Beach Energy Ltd

Beach says it will accept Cooper Energy's takeover offer for Somerton, in which it holds a majority stake, unless a higher offer appears. It has not yet chosen between the scrip-and-cash or full scrip option. This resolves its pending board position.

business combination

Davenport 1 (PEL 94, Beach 50% operator) reached 2,102m and found over 110m of net coal, including one seam over 45m, well above pre-drill expectations per Strike. A sidetrack for cores follows, then the well is suspended. This builds on Marsden 1.

drilling result

Beach clarifies a Dow Jones article: it ended confidential 2011 talks on its Cooper unconventional program, but is again in confidential talks with certain parties on unconventional assets, still ongoing. It is finalising acquisition of 100% of PEL 218.

other

Southend-1 (PEL 107, Beach 40% operator, Drillsearch 60%) is a gas discovery. A brief 3-minute gas flow proved movable gas, though tool problems prevented a full test. It is cased and suspended for extended testing, and may tie into Middleton-Brownlow.

drilling result

Encounter-1 (PEL 218, Beach 100%) is flowing gas above 500,000 scfd after a single-stage Patchawarra fracture stimulation, flared and expected to improve. Holdfast-1 reached 2 MMscfd with seven stages. A six-week flow test follows, then shut-in until June/July.

flow test result

Beach completes the retail entitlement offer, raising A$78.7m at A$1.40. Retail holders took only about A$10.5m; underwriters take the remaining ~48.7m shares. Total raising is A$345.3m. Shares are allotted 3 May and trade 4 May.

capital raising announcement

Moonta-1 in PEL 218 (Beach 100%) reached 3,810m and appears gas saturated across a Permian zone over one kilometre thick, per mud logs. Encounter-1 fracture stimulation is done. Streaky-1 is next; this follows the Moonta sidetrack.

drilling result

Cooper Energy bid for Somerton Energy, in which Beach holds 56.22%, at about 21.8 cents per share (valuing Somerton at roughly A$31.5m). The offer needs 90% acceptance. Beach's board is considering its position and will announce it later.

business combination

Partner Drillsearch reports Haslam-1 (PEL 106B, Beach 50% operator) is a wet gas discovery. A drill stem test flowed 3.0 MMscfd with liquids, and the well is cased for extended testing. It resolves the earlier 'being evaluated' status and may link to Middleton-Brownlow infrastructure.

drilling result

Beach completes the institutional offer, raising about A$117m at A$1.40, and prices A$150m of five-year convertible notes at 3.95%, convertible at A$2.00. Both were heavily oversubscribed per management. A retail offer of about A$78m follows, closing 20 April.

capital raising announcement

Beach launches a A$345m raise: a fully underwritten 1-for-8 entitlement offer at A$1.40 (about A$195m, 11.1% discount to last close) plus about A$150m of convertible notes due 2017. Funds capex over 2-3 years across Cooper Basin, Egypt and Tanzania.

capital raising announcement

Senex reports Thunderchief-1, the next exploration well after Growler's successes, was plugged and abandoned with minor oil shows and poor reservoir in the target. Beach holds 40% of PEL 104. The rig moves to Growler-10.

drilling result

First Egyptian oil from Beach's 20% North Shadwan concession, from the NS377 field, initially restricted to about 1,000 bopd by pipeline. Trucking is expected in Q2 2012, and a second field (NS385) could lift output to 5,000 bopd gross by Q1 2013.

production update

El Salmiya-1 in Egypt's Abu Sennan concession (Beach 22%) is the fourth straight discovery. It flowed a combined 5,600 boepd, including 17 MMscfd of gas from Abu Roash C. Commercial production awaits approvals. Salwa-1 and Hawalli-1 have reached total depth, with results being analysed.

flow test result

Beach confirms Coolawang-1 (PEL 106B, Beach 50% operator) as a gas and liquids discovery, flowing 4.5 MMscfd from 2,656-2,661m with 50° API liquids. It is 2.3km from Canunda and could be developed with it if commercial. Extended production testing follows.

