Beach Energy Ltd

FY26 results: production 19.4 MMboe, sales revenue $1.8bn, underlying NPAT $355m, free cash flow $146m, net gearing 10.6%. Final dividend 2.0c, full-year 3.0c, against 6.0c final last year. A revised capital management framework prioritises balance sheet strength; nearshore Otway FID targeted H1 FY27.

annual report

Beach agreed to sell its 60% of VIC/L35 (Artisan gas discovery) to Amplitude (50%) and O.G. Otway (10%) for $70m upfront plus a $3.75/GJ royalty, about $140m in total. La Bella 2 will not be drilled, freeing over $500m of capital.

asset acquisition disposition

March quarter production rose 7% to 4.8 MMboe as Waitsia reached 94% of nameplate; revenue $419m, liquidity $974m. FY26 production guidance cut to 19.4-20.3 MMboe (from 19.7-22.0) on Waitsia ramp-up and Cooper rain. New Queensland acreage awarded.

quarterly activities report

Beach and operator Santos took final investment decision on Moomba Central Optimisation in the Cooper Basin. Net capex is about $250m over three years, targeting over $400m of net savings; completion targeted H1 FY29.

material agreement

Omega-led joint venture awarded 750 sq km Taroom Trough block PLR2025-1-9 by Queensland; Beach takes 25% (Omega 45% operator, Tri-Star 30%). This is Beach's entry into the Taroom Trough, with drilling possible from H2 2026.

asset acquisition disposition

First sales gas exported from the Waitsia Gas Plant into the pipeline on 8 December 2025, completing the long-delayed Stage 2 project. Emergency power restart tests come before ramp-up begins. This is later than the earlier 'within two weeks' expectation of 7 November.

production update

Waitsia Gas Plant reached Ready For Start Up, with first sales gas expected within two weeks. After repeated slippage, this is the final step before ramp-up; the plant's nameplate is 250 TJ/day.

production update

FY25 results: underlying NPAT up 32% to $451m, sales revenue $2.0bn, record final dividend 6.0c (9.0c total). A $474m after-tax impairment drove a statutory loss. FY26 guidance: production 19.7-22.0 MMboe, capex $675-775m; Waitsia completion expected Q1 FY26.

annual report

June quarter production 4.6 MMboe; FY25 production up 9% to 19.7 MMboe, revenue $2.0bn, net debt $368m. Waitsia first gas slips again to Q1 FY26. Beharra Springs Deep 3 shows depletion (-10.7 MMboe 2P); $674m impairment expected.

quarterly activities report

H1 FY25 underlying NPAT rose 37% to $237m, production rose 15% to 10.2 MMboe, and net gearing fell to 10%. Interim dividend raised 50% to 3.0c. FY25 production guidance narrowed to 18.5-20.5 MMboe; Waitsia first sales gas targeted Q4 FY25.

half year report

First gas from the Thylacine West 1 and 2 wells, connected to the Otway Gas Plant. Beach calls it the largest offshore drilling and development program in the Otway Basin, completing the campaign and materially increasing plant well deliverability.

production update

Moomba CCS, in which Beach holds 33.4% and Santos operates, took its first CO2 injection on 30 September 2024 and is at capacity rates. It can store about 1.7 Mt of CO2 a year, roughly a third of Beach's equity emissions. This completes the build.

production update

Replying to an ASX query, Beach says Enterprise pressure data alone was not material, but the 11.5 MMboe Enterprise revision and a 31.5 MMboe net 2P revision were. Total 2P fell about 50 MMboe to 205 MMboe, including 18.2 MMboe of production. This explains the Enterprise reserves cut.

listing compliance notice

FY24 revenue rose 9% to $1.8bn but underlying NPAT fell 11% to $341m. Production fell 7% to 18.2 MMboe. Enterprise pressure data points to a smaller reservoir, so 2P reserves were cut by 11.5 MMboe. Net gearing is 15% and the final dividend is 2.0c.

annual report

Presentation of the strategic review outcomes promised for 18 June, following the 30% headcount cut announced in March. The extract shows only disclaimers and assumptions (Brent US$82.75/bbl for FY25), so the specific outcomes are not visible here.

investor presentation

First sales gas from the Enterprise field reached the Otway Gas Plant on 12 June 2024. The field, discovered in FY21, carries 2P reserves of 34 MMboe gross (20 MMboe net) and supplies gas under the Origin GSA to end-CY2026. This completes the Enterprise development thread.

production update

Beach expects a $365-400m pre-tax non-cash impairment in FY24: Taranaki (Kupe South 9 recovery lower) $115-125m, Bass Basin $250-275m. Bass Basin discoveries (Trefoil, Bass, White Ibis, Yolla West) will not be developed for now, and development planning has ceased.

asset acquisition disposition

March quarter production rose 4% to 4.5 MMboe; revenue fell 28% to $392m. Redback Deep 1 found 28 m of net pay. FY24 production guidance cut to 18.0-18.5 MMboe. Waitsia guidance of early CY2025 maintained; Enterprise approval received.

quarterly activities report

Waitsia Stage 2 slips again: first gas now early CY2025 (was mid-CY2024) and net capex rises to $600-650m (was $450-500m), after further quality issues in pre-commissioning. This follows earlier delays and cost increases.

joint venture update

The first stage of the strategic review is complete, with a new asset-based structure from 8 April 2024. Beach will cut headcount by 30% and several executives will leave. This is a strategy shift under the new CEO, aimed at lower costs.

other

H1 FY24 sales revenue rose 16% to $941m, but production fell 11% to 8.8 MMboe and underlying NPAT fell 10% to $173m. A $721m impairment drove a statutory loss. Net gearing is 12%, debt facility $920m, FY24 production guidance 18-20 MMboe.

half year report

December quarter production fell 4% to 4.3 MMboe, but revenue rose 37% to $544m on the first Waitsia LNG cargo. A ~$721m non-cash impairment (Cooper Basin) is flagged, Origin Otway price review settled, FY24 production guidance trimmed to 18-20 MMboe.

quarterly activities report

Tarantula Deep 1 in the Perth Basin is a gas discovery, with 10 m net gas pay above a gas-water contact in 63 m of Kingia Sandstone, at 4,121 m. Results are in line with pre-drill estimates; the well will be suspended for future development.

drilling result

Chairman Glenn Davis, a director since 2007 and chair since 2012, will retire at the 14 November 2023 AGM. Ryan Stokes of Seven Group (about 30% holder) becomes interim chair, with Peter Moore as lead independent director; a preferred permanent chair candidate is in advanced talks.

director officer appointment

Trigg Northwest 1 in the Perth Basin found gas in the Kingia Sandstone: 6 m net pay over a 49 m gross section, at 5,000 m depth. It follows the dry Trigg 1; commerciality is yet to be tested, with two discoveries from the first four wells.

drilling result

FY23 production fell 11% to 19.5 MMboe; revenue $1,617m, underlying NPAT $385m (down 24%). Waitsia Stage 2 first gas now mid-CY2024 with $450-500m net capex, replacing the earlier end-2023 target and $400-450m. FY24 guidance: 18-21 MMboe, capex $850m-1bn.

annual report

Beach appoints ex-Santos executive Brett Woods as Managing Director and CEO from 21 February 2024. Morné Engelbrecht leaves as CEO immediately; director Bruce Clement becomes interim CEO on $1.25m a year.

director officer appointment

Trigg 1, the first Beach-operated Perth Basin exploration well (Beach 50%), reached 4,914 m but the Kingia reservoir was too tight to flow gas. It will be plugged and abandoned and the Trigg 2 side-track will not be drilled. A dry hole.

drilling result

Beach says a tight Western Australian labour market has slowed Waitsia Stage 2 construction, so it no longer considers the earlier end-2023 first gas target and $400-450m net capex estimate prudent. A cost and schedule review is ongoing. Contradicts the February 2023 targets.

joint venture update

Beach connected the Thylacine North 1 and 2 wells to the Otway Gas Plant, adding gas to the East Coast market; four of six Otway development wells are now connected. The last two need a flowline repaired or replaced, with a review under way.

production update

First-half sales revenue rose 3% to $813m, but underlying NPAT fell 10% to $191m. New dividend policy targets 40-50% of pre-growth free cash flow; 2c interim declared. FY23 production guidance cut to 19.0-20.5 MMboe from 20.0-22.5; capex $900m-1bn.

