deal Roadshow Presentation – Beach Energy Limited – slide 46
    Holdfast-2 update Holdfast-2 drilled laterally into the Murteree shale Fracture stimulation completed over nine stages Stimulation monitored by surface micro- seismic tools Testing different fracture stimulation approaches to…
  47. Non Deal Roadshow Presentation – Beach Energy Limited – slide 47
    The Boston program Two fracture stimulation stages completed at Boston-1, with a shallow technical issue Reviewing options including flow testing Boston-3 horizontal well drilled in the lower Murteree Shale Boston-3 fracture…
  48. Non Deal Roadshow Presentation – Beach Energy Limited – slide 48
    Other Australia 49
  49. Non Deal Roadshow Presentation – Beach Energy Limited – slide 49
    Bonaparte Basin EP 126, 138 (Beach earning up to 90%) EP 135, NTC/P10 (Beach earning up to 55%) 6,500 km2 high resolution airborne gravity and magnetic survey acquired, processed and interpreted Ensign 965 rig to be mobilised end…
  50. Non Deal Roadshow Presentation – Beach Energy Limited – slide 50
    Cooper Basin Eastern Flank ATP 732 (Beach earning 50%, Bengal 50%) Located between the Jackson (50 MMbbl of oil produced) and the Kenmore/Bodalla (20 MMbbl of oil produced) fields 300 km2 Nassarius 3D seismic survey completed…
  51. Non Deal Roadshow Presentation – Beach Energy Limited – slide 51
    Otway Basin PELs 494 and 495 (Beach 70% and operator, Cooper Energy 30%) Jolly-1 vertical exploration well at 3,800 metres and coring Exploring the lower Sawpit shale and Casterton Formation in the Penola Trough Targeting…
  52. Non Deal Roadshow Presentation – Beach Energy Limited – slide 52
    International 53
  53. Non Deal Roadshow Presentation – Beach Energy Limited – slide 53
    International operations Romania Provides long-term growth Offshore oil and gas options Favourable fiscal regime Targeted and disciplined approach to key attributes: Egypt Technical Production growing Commercial Exploration…
  54. Non Deal Roadshow Presentation – Beach Energy Limited – slide 54
    Egypt Country status Recent history of political volatility and unrest Business as usual from an operations standpoint Growth potential Targeting material oil prospects Abu Sennan success with El Salmiya wells Beach value add…
  55. Non Deal Roadshow Presentation – Beach Energy Limited – slide 55
    Abu Sennan Concession Beach 22%, Kuwait Energy 50% and operator, Dover Investments 28% El Salmiya-2, tested a new reservoir zone at 3,500 bopd El Salmiya appraisal program in progress: El Salmiya-3 flow tested from the Abu Roash…
  56. Non Deal Roadshow Presentation – Beach Energy Limited – slide 56
    Abu Sennan trap geometry 101 Further appraisal wells to address potential upside 57
  57. Non Deal Roadshow Presentation – Beach Energy Limited – slide 57
    Tanzania Lake Tanganyika South Block Beach 100% Block area 7,200 km2 Natural oil seeps indicate a working petroleum system 2,080 kilometre 2D seismic survey completed in August 2012 Extensive structuring confirmed, similar to…
  58. Non Deal Roadshow Presentation – Beach Energy Limited – slide 58
    Romania Est Cobalcescu block Beach 30%, PetroCeltic 40% and operator, Petromar 30% 1,000 km2 with 3D seismic coverage Water…
  59. Non Deal Roadshow Presentation – Beach Energy Limited – slide 59
    Appendices 60
  60. Non Deal Roadshow Presentation – Beach Energy Limited – slide 60
    Cooper Basin acreage 61
  61. Non Deal Roadshow Presentation – Beach Energy Limited – slide 61
    Chevron transaction summary Subject to joint venture approvals, the key work program elements envisaged across the two permits involve an initial exploration program to be followed by pilot production programs PEL 218 potential…
  62. Non Deal Roadshow Presentation – Beach Energy Limited – slide 62
    SACB JV unconventional and infill Moomba wells - nomenclature Current Well Name Previous Well Name Purpose Status Roswell 1 Roswell 1 Vc 50 coal, REM, Microseismic Flowing from Vc 50 post frac Roswell 2 Roswell 2 Horizontal Roseneath…
  63. Non Deal Roadshow Presentation – Beach Energy Limited – slide 63
    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…

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