drilling result

Half-year to 31 December 2011: revenue $294.6m (up 11%), net profit after tax $56.1m (up 164%). Interim dividend 0.75 cents fully franked, with a 5% discount on the dividend reinvestment plan. Confirms the guided profit lift, mainly from the Esso royalty deal and higher oil prices.

half year report

Beach expects first-half FY12 reported NPAT of $50-55m and underlying NPAT around $50m, against $18.5m underlying a year earlier. It cites the Esso royalty renegotiation, a roughly 30% higher oil price ($113/bbl), better Cooper access and the Tantanna pipeline. Second-half underlying NPAT is expected to be higher.

other

Al Jahraa-1 in Egypt's Abu Sennan concession (Beach 22%) flowed oil at 835 bpd from the Abu Roash E zone and is called a commercial discovery. It follows GPZZ-4 and Al Ahmadi-1. Salwa-1 and Hawali-1, the last two wells of the six-well program, have spudded.

flow test result

Beach completed compulsory acquisition of the remaining Adelaide Energy shares, so it now owns all of the company. This concludes the takeover launched in November 2011 at 20c a share, giving Beach full ownership of the PEL 218 shale gas acreage.

business combination

Beach's Delhi subsidiary renegotiated its 2004 royalty with Esso Australia Resources (ExxonMobil). It becomes an annual payment on net cash flow, with a minimum $40m over five years plus a one-off $8m. Effective from 1 July 2011 to 31 December 2030; the underpayment claim is resolved.

material agreement

Beach produced first gas from Middleton in PEL 106B, its first operated gas production, sold under the gas sale agreement to the SACB JV. Rate is expected to reach 25 MMscf/d plus 1,250 bbl/d liquids; a five-well gas exploration campaign has started nearby.

production update

Beach's offer for Adelaide Energy closed with a 96.99% relevant interest. Beach will compulsorily acquire the rest, after which Adelaide shares will be suspended and delisted. Completes the takeover launched 7 November at 20c a share.

business combination

Beach gave notice to operators that it was withdrawing, as part of portfolio management, from the Durresi block in Albania (previously 25%) and four Ebro Basin permits in Spain (previously 25%). Its 20% South East July concession in Egypt expired with all financial commitments met.

asset acquisition disposition

Beach's relevant interest in Adelaide Energy rose to 90.1%, so it will compulsorily acquire the remaining shares after the 20c offer closes on 22 December. Adelaide shares will then be suspended and removed from the ASX. This follows the 71.46% stake reported on 18 November.

business combination

Partner Drillsearch says the PEL 106B joint venture (Beach 50% operator) signed a gas sale agreement with the Santos-led Cooper Basin group, interruptible to 30 April 2013. Middleton and Brownlow wet gas starts in December 2011; a five-well wet gas drilling campaign follows.

material agreement

Adelaide Energy's directors now unanimously recommend accepting Beach's 20c offer absent a superior proposal, and intend to accept for their own shares. Beach's stake is 71.46%. Reverses the board's earlier no-action stance.

business combination

Having passed 50.1% of Adelaide Energy, Beach says it will ask ADE to call a meeting to remove all its directors and replace them with Beach directors Davis, Butler and Moretti. Moves from bid to taking board control.

business combination

Beach reaches 50.96% of Adelaide Energy, giving it majority control within four days of launching its 20c-a-share offer. The offer stays open until 22 December, and Beach says a rival bid is highly unlikely.

business combination

Beach launches an unconditional on-market cash takeover for Adelaide Energy at 20 cents a share, valuing it at $94m. Beach already holds 19.95%; offer runs to 22 December. Beach says it removes Adelaide's funding concerns for its Nappamerri Trough gas work.

business combination

Drillsearch reports Basham-1 (PEL 91, Beach 40% operator) as a new oil discovery, with about 15m gross column and 4-5m net pay. Drillsearch estimates up to 3.5 million barrels oil-in-place (P50); the operator has not yet given a figure. It also hints at upside for Bauer.