half year report

Beach and Mitsui agreed for Webuild to complete Waitsia Stage 2 after Clough's collapse, targeting first gas by end of 2023. Beach's net capex estimate rises to $400-450m from $350-400m, resolving the contractor uncertainty at a higher cost.

material agreement

December quarter production fell 8% to 4.8 MMboe; revenue rose 1% to $408m. Perth Basin net 2P reserves cut 11% (10.6 MMboe) after the Waitsia drilling campaign, with no impairment. Waitsia Stage 2 contractor agreements described as imminent after Clough's administration.

quarterly activities report

Beach decided not to match Hancock's revised $0.28 per share bid for Warrego, ending its pursuit. It will instead put more exploration capital into its existing Perth Basin acreage, which holds 574 PJ of 2P reserves net to Beach.

business combination

Clough, the engineering and construction contractor for the 250 TJ/day Waitsia Stage 2 gas plant, entered voluntary administration. Beach and operator Mitsui say they will work with the administrator to keep the project progressing. Possible risk to the H2 2023 LNG start; impact not stated.

contract award

Hancock lifted its takeover offer for Warrego from $0.23 to $0.28 per share, which Warrego's board judged superior to Beach's $0.25 counterproposal. Beach gets a new 5-business-day matching window to 12 December. Bidding is escalating.

business combination

Beach used its matching right, countering Hancock's $0.23 with $0.25 cash per share plus any net Spanish asset sale proceeds. Other terms are unchanged, and Beach's board says it beats the Hancock bid.

business combination

Warrego's board judged a $0.23 per share off-market takeover from Hancock Energy a superior proposal to Beach's $0.20 scheme, and started Beach's 5-business-day matching right period, ending 8 December. Beach's deal is now contested.

business combination

Beach signed a binding Scheme Implementation Deed to buy Warrego at $0.20 cash per share plus any net Spanish asset sale proceeds, with Warrego board support. Funded from existing debt and cash, with no financing condition. Completion targeted 8 March 2023. Converts the 11 November proposal into a binding deal.

business combination

Warrego Energy disclosed a non-binding offer from Beach to buy all its shares by scheme at $0.20 cash each, plus any net proceeds if its Spanish assets sell within 12 months. Warrego granted due diligence. Warrego holds 50% of the Perth Basin West Erregulla gas project.

asset acquisition disposition

Beach confirmed its proposal to buy Warrego at $0.20 cash per share (values Warrego at $246m fully diluted), plus any Spanish asset sale proceeds. It would be funded from existing debt facilities and cash, and complements Beach's Perth Basin growth strategy.

asset acquisition disposition

Beach signed the LNG sale agreement with bp for all 3.75 million tonnes of its Waitsia Stage 2 LNG, supply from H2 2023 for about five years. Pricing links to Brent and JKM with downside protection. Resolves the September 2021 heads of agreement.

material agreement

Beach completed its seven-well offshore Otway campaign, with Thylacine North 2 finishing in July 2022: one gas discovery at Artisan and six successful development wells, all at or above expectations. Thylacine wells are due online by mid-2023, lifting the Otway Gas Plant towards 205 TJ/d.

drilling result

Beach deferred the Trefoil development decision in the Bass Basin and will reclassify its reserves to contingent resources at 30 June 2022. It instead prioritises a newly identified Yolla West target, drilling targeted summer 2022/23, with about 50% chance of success.

resource reserve update

Morné Engelbrecht was appointed permanent CEO on a fixed salary of $1.266m, after an international search. He had been acting CEO since Matt Kay resigned in November 2021. Resolves the open CEO search.

director officer appointment

December quarter production was 5.3 MMboe, down 7%, with revenue of $398m (+3%) and net cash of $73m. First gas flowed from the offshore Otway campaign via Geographe 4 and 5, and Thylacine North 1 was drilled in line with expectations.

quarterly activities report

Beach was served with a Victorian Supreme Court class action by Slater & Gordon for shareholders who bought between 17 August 2020 and 29 April 2021. Beach denies liability and will defend. No claim amount is given.

other

Managing Director and CEO Matt Kay resigned after nearly six years to pursue other opportunities. CFO Morné Engelbrecht becomes acting CEO immediately while a search for a replacement runs. Leadership change comes as the 28 MMboe FY24 growth program is under way.

director officer appointment

Santos and Beach took final investment decision on the US$165m (A$220m) Moomba carbon capture project, startup expected 2024, storing 1.7 million tonnes of CO2 a year. Santos holds 66.7% and Beach the rest. Resolves the FEED and registration thread.

joint venture update

Investor update sets a base-case production target of 28 MMboe in FY24 (13% annual growth), excluding exploration success and pre-FID projects. Geographe 4 and 5 met expectations; revolving debt facility upsized to $600m, liquidity about $650m; net gearing expected to peak below 10% in FY22.

investor presentation

Beach signed a heads of agreement with bp for bp to buy all 3.75 million tonnes of Beach's expected Waitsia Stage 2 LNG, with supply forecast from H2 2023. The price is linked to Brent and JKM with downside protection, and a full contract is targeted in H2 FY22.

material agreement

FY21 profit was $317m after a $117m impairment (underlying $363m); production 25.6 MMboe, down 4% on lower Western Flank oil. Net debt $48m, final dividend 1.0c held. Net zero 2050 aspiration announced; LNG sales contract targeted in FY22.

annual report

Beach cut Western Flank 2P reserves by 18.4 MMboe net (17.6 MMbbl oil, 7.2 MMboe gas), partly offset by Senex assets. FY21 production guidance fell to 25.2-25.7 MMboe from 26.5-27.5, and the five-year outlook was withdrawn.

resource reserve update

Beach welcomed the arbitrator's partial award repricing Otway gas sold to Origin, effective 1 July 2020, at roughly the midpoint of 2020 southern-states wholesale prices ($7.86-10.82). The price figure for Beach is not stated here. It resolves the price review.

regulatory community update

Artisan 1 offshore Victorian Otway (Beach 60% op) found gas: 62.9 m net pay in the Upper Waarre, plus 4.6 m in the Flaxman. Cased as a future producer; CEO said it is at the lower end of pre-drill expectations. Follows November's Enterprise find.

drilling result

Senex (not Beach) said it completed the $87.5m sale of its Cooper Basin business to Beach on 1 March 2021. This resolves the pending acquisition announced in November 2020 and lifts Beach's Cooper Basin holdings.

asset acquisition disposition

Half-year NPAT was $128.7m (down 53% on underlying) on production of 13.0 MMboe, with the Waitsia FID now unconditional. Western Flank oil wells showed higher than expected decline rates. FY21 guidance was updated for the acquisitions; cash $114m.

half year report

Beach booked net 2P reserves of 21 MMboe (34 MMboe gross) for the Enterprise gas field, discovered in November 2020, with liquids yield above pre-drill expectations. FEED starts in H2 FY21, final investment decision targeted in FY22, first gas H1 FY23.

resource reserve update

Beach confirmed Ironbark-1 is a dry hole: drilled to 5,618 m, the Mungaroo target at 5,275 m showed no significant hydrocarbon. It will be plugged and abandoned. This ends the Ironbark exploration well in which Beach held 21%; no cost figure given.

drilling result

Waitsia Stage 2 (Beach 50%, Mitsui-related AWE 50% operator) reached final investment decision, subject to regulatory approvals and commercial conditions. Beach's share of capex is A$350-400m, funded from existing cash flows and facilities. First LNG sales are expected in H2 CY23, Beach's first LNG exposure.

material agreement

Beach made a gas discovery at Enterprise 1 in the Victorian Otway Basin (Beach 60%, O.G. Energy 40%): 115 m net gas pay at 4,974 m total depth, about 10% CO2. First Otway exploration success after Black Watch-1; to be cased as future producer, volume estimate by February 2021.

drilling result

Beach will buy Senex's Cooper Basin assets for $87.5m cash, adding 6.8 MMboe of 2P reserves and ~0.6 MMboe FY21 production, and becoming sole Western Flank operator. Beach cites about $5m a year of savings; settlement expected by March 2021 quarter.

asset acquisition disposition

Cue Energy (not Beach) reported Ironbark-1 began drilling on 31 October 2020, expected to take 70-90 days. Targets a 15 Tcf prospective gas resource (unrisked, undiscovered). Beach holds 21% of WA-359-P.

