BEACH ENERGY LIMITED This presentation contains forward looking statements that are subject to risk factors associated with oil, gas and related businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including, but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delays or advancements, approvals and cost estimates.
All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. References to 'Beach' may be references to Beach Energy Limited or its applicable subsidiaries.
Unless otherwise noted, all references to reserves and resources figures are as at 30 June 2015 and represent Beach's share.
Competent Persons Statement
The reserves and resources information in this presentation is based on, and fairly represents, information and supporting documentation prepared by, or under the supervision of, Mr Tony Lake (Reservoir Engineering Manager). Mr Lake is an employee of Beach Energy Limited and has a BE (Mech) degree from the University of Adelaide and is a member of the Society of Petroleum Engineers (SPE). The reserves and resources information in this presentation has been issued with the prior written consent of Mr Lake in the form and context in which it appears.
2
- Company Overview 4
- Strategic Outlook 12
- Cooper Basin: Western and Eastern Flanks 18
- Cooper Basin: Other Operated Interests 30
- Cooper Basin: Delhi (SACB and SWQ JVs) 35
3
Cooper and Eromanga Basins | ||||
Oil | Gas | Gas Liquids | Tight Gas | |
Operated | | | | |
Non-operated | | | | |
A re-aligned focus closer to home
Diversified hydrocarbon explorer and producer; core expertise in the Cooper and Eromanga basins
- Australia's largest onshore oil producer
Owner of strategic infrastructure linking key energy markets
Executing strategy to become Australia's premier upstream oil and gas company
Market capitalisation ~$700 million1
Fully funded FY16 exploration program anticipated
1. As at 19 September 2015
5
Australia's most prolific onshore hydrocarbon basin, with gross acreage of c.50,000 km2
6
To be Australia's premier multi-basin upstream oil and gas company
Purpose
To deliver sustainable growth in shareholder value
Values
Safety: Takes precedence in everything we do
Creativity: Continuously explore innovative ways to create value
Respect: For each other, our communities and the environment
Integrity: Be honest with ourselves and others
Performance: Strive for excellence and deliver on promises
Teamwork: Help and challenge each other to achieve our goals
Hours (million) 1.5
1.0
0.5
0.0
Hours Worked and Lost Time Injuries
1.3
1.1 1.0
0.9
FY13 FY14 FY15 LTM
Hours worked LTIs
LTIs
8
6
4
2
0
Beach's safety-first culture evidenced by 12 months of LTI-free operations 7
1,000
800
600
400
200
0
Sales Revenue
$ million 270
240
210
180
150
120
90
60
30
0
Underlying NPAT
$ million 600
500
400
300
200
100
0
Operating Cash Flow
FY11 FY12 FY13 FY14 FY15
FY15 financial results
FY11 FY12 FY13 FY14 FY15
FY11 FY12 FY13 FY14 FY15
Sales revenue of $728 million
Underlying NPAT of $91 million
Operating cash flow of $229 million
Cash balance of $170 million; net cash of $20 million
Undrawn $150 million secured debt facility
Full year dividends of 1.5 cents per share
8
Financial year ended 30 June 2015
Production of 9.15 MMboe
51% oil; 49% gas and gas liquids
MMboe 10.0
Actual and Forecast Production
9.6
9.1
7.8 - 8.6
Operated oil production driven by:
Bauer facility upgrade;
Six of 10 Bauer Field development wells online; and
Flowlines at maximum capacity
121 wells completed
88% overall success rate
52% exploration success rate
82% appraisal success rate
Financial year ending 30 June 2016
8.0
6.0
4.0
2.0
0.0
7.5
Gas* 4.7
(27 PJe)
Oil 2.8
8.0
Gas* 4.3
(25 PJe)
Oil 3.7
Gas* 4.4
(25 PJe)
Oil 5.2
Gas* 4.5
(26 PJe)
Oil 4.6
Gas* 3.9-4.3
(23-25 PJe)
Oil 3.9-4.3
Production guidance of 7.8 - 8.6 MMboe
FY12A FY13A FY14A FY15A FY16E
Gas and gas liquids; totals may not sum due to rounding
9
2P: 74 MMboe 2P and 2C: 751 MMboeGas and gas liquids 55 MMboe
Oil
19 MMbbl
Oil
13 MMbbl
2P reserves 74 MMboe
Conventional gas/gas liquids 75 MMboe
Unconventional gas and gas liquids 589 MMboe
As per announcement to the Australian Securities Exchange on 24 August 2015; no new information has subsequently come to hand which would materially alter estimates or underlying assumptions
c. 100% 2P oil reserves replacement ratio in FY15 10
Expected Wells | Other Major Activities | ||
DEVELOPMENT | 45 - 50 | 7 - 8 | Bauer facility upgrade; Middleton gas compression |
Cooper Basin | |||
Cooper Basin (SACB and SWQ JVs) | 145 - 160 | 28 - 30 | Connection of Windorah-Marama area development |
Total Development | 190 - 210 | Up to 38 | |
EXPLORATION | 30 - 35 | 10 - 12 | PEL 87 / 424 seismic |
Cooper Basin | |||
Cooper Basin (SACB and SWQ JVs) | 5 - 10 | 5 - 10 | SACB JV coal fracs |
Other Australia | 5 | 21 | Manta business case review |
Unconventional | 5 | - | Bonaparte well test1; NTNG review |
International | 5 | - | New Zealand work programs |
Total Exploration | 50 - 60 | Up to 24 | |
TOTAL | 240 - 270 | Up to 62 |
1. Otway conventional wells and Bonaparte well test both subject to farm-down
11
|
distributed by
|