drilling result

Beach confirms gas and condensate flows at both Abu Sennan wells in Egypt (Beach 22%): GPZZ-4 about 2,000 boe/d gross, Al Ahmadi-1 about 2,900 boe/d gross. Tie-in to infrastructure within 10km is expected. This resolves the earlier wait for test results.

flow test result

Beach signed a deal with private Territory Oil and Gas to earn up to 90% of onshore Bonaparte Basin permits and up to 55% offshore. Firm commitment is up to $5m for surveys, up to $36m if drilling options are exercised. First phase is due by end-2012.

farm in farm out agreement

Adelaide Energy shareholders rejected the option grant to Beach, so Beach instead took 59.5m ADE shares at $0.165 (about A$9.8m). This lifts Beach's stake to about 19.95%. ADE is Beach's 10% partner in PEL 218.

capital raising announcement

Drillsearch (PEL 91 partner, 60%) reports 2P reserves of 4.2 MMbbl gross for the new PEL 91 oil discoveries (including its own Arno), with Beach's operator estimates behind the Bauer, Hanson and Snellings figures. The JV approves an accelerated multi-field development. Bauer drilling ends by December quarter.

resource reserve update

Beach says mapping suggests Bauer field mean recoverable reserves of about 3.5 MMbbl gross, up from 2.0. A three-well appraisal program starts, with production expected in H1 2012. Butlers-4 should be online before end-2011, with a reserves upgrade expected.

drilling scheduled

Roadshow deck for US and Asian investors. Gives 2P reserves of 77 MMboe (up 17%) and 2P plus 2C of 660 MMboe (2C up 96%) at 30 June 2011. FY12 production guidance 7.5 MMboe and capex A$355.1m, 110 wells planned.

investor presentation

FY11 result: statutory net loss A$97.5m (FY10 profit A$33.1m) after impairments; underlying profit A$41.4m, up 7%. Net cash A$173.3m. Final dividend 1.0c, on top of the 0.75c interim. New A$150m facility replaced the A$35m one.

annual report

Beach has secured two Ensign rigs for a 2012 shale gas program in PEL 218 and ATP 855P. Ensign#16 (about January 2012) will drill vertical wells; the new Ensign#65 (about April 2012) will drill horizontal pilot wells. The aim is to expand the 2 Tcf booking.

contract award

Beach announces oil and gas shows at its first two Abu Sennan wells in Egypt, GPZZ-4 and Al Ahmadi-1, with flow testing continuing. Both wells lie within 10 km of pipeline infrastructure. Beach holds 22%; Kuwait Energy operates with 50%. Volumes not yet known.

drilling result

Beach signs with Senex to build Western Flank oil flowlines to Moomba (about $40m total, shared), commissioning around June 2012. Beach gets 40% of the Growler-Lycium link and 60% of the Lycium-Moomba trunkline. A six-well PEL 104/111 program is due from October, and PEL 91/92 tenure was extended 12 months.

material agreement

Beach commits $12.1m to Adelaide Energy: 14m shares at 16.5c now, then a further 59.5m shares and 75m options (40c strike, to 2016) if shareholders approve. This would give Beach 19.95%, deepening ties in the Nappamerri Trough shale gas play.

capital raising announcement

Beach booked an initial 2 Tcf gross contingent shale gas resource in PEL 218 (Beach 90%), over 330 MMboe or about five times its June 2010 reserves. It rests on 100 sq km around each of Holdfast-1 and Encounter-1. Independent review to follow.

resource reserve update

Beach announced two oil discoveries: Bauer-1 in PEL 91 (15m column, up to ~2 million bbl gross, online Q4 2011) and Rincon-1 in PEL 92 (5m column, up to 500,000 bbl gross). Bauer is the third PEL 91 well to succeed, after Hanson-1 and Snellings-1.

drilling result

Beach and Icon settled the ATP 855P dispute, dropping the Federal Court case. Icon transfers 40% to Beach (subject to Ministerial approval); Beach funds Icon's share of a ~A$16m gross horizontal pilot well bar Icon's A$1.75m. Icon gets 33.333% of PEL 218 Post Permian.