drilling spud

Beach signed a new Ocean Onyx rig contract with Diamond for up to 9 Victorian Otway wells (6 firm, 3 options), drilling from December 2020 to March 2021, starting with Artisan-1. A settlement will dismiss the legal dispute over the April termination, subject to Bankruptcy Court approval and conditions precedent.

material agreement

FY20 results: underlying NPAT $461m, statutory $501m, net cash $50m, 2P reserves 352 MMboe (214% replacement), final dividend 1c. Growth plan continues at slower pace with over $300m of FY21 capex deferred; targets 37-43 MMboe in FY25. Waitsia Stage 2 FID expected December 2020 quarter.

annual report

Diamond Offshore filed for US Chapter 11 and sued, claiming Beach's Ocean Onyx contract termination is invalid, or alternatively seeking damages to be determined. Beach denies the claim and will defend it, while continuing without-prejudice talks about the rig.

material agreement termination

Beach terminated the Ocean Onyx rig contract with Diamond Offshore because the rig arrived later than agreed. Offshore Victorian Otway drilling is now unlikely before FY21. Black Watch-1 was completed in line with expectations; Enterprise is planned for second half 2020.

material agreement termination

Responding to lower oil prices and COVID-19, Beach targets up to 30% deferral of FY21 capital investment and cut FY20 underlying EBITDA guidance to $1.175-1.250bn. Net cash was $151m at end-February, with over $600m liquidity including a $450m credit facility.

investor presentation

Tawhaki-1 in offshore New Zealand (Beach 30%, OMV operator) reached 2,980 m with no hydrocarbons in the target reservoir and is being plugged and abandoned. This is a dry hole for the frontier well Beach farmed into in December at about $25m net cost.

drilling result

Half-year results: underlying NPAT $274m, net cash $60m, 1.0c interim dividend. FY20 capex guidance raised to $875-950m (from $750-850m) for added Tawhaki and SA Otway activity, and production guidance narrowed to 27-28 MMboe.

half year report

Beach agreed with OMV to acquire 30% of offshore New Zealand permit PEP50119, which holds the undrilled Tawhaki prospect (closure up to 470 km2). It funds 30% of Tawhaki-1, about $25m, drilling early 2020; subject to NZ approval.

farm in farm out agreement

Beharra Springs Deep-1 flow test reached up to 46 MMscfd, tubing constrained, with stable rates over 96 hours, confirming the October Kingia gas discovery. Tie-in is expected by end-2020. The 17% sell-down to Mitsui completed 29 November, giving 50:50; Trieste 3D seismic has started.

flow test result

Beach announced a gas discovery at Beharra Springs Deep-1 in the Perth Basin (Beach 50% and operator, Mitsui 50%, pending the 17% sell-down). It found an estimated 36 m net pay in the Kingia Sandstone, comparable to Waitsia-4. Recoverable volumes are still to be assessed.

drilling result

Cooper Energy (not Beach) reported a gas discovery at Dombey-1DW1 in PEL 494 (Beach 70% operator). It found a 44.5 m gross gas column with about 25 m net pay in the Pretty Hill Formation. Commerciality is not yet established; testing is required.

drilling result

FY19 results: production 29.4 MMboe, underlying NPAT $560m, net cash two years early. 2P reserves rose to 326 MMboe (204% replacement). FY20 guidance is 27-29 MMboe; the five-year target was lifted to 34-40 MMboe (from 30-36) and FCF to $2.7bn.

half year report

Beach agreed to sell a 17% interest in Beharra Springs, EP 320 and PL 18 to Mitsui's MEPAU, moving to 50:50 and keeping operatorship. It also signed a 20 TJ/day Waitsia gas deal with Alinta from July 2020 for 4.5 years, with Stage 1 expansion approved.

joint venture update

Cue (not Beach) announced completion of the Ironbark agreements. Beach now holds 21% of WA-359-P alongside BP (42.5%, operator), Cue (21.5%) and NZOG (15%). The Ironbark-1 well is scheduled for late 2020. This completes the thread open since October 2018.

farm in farm out completion

The sale of 40% of Beach's Victorian Otway assets to O.G. Energy completed, with a $262m payment received ($344m price less $82m adjustments). Beach keeps 60% and operatorship, moves to net cash, and will transfer 40% of La Bella to O.G. Energy.

asset acquisition disposition

Red Sky (not Beach) received South Australian ministerial consent and completed the transfer of the Innamincka Dome licences from Beach's subsidiary. This closes the exit from these shut-in Cooper Basin assets, pending since January 2019. No sale price is stated.

asset acquisition disposition

Sally-Anne Layman joined the board as an independent non-executive director from 25 February 2019, meeting the long-sought female director goal. CEO Matt Kay was also made a director and Managing Director from the same date.

director officer appointment

Santos announced it will align interests with Beach as 50/50 partners across four Bonaparte Basin permits (NT/P82, NT/P85, NT/P84, WA-454-P), with Santos operating. This resolves the open Bonaparte farm-down thread. Next step is seismic evaluation, with drilling possible within a few years.

joint venture update

H1 FY19 underlying NPAT rose 199% to $279m on sales revenue of $955m, with a 1.0 cent interim dividend. FY19 EBITDA guidance was lifted by $200m to $1.25-1.35bn. Net cash is expected by end Q3 FY19; La Bella gas field was secured.

half year report

FY19 production guidance raised to 28-29 MMboe (from 25-27) on strong H1 output of 15.2 MMboe and higher Bauer oil. Capex narrowed to $450-500m. Otway sale completion now expected 31 March 2019, not 31 December 2018, adding 0.7-0.9 MMboe.

production update

September quarter production rose 7% to 7.76 MMboe, revenue hit $514m and free cash flow $152m. Net debt fell to $486m (gearing 20%), with $250m repaid early. FY19 production and EBITDA now expected near the top of guidance; a further Western Flank rig is approved.

quarterly activities report

Cue, BP, Beach and NZ Oil & Gas signed a conditional agreement to form a joint venture and drill Ironbark-1 in WA-359-P. Beach would hold 21%, BP 42.5% as operator. Title transfer is targeted for Q2 2019. Advances Beach's pending farm-in.

farm in farm out agreement

Beach agreed to sell 40% of its Victorian Otway assets to O.G. Energy for $344m cash, resolving the farm-down process. Beach keeps 60% and operatorship. Effective 1 July 2018, completion needs FIRB approval, expected by end Q3 FY19. Proceeds go to debt reduction and capex.

asset acquisition disposition

After the 40% Otway sale, FY19 production guidance falls to 25-27 MMboe (from 26-28) and capex to $440-520m. The FY23 production target drops to 30-36 MMboe (from 34-40). Five-year free cash flow stays above $2.3bn, above $2.6bn with sale proceeds.

other

Investor briefing targets FY23 production of 34-40 MMboe, up from 19.0 MMboe in FY18, and over $2.3bn free cash flow over five years. Beach expects to be close to debt free by end FY20. This is a strategy and growth outlook.

investor presentation

FY18 results: sales revenue $1.25bn, underlying profit $302m, net gearing 25.9%. FY19 guidance is production of 26.0-28.0 MMboe and capex of $460-540m, the biggest investment year yet. The synergy target was raised from $50m to $60m a year.

investor presentation

Beach's 2P reserves rose 320% to 313 MMboe at 30 June 2018 (1P up 405% to 190 MMboe), mainly from the Lattice and Toyota Tsusho acquisitions. 2C contingent resources rose 35% to 207 MMboe. Organic 2P replacement was 368%.

resource reserve update

Beach completed the Toyota Tsusho purchase announced 21 December 2017: its Otway Gas Project interest rises from 95% to 100% and its BassGas producing assets from 42.5% to 53.75%. Beach operates both. Price not stated in this announcement.

asset acquisition disposition

March quarter was the first with Lattice: record production of 6.6 MMboe, sales revenue $393m and about $133m free cash flow. Net gearing fell to 29%. FY18 pro forma production guidance narrowed to 26.0-27.0 MMboe and capex cut to $370-400m. Otway farm-down is underway.

quarterly activities report

Beach and Senex agreed to move the up to $43m free-carry Beach inherited from Lattice from unconventional gas to western flank oil permits (Senex 60% op, Beach 40%). Lattice's earned gas interest reverts to Senex. Work from early FY19: at least three horizontal development and seven exploration wells.

