Table of contents 1. Company overview 2. Strategic outlook 3. Cooper Basin: Western Flank 4. Eastern Australian gas market 5. Cooper Basin: Delhi (SACB and SWQ JVs) 6. Nappamerri Trough Natural Gas 7. Other interests 3
Company Overview 4
Company overview Cooper and Eromanga Basins A re-aligned focus closer to home Oil Gas Gas Liquids Tight Gas ASX 100 company with a market Operated capitalisation of 1.4 billion1 Non-operated New Managing Director, Rob Cole,…
Multi-play Cooper Basin acreage Australias most prolific onshore hydrocarbon basin, with gross acreage of over 56,000 km2 6
FY15 and beyond Production guidance of 8.9 9.4 MMboe MMboe Actual and Forecast Production Production mix approximately half oil, 10.0 9.6 8.9 9.4 half gas and gas liquids Gas* FY15 capital expenditure guidance reduced 8.0 8.0…
FY15 revised capital expenditure guidance FY15 Revised Capital Expenditure Guidance Original Revised Wells ( million) DEVELOPMENT Cooper Basin (non-SACB and SWQ JVs) 55 60 50 55 13 Cooper Basin (SACB and SWQ JVs) 270 300 260 275 75…
Reserves and contingent resources1 2P: 86 MMboe 2P and 2C: 770 MMboe Gas and gas liquids 67 MMboe Unconventional 2P reserves Gas and gas liquids 86 MMboe 580 MMboe Oil 19 MMbbl Conventional Gas / gas liquids 92 MMboe Oil…
Strategic Outlook 10
Superior Total Shareholder Return Demonstrated outperformance relative to peers 10 Year TSR 5 Year TSR 101% 100% 100% 80% 80% 60% 60% 57% Max: 44% 40% Max: 33% 40% 20% 20% Ave: 9% 0% 0% Ave: -15% -20% -20% Min: -18%…
Key value drivers Absolute focus on delivering superior Total Shareholder Return via key value drivers 1. Drive performance of existing base business 2. Leverage core oil expertise in Cooper Basin 3. Increase gas returns via east…
1. Drive performance of base business Broad review of operating costs and return on assets commenced Encompassing operated and non- operated assets Active dialogue with joint venture partners underway to align efficiency targets…
2. Leverage core oil expertise in Cooper Basin Low cost, high net back operator Quick drill times and high flow rates 4,000 km2 of 3D seismic adding to prospect seriatim Re-processing, interpretation and inversion underway New…
3. Increase gas returns via east coast market Three Queensland LNG plants at various East coast gas demand 2014 2020 (PJ)1 stages of completion QCLNG first cargo in January 2015 GLNG and APLNG first cargo expected in H2 CY151…
4. Realise value from strategic infrastructure Significant interest in strategically located infrastructure, interlinking key markets Working with joint venture partners to drive asset operating efficiencies Moomba (Beach 20.21%)…
5. Maintain financial strength Demonstrated ability to preserve financial flexibility Focus on Balance Sheet strength to continue, with potential for reasonable levels of gearing for suitable growth opportunities million Beach…
6. Value accretive growth close to home Numerous new play types within Focusing on core strategic basins existing Cooper Basin acreage New targets in Western Flank from seismic re-processing Deep coal potential in south of basin…
Cooper Basin: Western Flank 19
Western Flank oil migration path 20
Ex PEL 91 Beach 40% and operator, Drillsearch 60% Retention licences 151 to 172 granted H1 FY15 gross production of 2.1 MMbbl Second Bauer four-well pad campaign complete Bauer facility expansion to 75,000 bfpd complete (+25,000…
Bauer Field pad development Two four-well pad drilling campaigns completed in the Bauer Field Development of flank area surrounding Bauer-12 Three to six metre Namur Sandstone oil columns targeted Wells drilled 10 metres apart at…
Pad well results Results exceeded pre-drill estimates High / Namur McKinlay Well (Low) to Sandstone Member Six of eight wells high to prognosis Prognosis1 Net Pay1 Interval2 Pad 1 Field size continues to increase Bauer-16 (1.1)…
Pad 2 drilling logs Bauer-20 Bauer-21 Bauer-22 Bauer-23 McKinlay Member Namur Sandstone OWC OOWC 2.0 metres low 0.3 metres high 0.9 metres high 3.1 metres high 2.8 metre Namur column 5.5 metre Namur column 5.3 metre…
Infrastructure upgrades New pipelines from Stunsail and Pennington facilities feeding into new hub Hub to be gateway for transportation of oil through single pipeline to Bauer facility CKS brought online in October 2014 Balgowan…
Ex PEL 92 Beach 75% and operator, Cooper Energy Retention licences 85 to 104 granted 25% H1 FY15 gross production of 0.8 MMbbl Reprocessing and inversion of existing 3D seismic underway Callawonga and Butlers / Parsons trends…
Ex PEL 104 / 111 Beach 40%, Senex 60% and operator Retention licences 136 to 150 granted H1 FY15 gross production of 0.9 MMbbl Spitfire Field producing above expectations Historical focus on Birkhead Formation Recent Martlet-1 and…
Ex PEL 106 Beach 50% and operator, Drillsearch 50% Retention licences 129 and 130 granted H1 FY15 gross production of 0.4 MMboe Gas sales agreement with SACB JV to March 2016 Canunda-2 appraisal well cased and suspended Expected…