farm in farm out agreement

Holdfast-1 flowed gas at an average of 1.8 MMscf/d, reaching about 2 MMscf/d, from 3,100-3,500m, beating expectations for a vertical data-gathering well. A material shale resource booking is due in late July/early August, and Encounter-1 stimulation is expected in the December quarter.

flow test result

The PEL 92 joint venture approved a 12-month program to June 2012 of nine exploration wells plus 3D and 2D seismic, costing over A$24 million. It targets a risked mean gross reserve addition of about 1.8 million bbl. Beach holds 75%.

drilling scheduled

Beach replaced its A$35 million working capital facility with a A$150 million revolving corporate credit facility backed by Commonwealth Bank. It does not expect to use it immediately; it is meant to support the planned exploration and development campaign for FY2012. Beach was previously debt free.

debt financing

Parsons-5 in PEL 92 (Beach 75%) found a six-metre oil column, the program's fifth success. Beach's preliminary work points to a Parsons Field reserve increase of more than 800,000 barrels. Tie-in is expected in the second half; Wheatons-1 is next.

drilling result

Holdfast-1 fracture stimulation was completed in seven stages and the shales fractured vertically, which favours horizontal production wells. Flow testing starts early July for about three months, with a resource booking in early August. Encounter-1 stimulation slips to the December quarter.

drilling result

Beach sold its entire Ramelius Resources shareholding for A$25 million cash, a further A$3.3 million profit. Beach once held 22.7%. It calls the gold stake non-core and says the cash will help fund oil and gas programs.

asset acquisition disposition

Snellings-1 in PEL 91 is a second new oil field discovery in the five-well campaign (Beach 40% operator, Drillsearch 60%). A 2-hour test recovered 31.5 bbl of oil; extent of the oil column is uncertain, so side-wall cores are being taken. Online expected Q4 2011. Ensign #18 moves to Arno-1.

drilling result

Hanson-1 is a new-field oil discovery with a 7m oil column (5m net pay), up to 1 million bbl gross recoverable. First success of the five-well PEL 91 campaign; online expected Q3 2011, by truck. Beach has 40%.

drilling result

Beach appointed Belinda Robinson, outgoing chief executive of APPEA, as an additional independent non-executive director, effective immediately. She joined the existing board of six, taking it to seven.

director officer appointment

Beach will start fracture stimulation of Holdfast-1 in early June, then Encounter-1, with up to two weeks each. A resource booking is now targeted for July/August 2011. Pilot production wells slip to early 2012, driven by equipment availability.

drilling scheduled

March quarter production fell 9% to 1.52 MMboe, mainly from flood and weather impacts; revenue A$122.3m, cash A$160.6m. FY11 production guidance cut from about 7.0 to 6.5 MMboe, partly due to the Tantanna pipeline shutdown. Impress acquisition completed; Sundance shares part-sold for A$8.7m.

quarterly activities report

Beach's 22% interest in the Abu Sennan concession in Egypt is now finalised, with the Minister of Petroleum signing the Deed of Assignment. Kuwait Energy holds 50% as operator and Dover 28%. The first of six planned wells is drilling at 4,055m.

farm in farm out completion

Butlers-2 found a 5m oil column, the third success from three wells in the 16-well Western Flank program. It should lift recoverable Butlers oil by about 1.5 million barrels gross, subject to remapping. Online around mid-July.

drilling result

Holdfast-1 is finished, with 353m of shale target intersected, in line with pre-drill estimates. Encounter-1 and Holdfast-1 are to be fracture stimulated and flow tested from mid May, with a resource addition likely after. The release says 'Q3 2010', likely a typo for 2011 (inference).

drilling result

Beach has completed the compulsory acquisition of the remaining Impress shares and now owns all of Impress. This follows the roughly 96% held after the takeover offer. It resolves the Impress takeover thread.