joint venture update

Beach names its executive team for the enlarged business after Lattice: Dawn Summers (ex-Origin Lattice operations head) becomes COO from 1 February 2018, replacing Mike Dodd in that role (inference). Geoff Barker, Brett Doherty and Lee Marshall join; Kay, Schrull, Engelbrecht and Oster remain.

director officer appointment

The Lattice acquisition has closed: Beach paid $1,498m ($1,585m less $87m adjustments), funded by $503m cash and $995m new debt. Beach now has about $135m cash, $995m drawn debt and net gearing under 33%. Ends the pending deal and makes Beach a multi-basin producer.

asset acquisition disposition

Beach raises its standalone FY18 production guidance to 10.6-11.0 MMboe (from 10.0-10.6) and lifts its capex to $255-285m. Pro forma with Lattice, production is 25.5-27.6 MMboe and capex is cut to $405-455m through Lattice project deferrals.

production update

Haselgrove-3 ST1 (PPL 62, Beach 100%) is a new onshore Otway gas field discovery. Sawpit Sandstone flowed 25 MMscfd, limited by tubing size, with 34 m of net pay across two targets. This resolves the earlier stuck-tool sidetrack; an initial production test follows in late January.

flow test result

Beach agrees to buy Toyota Tsusho's 5% of the Otway Gas Project and 11.25% of BassGas for undisclosed cash, from existing reserves. With Lattice and Benaris interests, Beach would hold 100% of Otway and 53.75% of BassGas producing assets. Completion is expected early 2018.

asset acquisition disposition

All conditions are met for the $1,585m Lattice Energy purchase from Origin; completion will occur on 31 January 2018, with economic exposure back-dated to 1 July 2017. This resolves the main pending approvals and sets a timetable of updates.

asset acquisition disposition

Beach signs binding deals to farm into the giant Ironbark gas-condensate prospect off WA: 21% of WA-359-P for $900,000 plus 4% of drilling cost, and an option over 7.5% of WA-409-P. Conditional on BP exercising its 42.5% option (by 11 Dec) and a permit extension.

farm in farm out agreement

Lowry-1 (Beach 100%) is a gas and condensate discovery that flowed 9.4 MMscfd, supporting the Middleton expansion from 25 to 40 MMscfd. Crawford-1 also found gas and extends the Brownlow Field. Haselgrove-3 in the Otway is sidetracking after a stuck tool.

drilling result

Retail entitlement offer closed 16 October raising about $102m at $0.75, taking the total to about $301m for the Lattice purchase. Retail take-up was about 53%; Seven Group takes the ~64m unclaimed shares, lifting its stake to 25.6%.

capital raising announcement

Beach's institutional entitlement offer raised about $201m of the $301m, with roughly 98% take-up including Seven Group. The $100m retail offer at $0.75 a share (3 for 14) opens 5 October and closes 16 October.

capital raising announcement

Beach agrees to buy Lattice Energy from Origin for $1,585m, funded by a $301m 3-for-14 entitlement offer and up to $1,575m of new debt. It lifts 2P reserves about 200% to 232 MMboe and FY18 production guidance to 25-27 MMboe.

asset acquisition disposition

Origin announces it will sell Lattice Energy to Beach for $1,585m, effective 1 July 2017, subject to New Zealand approvals. Origin keeps long-term gas supply from Lattice's production. Seller's view of the deal Beach announces separately.

asset acquisition disposition

FY17 results: net profit $387.5m, underlying profit $161.7m (up 353%), revenue $662.4m, versus a $588.8m statutory loss in FY16. Final dividend of 1 cent is declared, payable 29 September, and the dividend reinvestment plan is suspended.

annual report

Reserves at 30 June 2017: 2P up 7% to 74.7 MMboe (from 69.8), 1P up 25% to 37.5 MMboe, 3P 138.3 MMboe, a 179% 2P replacement ratio. 2C contingent resources fell 25% to 152.9 MMboe, mainly from removing Nappamerri Trough unconventional gas.

resource reserve update

Beach guides FY18 production to 10.0-10.6 MMboe (FY17 guidance was 10.3-10.7) and capex to $220-260m, up from about $155m in FY17. It plans up to 78 wells and targets over 10 MMboe in FY19 and FY20.

other

Beach confirms the Marauder-1 Birkhead oil discovery in ex PEL 104 (Beach 40%): 655 bopd on test, up to 8.6 m net pay in a 17.5 m column. To be cased and brought online in coming months.

drilling result

Beach completed its FY17 operated gas campaign with three liquids-rich discoveries from four wells, including Mokami-1 (8.6 MMscfd on test), adding a preliminary 3.4 MMboe of 2P reserves. Separately, the Hoplite-1 oil well in PEL 182 had oil shows but was plugged and abandoned for insufficient pay.

drilling result

Beach plans to drill Haselgrove-3, a conventional gas exploration well in the onshore Otway Basin (PPL 62, 100%), targeting a 34 Bcf prospect at about 32% chance of success. A $6m South Australian PACE grant, subject to documentation, would cover 40-50% of cost. Drilling is expected in Q1 FY18.

drilling scheduled

Half-year to 31 December 2016: net profit $103.4m (versus a $600.1m loss a year earlier), underlying profit $88.7m, revenue $345.4m. Cash was $298.2m. A 1 cent fully franked interim dividend is declared, after the 0.5 cent final paid in September 2016.

half year report

FY17 production guidance raised to 10.3-10.7 MMboe (from 9.7-10.3). Capex guidance cut to $170-185m (from $180-200m) while the drilling program expands to 16 operated wells (+3) and up to 42 non-operated wells (+5). Kangaroo-1 is on extended production test.

other

Beach signed a 12-month gas sales agreement with Adelaide Brighton Cement for Western Flank gas, starting 1 January 2017 and replacing the existing ex PEL 106 raw gas contract. Its first industrial gas customer; Beach expects a material uplift in net revenue from Western Flank gas.

contract award

Mike Dodd becomes Chief Operating Officer from 3 January 2017, ending Kevin Welsh's four-month acting stint. Jeff Schrull (from Cue Energy) joins as Group Executive Exploration and Development, and Kevin Hollingsworth as a new Group Executive Human Resources. Follows the organisational review.

director officer appointment

September-1, the second FY17 exploration well, found oil in the Poolowanna Formation of 100%-owned ex PEL 91, flowing 210 bopd on test. Cased as a future producer. Beach has now made two discoveries in two exploration wells. Further testing is planned to size the resource, with appraisal possible in FY18.

drilling result

Kangaroo-1, the first of 10 FY17 exploration wells, found a 20 m gross oil column in the Birkhead Formation, flowing 320 bopd on test in 100%-owned ex PEL 91. Production is possible by Q3 FY17. Two follow-up prospects are identified, and Beach will reassess its FY17 drilling and capital program.

drilling result

At 30 June 2016, reserves are 1P 29.9, 2P 69.8 and 3P 132.6 MMboe, down from 2P 74.4. Contingent resources (2C) fall to 205.2 MMboe from 676.6. Unconventional NTNG resources are cut to nil, as the project is unlikely to be commercial in the medium term.

resource reserve update

FY16 result: statutory net loss $588.8m, underlying profit $35.7m (down 61%), revenue $564.6m (down 23%). A final dividend of 0.5 cents per share is declared, payable 30 September 2016, after no interim dividend. Net asset backing is $0.58 per share.

annual report

Beach completes the sale of Beach Egypt, holding the 22% Abu Sennan interest, to Rockhopper, ending its Egypt exposure. Cash is up to US$20.5m, with US$10.8m paid at completion and about US$7.4m deferred over 12 months.

asset acquisition disposition

Beach agrees to sell its Kenmore-Bodalla oil permits in Queensland, its only operated Queensland Cooper production (30 kbbl in the June quarter), to Bridgeport, a New Hope subsidiary. Terms are confidential, with modest cash expected. Completion is due by end of Q2 FY17.

asset acquisition disposition

FY17 guidance: capex $180-200m, about 55% discretionary, with more going to Western Flank exploration and less to the Delhi JVs. Production is guided at 9.7-10.3 MMboe, above FY16's 9.5-9.8 guidance. FY17 guidance was the open item from July.

investor presentation

Seven Group's CEO Ryan Stokes joins the board as a non-executive director. Seven Group now holds 22.89% of Beach, up from about 13.79% earlier in the context. Long-serving director John Butler, on the board since 1999, resigned.