Eastern Flank ATP 924 Farming-in 45% with Drillsearch Enviable address between existing fields Permit area 2,300 km2 and located between the Inland and Cook oil fields Targeting Jurassic oil and Permian gas reservoirs on large…
Eastern Flank ATP 732 Farming-in 50% with Bengal Energy Proximal to long-producing oil fields Enviable address proximal to long- producing oil fields Nassarius 3D covering 306 km2 acquired in 2014 in north of permit Seismic…
Deep Coals PEL 94 / 95 PEL 94: Beach 50% and operator, Strike New play type in south of Cooper Basin Energy 35%, Senex Energy 15% PEL 95: Beach 50% and operator, Strike Energy 50% Targeting deep coals at 1,500 metres 2,000 metres…
Eastern Australian Gas Market 32
East coast gas market dynamics Falling quantity of contracted gas in key East coast domestic gas contracts, by basin, 2012 to 2031 Eastern Australian market Contractual arrangements covering around 260 PJ of gas due to expire in…
Prolific gas acreage strategically located Cooper and Eromanga basins the engine room for Beach Generating all Australian production Conventional oil, gas and deep gas activity Otway Basin Offshore 3D seismic underway Proximal…
Key Beach gas transactions Origin gas sales agreement High value - Signed April 2013 opportunities - 139 PJ over eight years; potential to extend to 173 PJ over ten years - Supply to start by 1 July 2015 Exposure to oil linked…
Cooper Basin: Delhi (SACB and SWQ JVs) 36
SACB and SWQ JVs Significant acreage with strategic infrastructure Gross joint venture area of 26,800 km2 (6.6 million acres) 6,000 kilometres of flowlines Primary processing and transportation facilities Upside from shale, coal…
SACB JV gas 2013/14 Development in 2013 and 2014 primarily focused on close spaced infill drilling Cowralli, Moomba North and Big Lake fields key focus; mixed program results 38
SACB JV gas 2015 2015 program more geographically widespread Mudera and Marabooka to focus on shallower Coorikiana sands, with lower drilling costs Potential drilling programs in Moomba North and Tirrawarra 39
SWQ JVs 2015 2015 program to focus on northern fields, with appraisal and exploration drilling Significant development and appraisal / exploration at Whanto Pipeline infrastructure upgrades underway to deliver gas to market 40
Nappamerri Trough Natural Gas 41
Nappamerri Trough Natural Gas An aerially extensive resource, with permits covering more than 800,000 acres Ex PEL 218 (PRLs 33 to 49) Beach 100%; ATP 855 Beach 64.9% and operator, Icon Energy 35.1% 42
Permian cross-section In excess of 1,000 metres of gas saturated section across entire permit areas 43
Stage 1 exploration phase Stage 1 exploration phase complete all technical objectives met Key Objectives Key Highlights Geographically and vertically delineate 1. 18 wells drilled across permits target zones Test fracture…
Stage 2 foundation Stage 1 learnings and investment provide significant optionality for future activities Significant third party investment to date Significant Stage 2 Permits in good standing with minimal spend required learnings…
Next steps A measured approach to capital spend and timing of future activities Complete technical review of Stage 1 results with joint venture partner Confirm play concepts for further appraisal, such as Daralingie sands, areas…
Potential new play: Daralingie Formation Unique Stratigraphy Intersected stratigraphic sections in the Nappamerri Trough not seen elsewhere in the Cooper Basin Daralingie sand packages productive when tested to date Thick sand…
Identified high grade targets Ex PEL 218 Observed enhanced porosity Structural highs ATP 855 Daralingie (Etty-1) and Patchawarra (Geoffrey-1) flows Gas kick in Keppel-1 High reservoir pressure Elevated permeability…
Other Interests 49
Other Australian interests Otway Basin Gippsland Basin Various Beach interests, from 30.0% to 75.0% Beach 65%, Cooper Energy 35% and operator 50
Other Australian interests Bonaparte Basin Browse and Carnarvon Basins Browse Basin: Beach 7.34%, Santos 47.83% and operator, Chevron 24.83%, Inpex 20.0% Beach farming-in 85% with TOAG (currently Beach 55% and operator, TOAG 45%)…
Egypt Sale process underway Egypt Permit Interests Abu Sennan Concession Beach 22%, KEE 50% and operator, Dover 28% 52
Tanzania Farming-down to Woodside Lake Tanganyika South Block Seismic Surveys Beach farming-down 70% to Woodside 53
New Zealand South Island Canterbury Basin North Island Taranaki Basin PEP 57080: Beach 50%, Tod Exploration 50% and operator Beach 50%, NZOG Devon 50% and operator PEP 52181: Beach 25%, NZOG Energy 35% and operator, TAG 40% 54
Production by area Area H1 FY15 H1 FY14 Change Cooper / Eromanga basins 2,370.2 2,603.9 (9.0%) Oil (kbbl) Egypt 49.5 32.7 51.4% Total oil 2,419.7 2,636.6 (8.2%) Sales gas and ethane (PJ) Cooper Basin 11.5 11.0 4.4% LPG (kt)…
Contact information Beach Energy Limited 25 Conyngham Street Glenside SA 5065 Tel: +61 8 8338 2833 Fax: +61 8 8338 2336 Website: www.beachenergy.com.au External Affairs Chris Jamieson Group Executive External Affairs Email:…
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