business combination

Parsons-4 found a 5.5m oil column, a second success after Parsons-3 (9m), which flowed over 5,000 bbl/d with no water. PEL 92 output should reach about 6,000 bbl/d gross. Beach expects to book additional Parsons reserves; the amount is being assessed.

drilling result

Beach has started Federal Court proceedings against Icon over ATP 855. Beach asserts a current 25% entitlement plus an option over another 15%, from Icon's October 2009 acceptance of its offer. Icon disputes this. This escalates the dispute from the 18 and 21 March statements.

material agreement

A 840 sq km 3D seismic survey has started in the Durresi Block, offshore Albania, ahead of drilling in 2012. Beach pays 50% of costs for 25% interest, in exchange for an option to take 50% after reviewing the data.

drilling scheduled

Beach is in dispute with Icon over ATP 855P. Beach says it holds a current 25% interest, with an option to earn up to 40%. Icon says Beach has no interest. This puts Beach's earn-in next to its PEL 218 shale acreage in question.

material agreement

Parsons-3 found a 9m oil column in the Namur sandstone, the first well of the Western Flank program. Parsons-4 is next. The two Parsons wells should lift PEL 92 output from 4,700 to about 6,000 bbl/d. The program could add up to 6 MMbbl, about 9% of reserves.

drilling result

Senex lifted gross 2P reserves at the Growler and Snatcher fields to 7.9 MMbbl, 3.1 MMbbl net to Impress (now Beach). Ten wells are planned there. Beach has not yet assessed the figures independently and will do so at financial year end.

resource reserve update

Beach reaches 96% of Impress after acquiring Senex's 20% and will compulsorily acquire the rest, then Impress will be delisted. Beach expects a net loss for the half-year due to the BMG write-down, with underlying profit of about A$19m.

business combination

Beach will write down its 30% BMG project by A$118.5m pre-tax to a nominal value, plus a A$27.0m tax expense, in the half-year result. It is non-cash, and Beach remains committed to a possible Phase 2 gas development.

financial restatement

Santos lifted Cooper Basin 2P reserves by 39 MMboe. Beach assumes about 60 MMboe for the SACB JV, implying roughly 12 MMboe net to Beach, about 18% of its 66 MMboe 2P. Beach has not yet independently assessed this.

resource reserve update

Albania's Council of Ministers approved the Durresi Block agreement on 31 January 2011 (Beach 25%, San Leon subsidiary 75% and operator). The A4-1X discovery could hold up to 38 million barrels of condensate and 150 Bcf of gas; a 300 sq km 3D survey is planned, then appraisal drilling in 2012.

regulatory community update

Beach's interest in Impress is above 70% and the 8.5c offer will close 21 February without extension. Beach will compulsorily acquire the rest if it reaches 90%, and will ask Impress to seek removal from the ASX list.

business combination

Beach expects to spud Holdfast-1, its second Cooper Basin shale gas well, 24 km northeast of Encounter-1, targeting 3,625 m in about 60 days. Henderson Federal 4-26H in North Dakota (Beach ~18.4% working interest) hit 1,900 bopd during clean-up.

drilling spud

Beach contracted the second rig, Ensign #30, for an expanded 16-well Western Flank program from February 2011, with JV approval received. The Cooper Creek bridge and road upgrades are finished. Beach says success could materially lift reserves and FY11 production.

drilling scheduled

Encounter-1 is drilled, cased and suspended with 393 m of target shale, thicker than predicted, and appears fully gas saturated with no water. Five cores taken. Holdfast-1 is next, with multi-stage fracture stimulation of both wells expected from April.

drilling result

Cooper Energy farms out 35% of Otway Basin permit PEL495 to Beach for A$220,000 cash, 35% of back costs (A$220,000) and 70% of the first well. Beach will operate after that well. Subject to South Australian approval.

farm in farm out agreement

Beach's relevant interest in Impress passed 50% on 14 Dec, giving it majority control of the company. It says a rival bid is now highly unlikely. The 8.5c unconditional offer remains open to 24 Jan 2011.