director officer appointment

Beach lifts estimated annual merger savings to $40m, from $28m, with the Sydney office closing by 30 April. FY16 production guidance rises to 9.5-9.8 MMboe from 8.0-8.6, helped by ex PEL 91 and the merger. Capex stays at $180-210m.

production update

Revised Egypt sale to Rockhopper is now all cash, up to US$20.5m, replacing the earlier cash-and-shares deal: about US$11.9m at completion and about US$8.6m over the next 12 months. Main conditions are satisfied; completion targeted by end of FY16.

asset acquisition disposition

Beach will withdraw from the BMG gas fields joint venture, giving its 35% interest to Cooper Energy for nil consideration, effective 27 October 2016 subject to approval. This replaces the earlier plan for Cooper to buy 65% while Beach kept 35%. Beach cites not wanting to fund Manta appraisal.

asset acquisition disposition

Beach identifies $28m a year of merger cost savings, above the earlier $20m estimate, fully realised in FY17. Headcount falls by 56 to 226 by 30 April. US$125m Drillsearch convertible notes will be redeemed around 11 April from cash, saving about $7m a year.

other

Drillsearch confirms the scheme has been implemented and it is now a wholly owned Beach subsidiary. It will apply today to be removed from the ASX official list. Former holders receive Beach shares, trading 2 March.

business combination

The Drillsearch merger is complete: Drillsearch is now a wholly owned Beach subsidiary and new Beach shares are issued today, trading 2 March. It adds 19,000 km2 of gross Cooper Basin acreage; integration targeted by 30 June 2016, with about $20m of synergies.

business combination

Half-year loss to members was $600.1m (against underlying profit of $9.4m), after $634m of pre-tax impairments. Revenue fell 36% to $274.4m. No interim dividend will be paid. This confirms the impairments flagged in January.

half year report

The Federal Court approved the Drillsearch scheme. Drillsearch shares are suspended from close of trading on 18 February, with the record date 25 February and implementation expected 1 March 2016, when Drillsearch becomes a wholly-owned Beach subsidiary.

business combination

Drillsearch shareholders approved the Beach merger scheme, with 98.88% of votes cast in favour. The second court hearing is set for 18 February 2016, and implementation is expected in early March.

business combination

Beach narrowed FY16 production guidance to 8.0-8.6 MMboe and cut capex guidance to $180-210m (from $240-270m). Cash was $164m at 31 December. It expects H1 impairments of $450-650m pre-tax, citing lower oil price forecasts.

other

Beach appointed Matthew Kay, currently at Oil Search and formerly Woodside and Santos, as CEO from 17 July 2016 or earlier, on $900,000 fixed pay. He replaces Acting CEO Neil Gibbins, ending the CEO search that had been open.

director officer appointment

The Federal Court ordered a Drillsearch scheme meeting for 27 January 2016. The independent expert (Ernst & Young) concluded the Beach merger is fair and reasonable and in holders' best interests. The Drillsearch board unanimously recommends a vote in favour.

business combination

Beach signed a $530m senior secured syndicated debt facility to replace its existing lending, initially drawn to $170m to refinance borrowings and letters of credit. It has five tranches including a $100m acquisition facility, with improved pricing and terms, subject to conditions precedent.

debt financing

Maroochydore-1, spudded 6 October with Beach earning 45%, found oil shows but a water-saturated Hutton Sandstone and was plugged and abandoned, a dry hole. Cougar East-1 (Beach 23.2%) found gas above estimates, the third Windorah discovery. Tirrawarra-87 also exceeded pre-drill estimates.

drilling result

Beach agreed a scheme to acquire Drillsearch it does not already own (~4.56%), paying 1.25 Beach shares per share, valuing Drillsearch at $0.83 (27% premium). Drillsearch holders would own ~30% of the combined group; ~$20m a year synergies targeted. Drillsearch vote expected late January 2016.

business combination

Beach began its FY16 operated drilling program by spudding the Maroochydore-1 oil exploration well in ATP 924, where it is farming in to 45%. Up to 16 operated wells are planned in FY16, with Thylungra-2 next.

drilling spud

The Egypt sale to Rockhopper will not proceed because a joint venture partner exercised pre-emption rights over Abu Sennan. The pre-empting party or parties, confirmed after 16 October, will pay US$20.4m cash, subject to Egyptian approvals. This is close to the US$22m headline price, but all cash.

asset acquisition disposition

Managing Director Rob Cole resigned on 16 September, staying until 14 October, because family matters in Perth rule out a full-time role in Adelaide. This resolves his leave. Neil Gibbins stays Acting CEO while the board begins a search for a replacement.

director officer appointment

Existing ATP 1056 partners exercised pre-emptive rights over AGL's 40% interest. If their conditions are met, Beach's $1.15m agreement to buy it will be terminated, so the deal and Beach's operatorship look likely to fall away.

asset acquisition disposition

FY15 statutory loss of $514.1m (FY14 profit $101.8m) on revenue of $735.5m, down 30%; underlying NPAT was $90.7m. Final dividend is 0.5 cents (1.5 cents for the year, vs 4.0), paid 25 September 2015.

annual report

Beach expects $449m after-tax non-cash impairments in H2 FY15 ($614m for the full year), mainly Delhi after the reserve cuts, the NTNG project after Chevron's exit, and Egypt to reflect the sale proceeds. No cash impact, per management.

other

At 30 June 2015 Beach's 2P reserves fell to 74.4 MMboe from 85.6 (1P 32.4, 3P 144.8); 2C contingent resources are 676.6 MMboe. A 7.9 MMboe Delhi downgrade outweighed a Bauer field increase (Bauer net 2P 3.9 MMbbl).

resource reserve update

Chief Operating Officer Neil Gibbins becomes Acting CEO while Managing Director Rob Cole takes personal leave for family matters. Cole only became MD in March 2015; no return date is given.

director officer appointment

Beach's strategy review sets a goal of becoming Australia's premier multi-basin upstream oil and gas company, focused on the Cooper Basin, east coast gas and growth beyond it. It cites about 15% corporate cost savings for FY16 and confirms exits from Romania and Egypt and a Tanzania farm-down.

investor presentation

Beach agreed to buy AGL's 40% operating interest in oil-producing ATP 1056, on the Cooper Basin's south-eastern flank, for $1.15m. This is 20% registered plus a right to earn another 20%. Completion needs conditions including Queensland government approval.

asset acquisition disposition

Beach agreed to sell its Egyptian subsidiary, holding the 22% Abu Sennan interest, to Rockhopper for up to US$22m: US$11.5m cash plus Rockhopper shares. Completion is expected late 2015 or early 2016 and an impairment will be booked in FY15 results.

asset acquisition disposition

FY16 guidance: production 7.8-8.6 MMboe, below FY15's 9.2, and capex $240-270m versus $416m in FY15. This is the major cut flagged in April. Cash was $170m at 30 June with $150m drawn and $150m undrawn debt.

other

Gas deliveries began on 1 July 2015 under the long-term Origin gas sales agreement, up to 139 PJ over eight years with oil-linked pricing. Volumes are expected to ramp up during FY16 while legacy contracts continue; this starts the deal announced in 2013.

material agreement

Beach transferred its 30% interest in Romania's Block 28 Est Cobalcescu to operator Petroceltic for nominal consideration, with Romanian regulatory approval. Beach has no further commitments in Romania, completing its exit.

asset acquisition disposition

Woodside will not enter the next exploration period of the Lake Tanganyika South block in Tanzania, so the pending farm-in to take 70% falls away. Beach keeps 100% and operatorship and is assessing its options.

farm in farm out agreement

An independent review by DeGolyer and MacNaughton lifts ATP 855 gross 2C gas contingent resources by 943 Bcf, from 629 to 1,572 Bcf (1C 343, 3C 5,841). Based on the 2014 Nappamerri Trough flow tests. Commercial development still needs longer-term deliverability and gas sales agreements.

resource reserve update

Beach confirms Chevron will not join Stage 2 of the Nappamerri Trough gas project, returning its interests for nil payment. Beach goes to 100% of PRLs 33-49 and 64.9% of ATP 855. Beach's 2C resources rise 807 Bcf to 2,766 Bcf. Spend is minimal while Beach seeks new partners.

farm in farm out completion

Icon said Chevron will not join Stage 2 in ATP 855 because the project does not fit its global portfolio. Beach's interest rises to 64.9% as operator, with Icon unchanged at 35.1%.