business combination

Beach says the Roseneath shale in Encounter-1 (PEL 218, Beach 90%) looks about 200 m thick versus the 60 m expected, implying much more gas in place. The well is being deepened with extra coring; good gas shows continue.

drilling progress report

Beach plans a minimum 15-well Western Flank program from Jan/Feb 2011 using two rigs: Ensign #18 contracted and Ensign #30 under option to 21 Dec. Five wells in PEL 91, seven in PEL 92, three appraisal. Prospects range 0.5-5.5 MMbbl. Follows earlier delays to Western Flank drilling.

drilling scheduled

Beach and Impress mutually terminated the 22 Nov scheme of arrangement (8.25c cash), on condition that Beach makes an unconditional on-market cash takeover at 8.5c per share. This follows Victoria Petroleum's 20% stake and its stated intent to vote against the scheme.

business combination

Beach launched a recommended, unconditional on-market cash takeover for Impress at 8.5c per share, valuing it at A$75m, open to 24 Jan 2011. It replaces the scheme, holds 19.9% already, and Beach says ~A$189m cash funds it. Fits its aim to double production and reserves in 2-5 years.

business combination

Victoria Petroleum lifted its Impress stake to 20.00% and says it currently intends to vote against Beach's scheme, though it has no present plan for a rival bid. A 20% blocking stake threatens the 75% vote needed (inference).

business combination

Beach and ITOCHU have identified possible South Australian sites for a 1 million tonne a year LNG plant, needing about 60 PJ of gas a year and about A$1 billion. Follows their earlier MOU; no contract or final investment decision yet.

joint venture update

Beach agreed to acquire Impress Energy by all-cash scheme at 8.25 cents a share, valuing it at $73.1m, a 35.9% premium to the one-month VWAP. Funded from cash, it adds Cooper Basin western flank permits. Needs Impress shareholder approval in early 2011.

business combination

ROC, operator of Basker-Manta-Gummy (Beach 30%), says the joint venture will prepare to enter a non-production phase, suspending oil production from the FPSO. Remaining oil is expected to be recovered through a later gas development. Beach has expressed informal interest in supplying BMG gas to an LNG project.

joint venture update

Executive Director Hector Gordon, with Beach since 1996, resigns at end of October to become full-time Managing Director of Somerton Energy, in which Beach holds 56.6%. The board plans to recruit a new director with attention to diversity.

director officer appointment

Beach says the Cooper Basin JV has received a Santos proposal to supply 750 PJ of gas to its GLNG project from 2014 over 15 years, oil-linked. Beach's share would be about 152 PJ. Terms are not agreed and discussions continue.

material agreement

Adelaide Energy reports Encounter-1, the first PEL 218 shale gas well (Beach 90% operator), began drilling on 3 October after slipping from earlier dates. It is a vertical test to about 3,700 m, taking around 50 days, with Holdfast-1 next.

drilling spud

Beach and its BMG partners settled all claims with BW Offshore for a total US$32.5m cash payment within 14 days, with terms confidential. This resolves the dispute, which earlier context put at a claim of about US$90.1m.

joint venture update

Beach received the $43.2m Arrow contingent payment for Tipton West, taking total proceeds to $383.3m and cash to about $200m. Up to $26.8m more may follow. This resolves the receivable flagged in earlier results.

asset acquisition disposition

Drillsearch says Beach, as operator, considers the Brownlow, Canunda, Middleton and Udacha wet gas discoveries commercial. Beach puts their 2P reserves at 5.6 MMboe gross, converting contingent resources; Gaffney Cline's review of this is still in progress. It resolves the earlier testing-only position.

resource reserve update

FY10 net profit after tax fell to $33.1m (underlying $40.8m) on $489m revenue, hit by Cooper flooding and the Tipton West sale. 2P reserves held at 66 MMboe, contingent 297 MMboe, cash $170m. Final dividend 1c.