farm in farm out completion

Stanleys-1 (PRL 171, Beach 40% operator) is a new Birkhead oil discovery: 7m gross interval, test rate calculated at 280 bopd. Bauer-23 hit the Namur about 3m high with a preliminary 6m of net oil pay. Both to be cased as future producers.

drilling result

Holders have put more than 90% of the $150m 3.95% convertible notes for redemption on 3 April, so Beach will redeem all of them using its bank facility, which it says costs materially less. Pro forma: $150m drawn, $150m undrawn, plus cash.

debt financing

Robert Cole starts as Managing Director on 10 March 2015, earlier than the planned 1 June. Reg Nelson, who led Beach for 23 years, leaves as MD and director the same day.

director officer appointment

Senex reports Martlet North-1 (Beach 40%) is a Namur oil discovery with 3.2 metres of net pay, 1.1km from the Martlet-1 producer. Cased and suspended as a future producer; tie-in timing depends on field development planning. Resolves the pending result.

drilling result

Half-year to 31 Dec 2014: revenue $431m (down 23%), statutory loss $79.1m after $223.8m pre-tax impairments, underlying profit $72.4m (down 54%). Interim dividend 1.0 cent, down from 2.0 cents. Confirms the impairments flagged on 13 Feb.

half year report

Half-year results presentation repeats the figures: underlying profit $72m, cash $249m, guidance unchanged. New detail: a divestment process for Egyptian interests has started, with a data room opened. Capex cut is about 20% in the second half.

investor presentation

Beach completes Stage 1 of its Nappamerri Trough gas program: 18 wells, 16 fracture stimulated. Boston-2 in PRLs 33-49 had down-hole mechanical issues, minimal gas flowed, and it will be plugged and suspended. Chevron has up to 60 days from 13 Feb to decide on Stage 2.

drilling result

Beach expects half-year non-cash impairments of $166m after tax ($224m before tax) on Cooper Basin interests ($136m) and Romania ($30m). Romanian interests are written to nil, with no further exploration scheduled. Beach attributes it to lower oil prices (US$55/bbl Brent assumed for 2015).

other

Seven Group Holdings says it has a relevant interest of 13.79% in Beach, held in its investment portfolio. Its CEO calls Beach well managed with strong assets. The text states no takeover intention; a large new holder is now on the register.

other

Beach narrows FY15 production guidance to 8.9-9.4 MMboe (from 8.6-9.4) and cuts FY15 capex guidance to $430-470m from $450-500m, citing lower oil prices. Initial H2 cuts are up to $55m, with further cuts possible once Santos gives Cooper JV spending plans. Cash was $249m at 31 December, with an undrawn $300m facility.

other

Beach books a first 2P reserve for the Martlet oil field in PEL 104/111: 589 kbbl gross (1P 214, 3P 1,634), of which Beach holds 40%. Facilities have cost about $4.1m and are complete. It was not in FY15 production guidance.

resource reserve update

Beach books a first 2P reserve for the Balgowan oil field in PEL 91: 344 kbbl gross (1P 86, 3P 1,530), with Beach holding 40%. Development is estimated at about $1.3m, pending joint venture approval, with tie-in to the Stunsail facility before FY15 end. Not in FY15 guidance.

resource reserve update

Beach signs a transitional gas sales agreement with Origin to separately sell its own SACB and SWQ gas from 1 January 2015, about 2.3 PJ to 30 June 2015. Terms match the original Origin deal. Marks Beach's first separately marketed Cooper Basin gas.

material agreement

Beach appoints Robert Cole, until recently a Woodside executive director, as Managing Director from 1 June 2015 or earlier. Fixed pay is $1.2m a year. He succeeds retiring MD Reg Nelson, resolving the open successor search.

director officer appointment

Bauer-19 in PEL 91 (Beach 40% operator) found 8.7m net Namur oil pay against 4.0m predicted, and with Bauer-15 may lift Bauer's recoverable oil. Stunsail-1 flow tested at 7,920 bopd combined. Gives reserves upside beyond current guidance; no reserve figure yet.

drilling result

Beach agrees to fund more of the expanded 974 sq km Flanagan 3D seismic survey in offshore Otway permit T/49P, lifting its interest from 20% to 30% (3D Oil 70% operator). Final cash cost depends on survey cost. Builds on its 20% acquisition earlier this year.

farm in farm out agreement

Beach announces the first Namur Sandstone oil discovery in the PEL 104/111 joint venture (Beach 40%, Senex 60% operator): Martlet-1 found 6m net pay. It offsets the run of dry holes there; Beach also plans Eastern Flank wells in H1 2015.

drilling result

Results presentation shows record production of 9.6 MMboe, sales revenue of $1.05bn, cash of $411m and an undrawn $300m facility. Beach is reviewing its international assets, with some possibly to be sold, after the Egyptian impairment. Inference: a possible strategy shift toward Australia.

investor presentation

At 30 June 2014, Beach reports 2P reserves of 85.6 MMboe, down from 92.7, and 2C contingent resources of 466.5 MMboe, up from 448.9. Unconventional 2C is 362.4 MMboe, including a 55 MMboe net Nappamerri increase.

resource reserve update

FY14 statutory profit was $101.8m, down 34% after $162.2m of non-cash writedowns, on revenue up 51% to $1.06bn. Final dividend is 2.0 cents, fully franked, paid 26 Sep 2014. Confirms the figures flagged on 22 August.

annual report

Beach will book non-cash writedowns of $162.2m for FY14: $148.6m on Egyptian exploration assets and $13.6m writing off Paralana geothermal. Statutory NPAT is expected at $101.8m against a record underlying $259.2m.

financial restatement

Beach discovers oil at Balgowan-1 in PEL 91 (Beach 40% operator, Drillsearch 60%), with about 9m gross oil, extending the oil fairway northeast of Stunsail. Burners-1 is next; Beach also plans Eastern Flank wells in H1 2015.

drilling result

Elliston-2 in PPL 249 (Beach 75% operator, Cooper 25%) was plugged and abandoned at 1,660m with only 1m of oil pay, non-commercial. Seismic reprocessing follows; the development well did not accelerate production.

drilling result

Beach guides FY15 production of 8.6-9.4 MMboe, below FY14's 9.6 MMboe, with capex of $450-500m. It says cash of $411m and the $300m facility fully fund the program.

other

Beach agrees to farm into Drillsearch's ATP 924 in the Queensland Cooper Basin, funding about 150 km of 3D seismic and an exploration well, then a second well and past costs to earn 45%. Drillsearch stays permit operator.

farm in farm out agreement

Shelly-1, final well of the PEL 92 campaign (Beach 75% operator, Cooper 25%), was plugged and abandoned at 1,942m with non-commercial hydrocarbons. All three campaign wells failed to find commercial oil. Rig moves to Elliston-2 development well.

drilling result

Beach farms out 70% of its 100% Lake Tanganyika South Block to Woodside, ending the farm-out talks. Woodside reimburses back costs, funds seismic over 12 months and contributes to a capped first well. Beach stays operator; Tanzanian consents required.

farm in farm out agreement

Beach confirms the 28.49 Tcf (P50) ATP 855 prospective resource and says four-well fracture stimulation, starting with Geoffrey-1, is expected Q1 FY15. PRLs 33-49 over old PEL 218 granted for up to 15 years. Nepean-1 flowing 0.7 MMscfd, Marble-1 0.3.

regulatory community update

Icon reports a DeGolyer & MacNaughton best estimate of 28 Tcf gross unconventional prospective gas resource in ATP 855 (Beach 46.9% operator), Icon's share 10 Tcf. It is prospective, not contingent; stimulation of four wells is needed first.

resource reserve update

Bungaloo-1 in PRL 32 (Beach 70% operator) was cased and suspended at 3,713m with encouraging gas shows. Core results support unconventional potential, and good Sawpit Sandstone reservoir quality in Jolly-1 shifts focus to conventional gas in the Penola Trough. No flow test yet.

drilling result

Beach agrees to buy 20% of the offshore Otway permit T/49P from 3D Oil for $3m cash, with 3D Oil operating. It extends Beach's onshore Otway position offshore, near the Thylacine and Geographe gas fields. Subject to regulatory approvals.

asset acquisition disposition

3D Oil announces Beach will pay $3m for a 20% interest in the T/49P offshore Otway permit, with 3D Oil keeping 80% and operatorship. This is the counterparty's side of the Flanagan deal; a 755 km2 seismic survey is planned for late 2014.

asset acquisition disposition

Beach books preliminary Stunsail-1 gross 2P reserves of 1.6 MMbbl (1P 1.0, 3P 2.5), Beach 40% share. This upgrades the March discovery, which Drillsearch had put at 0.67 MMbbl 2P. A ~$4m standalone development is targeted for June quarter 2015, pending JV approval.

resource reserve update

Pennington field gross 2P oil reserves rise from 1.7 to 2.7 MMbbl after Pennington-2 and Pennington North-1 (Beach 40% operator). A ~$6m tie-back to the Bauer facility is targeted for June quarter 2015, pending JV approval.

resource reserve update

Cooper Energy agreed to buy a 65% interest in the offshore Gippsland BMG gas and liquids project, 50% from ROC Oil and 15% from Beach, and to become operator. Beach will keep 35% after the deal, which needs regulatory approval.

asset acquisition disposition

Stunsail-1, a new oil discovery in PEL 91 (Beach 40% operator, Drillsearch 60%), found a 10m oil column in the McKinlay/Namur, 4m in the Mid-Namur, and oil at over 250 bopd from the Birkhead. Beach's most northerly PEL 91 find; volumes still being assessed.

drilling result

South Australia has offered Petroleum Retention Licences over all of PEL 218, securing tenure for up to 15 years. But stimulation of Boston-1 and Boston-3 hit mechanical problems, and Holdfast-2 flowed only 0.25 MMscfd. Mixed result for the unconventional program.

regulatory community update

Half-year to 31 Dec 2013: revenue up 62% to $559.5m, NPAT up 267% to $160.5m (underlying $158.1m). Dividends total 2.0c (1.0c interim plus 1.0c special), record date 7 March 2014. Confirms the strong oil-driven quarter already reported.

half year report

Bauer-12 in PEL 91 found a nine-metre oil column, adding a preliminary 2.5 million barrels to Bauer 2P reserves. Bauer is producing over 13,000 bbl/d gross, above its flowline capacity, so trucks fill the gap. Beach holds 40%.

resource reserve update

Beach lifted FY14 production guidance to 9.2-9.6 MMboe (from 8.7-9.3) on strong Western Flank oil, and capex to $450-500m (from $420-480m). It still expects to fund capex in full, with $404m cash and a $300m facility.

other

Beach and Cooper Energy swapped equity in the Otway Basin. Cooper gets 30% of PEL 494 and PRL 32 and falls from 65% to 30% in PEL 495. Beach operates all three; Jolly-1 (4,070m planned) and Bungaloo-1 are due from December 2013.

farm in farm out agreement

Managing Director Reg Nelson extended his contract from 30 June 2014 to 1 July 2015. The board will start a search for his successor now to allow a smooth handover.

director officer appointment

The Cobalcescu South well spudded offshore Romania (Beach 30%), targeting 3,100m. The operator's gross P50 prospective resource is 262 Bcf in the upper Pontian and 142 Bcf in the lower Pontian. Two more wells are planned for 2014.

drilling spud

Cooper Energy says Victoria granted Otway Basin permits PEP 150 and PEP 171, with Beach/Mawson holding 50% and 75% respectively and operating both. Seismic is planned for 2014, followed by drilling.

regulatory community update

FY13: revenue $700.5m (up 13%), NPAT $153.7m (down 6%), underlying NPAT a record $140.8m. Final dividend 2 cents, full year 2.75 cents. Net asset backing is $1.41.

annual report

At 30 June 2013, 2P reserves are 92.7 MMboe (100% replacement) and 2C resources 448.9 MMboe, down 4%. This is lower than the 466 MMboe earlier, owing to the Chevron farm-out and revised booking rules. A material unconventional upgrade is expected at FY14 end.

resource reserve update

El Salmiya-2 in Egypt (Beach 22%) flowed 3,530 bopd and 4.7 MMscfd from the Kharita Formation, a new oil zone in the concession. The operator estimates gross 2P of 18.5 MMbbl oil and 142 Bcf gas. This follows the shows reported in July.

flow test result

Beach refinanced its $150m facility, due to expire in 2014, with a new secured $320m facility: $150m three-year, $150m five-year and $20m letter of credit. It was arranged by ANZ and CBA, with HSBC and NAB joining. Beach says terms are more competitive.

debt financing

Guidance for FY14: production 8.7-9.3 MMboe (FY13 was 8.0) and capex $420-480m, including $90-100m on unconventional exploration. Beach expects to fund it in full from cash ($348m), the facility and operating cash flow. Same-day amended release corrects the title.

other

Icon exercised its put option, obliging Beach to buy a further 4.9% of ATP 855 for US$18m. Beach rises from 42% to 46.9% on completion scheduled 25 June. This follows the Chevron farm-in deal of February.

asset acquisition disposition

Beach reports four Western Flank oil discoveries (Kalladeina-2, Sceale-1, Congony-1 in PEL 91; Rincon North-1 in PEL 92) potentially adding up to 1 million bbl gross. Net production hit a record above 10,000 bopd, meeting its June quarter target.

drilling result

Beach agrees key terms to farm into 50% of Bengal Energy's ATP 732 (Tookoonooka) in Queensland's Cooper Basin. Beach funds 100% of two wells and about 300 km2 of 3D seismic up to a cap. Subject to documentation and due diligence.

farm in farm out agreement

Chevron's first-stage farm-in is settled: 30% of PEL 218 and 18% of ATP 855, with cash paid. Beach now has about A$400m cash. Formal state approvals are still pending. This completes the deal signed 25 February.

farm in farm out completion

Drillsearch reports Kalladeina-2 in PEL 91 (Beach 40% operator) is a new oil discovery, with 5m net pay confirmed and about 400,000 bbl gross 2P estimated. Smoky-1 spudded 28 April. The Bauer pipeline is operating.

drilling result

Cooper Energy reports Rincon North-1 is an oil discovery in PEL 92 (Beach 75% operator), with a gross oil column of up to 7m. Sharples-1 reached 1,961m with no significant shows and will be plugged and abandoned. Wyomi-1 is next.

drilling result

Drillsearch (60% partner) says commissioning of the Bauer-to-Lycium oil pipeline starts the week of 22 April. The pipeline has 10,000 bopd capacity; PEL 91 output is expected to reach about 10,000 bopd gross by early May, up from trucking limits. This delivers the Bauer pipeline.

production update

Beach updates its unconventional program: Moonta-1 is down to 0.7 MMscfd after four months, Halifax-1 is at 1.7 MMscfd, and the second batch frac is delayed to May. PEL 218 and ATP 855 are described as pending Chevron farm-in; pilot production is now toward end of 2014.

drilling progress report

Beach signs its first separately marketed Cooper Basin gas contract: up to about 139 PJ to Origin over eight years, extendable two years to about 173 PJ. Supply starts July 2014 to June 2015, with oil-linked pricing. Implementation is conditional on operator acceptance.

material agreement

Beach confirms the new PEL 106B raw gas sales agreement with the SACB JV: 10 Bcf firm over three years, up to 35 MMscfd, with condensate and LPG linked to international prices. It follows the gas sales talks and the shut-in since 1 October.

material agreement

Drillsearch, Beach's 50% partner in PEL 106B, announces the new gas sales agreement with the SACB JV: 10 Bcf firm over three years, up to 35 MMscfd. Wet gas production restarted 17 March after the shut-in since 1 October; Canunda tie-in due June quarter.

material agreement

Sawpit-2 (PEL 495, Otway Basin) reached 2,585m and found no pay in the Sawpit Sandstone target, so it will be plugged and abandoned. Gas shows in the Casterton Shale keep the unconventional idea alive. Beach, paying 70% to earn 35%, operated the well.

drilling result

Beach farms out up to 60% of PEL 218 and ATP 855 to Chevron for potentially US$349m over two stages, via cash, carries and a US$35m bonus. Chevron can withdraw after each stage. Beach also grants Icon a put option for 4.9% of ATP 855 at US$18m.

farm in farm out agreement

Halifax-1 (ATP 855P, Beach 60% operator) began flowback on 11 February and was flowing 2.2 MMscfd, held back by a choke due to equipment temperature limits. Beach calls it the fourth vertical well in the program to flow gas; early rate, not stabilised.

flow test result

Moonta-1 (PEL 218, 100%) reached a maximum controlled 2.6 MMscfd, its best rate yet, versus about 2.1 MMscfd at Encounter-1 and Holdfast-1, and is now at 1.6 MMscfd. Beach says this confirms the basin centred gas play exists. Nepean-1 spudded; Halifax-1 fracs completed.

flow test result

Beach spudded Holdfast-2 on 10 December in PEL 218 (100%), the first horizontal unconventional well in the Cooper Basin. It will drill about 1.6 km laterally through the Murteree Shale and be fracced in about April 2013. Beach targets a pilot production program by second half 2013.

drilling spud

Oil is now flowing to Moomba through the new Western Flank flowlines, with output scaling up over December. Lycium-Moomba has 16,000 bopd design capacity; Bauer-Lycium pipeline is due for first production in early Q2 2013. This delivers the infrastructure underpinning FY13 production guidance.

production update

Beach announces a new oil discovery at Pennington-1 (PEL 91, 40% operator), with multiple oil columns in McKinlay/Namur and mid-Namur sandstones. Pre-drill upside is exceeded, with recoverable oil likely above 2 million barrels gross. Well cased as a future producer; Birkhead shows need further evaluation.

drilling result

Senex's Spitfire-2 (PEL 104, Beach 40%) found 6.5m net oil pay in the mid-Birkhead and was cased as a future producer. It follows Spitfire-1, plugged as uncommercial in February 2012, and confirms a new oil field about 2 km west of Growler.

drilling result

Bauer-9 (PEL 91, Beach 40% operator) found 10.7m net oil pay and will be cased as a producer, supporting Bauer and Bauer North as one pool. Drillsearch cited a 16 November 2P rise to 8.2 MMbbl gross, with a further upgrade expected around year-end.

drilling result

Bauer North-1 (PEL 91, Beach 40% operator) is a new oil discovery with about 3m net Namur pay, to be cased as a producer. Oil-water contacts suggest it may link to Bauer field. The reserves upgrade is delayed until Bauer-9 results are included.

drilling result

Beach farms into the Kaheru prospect off South Taranaki, New Zealand, taking 25% from NZOG (operator, keeps 35%; TAG Oil 40%). Beach pays its share plus the first US$3m of NZOG's well costs. Subject to ministerial consent; new country for Beach.

farm in farm out agreement

Beach began a ten-stage fracture stimulation of Moonta-1 (PEL 218, 100%) on 26 October, mainly in the Patchawarra, at about double the previous pumping rate. It is the first of ten wells to be stimulated this year; Streaky-1 then Halifax-1 follow. Flow testing runs several weeks.

drilling progress report

Beach nominates Fiona Bennett and Dr Douglas Schwebel for election at the 23 November AGM, replacing Chairman Bob Kennedy and Dr Neville Alley, who are not standing. Dr Schwebel is an ex-ExxonMobil exploration director. No new chairman is named in this notice.

director officer appointment

Beach says Halifax-1 (ATP 855P, Beach 60%) reached 4,267m and appears gas saturated through the Permian, with the thickest REM (~460m) so far. Fracturing is planned for late November; 2C resource guidance is expected in Q1 2013. Preliminary log interpretation.

drilling result

Senex says Mustang-1 (PEL 111, Beach 40%) free-flowed 6,700 bopd during clean-up and held about 800 bopd over a 10-day test with minimal pressure loss. An extended test targeting 2,000 bopd is planned. This resolves the earlier flow-rate question.

flow test result

Beach announces a new field oil discovery at Windmill-1 (PEL 92, Beach 75%): a 6m Namur oil column consistent with the 440,000 bbl recoverable upside estimate, plus Birkhead shows. It follows the Mustang-1 discovery and will be cased as a producer.

drilling result

Beach details a ten-well PEL 92 program (three development, seven exploration wells). Butlers-5 and -6 found 8m and 5m oil columns. PEL 92 produces over 3,500 bopd net, expected to exceed 4,500 bopd once tied into the Lycium-Moomba trunkline before year end.

drilling progress report

Beach signed a farm-in on 4 September for 30% of the Est Cobalcescu block, offshore Romania (Black Sea), with Melrose and Petromar. Cost is about US$8.4m in 2012 and an estimated US$24.8m over three years. Subject to Romanian approval; Beach's first Europe entry.

farm in farm out agreement

Beach's August drilling report repeats known results (Bauer-6/-7/-8, Tomcat-1 dry, Halifax-1 shale gas test) but adds a preliminary Bauer field estimate of over 10 million barrels recoverable (over 4 million net to Beach). Hoss-1 (WA-208P, Beach 10%) offshore was dry.

drilling progress report

Drillsearch reports Bauer-8 (PEL 91, Beach 40% operator) found 10m net Namur oil pay and will be cased as a producer, extending the Bauer field north. Two more appraisal wells are proposed by end 2012, and Drillsearch expects a further reserves increase.

drilling result

Senex reports Tomcat-1 (PEL 111, Beach 40%) found a sand channel but no hydrocarbons and was plugged and abandoned. Mustang-1 (almost 2,500 bopd in testing) is being completed for production, and Snatcher-7 is now drilling.

drilling result

FY13 guidance: production of 8.5 to 9.0 MMboe (versus 7.5 in FY12) and capital spending of A$350-450m, including A$120-150m on unconventional exploration. Beach expects to fund this in full from cash flow, A$379m cash and its A$150m facility.

production update

FY12 full-year report: revenue A$619m, profit after tax A$164m (versus a A$97.5m loss in FY11), record underlying profit A$122m. Final dividend 1.5c, making 2.25c for the year. Cash A$379m; production 7.5 MMboe.

annual report

Santos, operator of the Cooper Basin JV (Beach 20.21%), says the Moomba-191 vertical shale well stabilised at 2.6 MMscfd, peaking at 3.0. Beach says this supports its unconventional program, including a planned first horizontal well later in 2012.

flow test result

Partner Icon reports Halifax-1 (ATP 855P, Beach 60% on funding the first A$16m) spudded 4 August to 4,130m, with total depth in about 55 days. This is the first vertical well in Beach's second Nappamerri Trough gas permit.

drilling spud

Chairman Bob Kennedy, a director since 1991, will not seek re-election at the AGM expected 23 November 2012, citing governance guidelines on director tenure. Beach will run a formal process to find a permanent replacement.

director officer appointment

Beach confirms Bauer-5 (PEL 91, Beach 40% operator) hit 6m net Namur oil pay, extending Bauer north-east, and a new Birkhead oil pool flowing 1,160 bopd on test. Likely material to 2P reserves, though the size is unquantified; cased as a producer.

drilling result

Mustang-1 (PEL 111, Beach 40%) is a new oil field discovery: 4.5m gross oil column, 4m net pay, flowing at 2,484 bopd on test. Cased as a future producer, with Tomcat-1 next. Adds to the Snatcher and Growler successes.

drilling result

Beach and Icon bring forward ATP 855P unconventional gas with a vertical Halifax-1 well, now starting in July 2012 rather than a horizontal well in September. Beach funds the first A$16m, less Icon's A$1.75m, to hold 60%. This moves up the earlier Q3 timing.

farm in farm out agreement

Encounter-1 (PEL 218, Beach 100%) flowed a combined peak of up to 2.1 MMscfd after fracturing the REM section, confirming gas continuity across the Nappamerri Trough play. Frac crew returns September for Moonta-1, Streaky-1 and Boston-1. Tanzania seismic is 30% done, with hydrocarbon indicators.

flow test result

Beach will accept Cooper's shares-and-cash option for its 55.44% Somerton stake, receiving about 17 million Cooper shares and A$7.2m cash. Beach moves from majority holder in Somerton to a Cooper shareholder.

asset acquisition disposition

Managing Director Reg Nelson extended his employment contract to 30 June 2014, with an option to extend another year by mutual agreement. The chairman cited the Cooper Basin shale and basin-centred gas program. Retirement payment can be taken in instalments.

director officer appointment

Santos will permanently shut the Tantanna oil pipeline on 1 June over integrity concerns. Beach expects Western Flank output to fall from about 7,000 to 4,000 bopd net, cutting FY12 guidance to about 7.4 MMboe from 7.5. The new 15,000 bopd Lycium-Moomba trunkline is expected in Q4 2012.

production update

Bauer oil field (PEL 91, Beach 40% operator, Drillsearch 60%) started production at 800 bbl/d gross, trucked to Moomba. It is expected to reach 2,000 bbl/d, then 5,000 bbl/d once a pipeline to Lycium is commissioned by year-end. First oil was due by end June quarter.

production update