annual report

Somerton, 51.9% held by Beach per earlier context, is raising $13.8m at 13c: a $0.7m placement and a 2-for-1 rights issue, 90% underwritten. Beach backs it and signs a Strategic Alliance Agreement providing support services; $0.7m repays Mitsui.

capital raising announcement

Beach signed an unconditional farm-in with Lakes Oil, firming the 14 April conditional deal. It can earn up to 50% of onshore Gippsland PRL2 (Wombat tight gas) by spending $50m: 15% for $10m in stage one, then up to 50%. Needs Victorian government approval.

farm in farm out agreement

Beach agreed to buy from Kuwait Energy a 22% interest in Egypt's Abu Sennan concession and 15% of Mesaha, for up to US$33m of work programs over two years. Completion needs Egyptian approval; it widens Beach's Egypt portfolio beyond North Shadwan.

asset acquisition disposition

Beach agreed with Sundance to buy about a 15% net revenue interest in Bakken Sections 26 and 35, adding to its Section 25 stake. The Henderson 4-26/35H well starts early August, targeting about 600,000 barrels gross; it builds shale experience for the Cooper Basin.

asset acquisition disposition

Drillsearch says the PEL 91 joint venture (Beach operator 40%, Drillsearch 60%) plans up to five Western Flank oil wells, targeting 3.5 million barrels mean unrisked recoverable. Drilling needs a rig and should start by Dec 2010/Jan 2011; Chiton returns to production in early August.

drilling scheduled

Watson West-1 (Naccowlah Block, Beach 38.5% per Drillsearch) found 6-8 feet of oil pay and will be completed as a Basal Birkhead oil producer. Initial oil in place is estimated at 300,000-400,000 barrels, a small near-field discovery.

drilling result

Beach guides FY10 underlying profit of $30-40m and will write off about $64m of Bass Basin exploration. A further $43m from Arrow is booked if the Shell/PetroChina offer completes. BMG owners are weighing options beyond a replacement FPSO.

other

Beach signed the Production Sharing Agreement for 100% of the Lake Tanganyika South concession in Tanzania, completing the earlier exclusive negotiation right. The 11-year term has a well commitment in each of the second and third phases, with the option to relinquish at the end of each phase.

material agreement

Essential Petroleum Resources relaunches as Somerton Energy (ASX: SNE). Beach now holds 51.9% and is providing financial assistance. Hector Gordon becomes its Managing Director and Bob Kennedy chairman, completing the restructure Beach had proposed.

asset acquisition disposition

Paralana-2 temperature logs measured 173-176°C at about 3,670 m, with bottom-hole temperature extrapolated to 185-191°C at 4,000 m. That exceeds the 170°C target for economic development. Fracture stimulation is planned for late April 2010, a month later than Beach's earlier Q1 mini-frac indication.

well test result

Half-year to December 2009: revenue fell 22% to A$260.4m and net profit fell 73% to A$33.9m (underlying A$25.5m, down 50%). Cash is A$117.8m with no debt. An interim dividend of 0.75 cents is declared. The prior-period profit included large hedging and FX gains.

half year report

Independent reviewer RISC puts BMG's gross remaining 2P at 3.1 MMbbl at 31 December 2009, within ROC's earlier 3-5 MMbbl indication and down from about 18. Beach has not received the review; it will set its position and any impairment at FY10 results.

resource reserve update

NS377-5 (Beach 20%) reached 2,909 m after a 107 m gross oil column in the Kareem sandstone, less than NS377-3's 144 m but with better reservoir quality. Initial output is expected at 1,500-2,000 bopd, with full field production above 3,000 bopd in Q3 2010.

drilling result

Drillsearch says first commercial oil has started at Chiton, PEL 91 (Beach 40% operator, Drillsearch 60%), at a choked-back 245 BOPD, though production is currently shut in by rain. A 450 km2 Aquillus 3D seismic survey is planned from March 2010.

production update

Operator ROC expects BMG gross 2P reserves at 31 December 2009 to fall from about 18 MMbbl to 3-5 MMbbl, a preliminary estimate pending independent review. BMG (Beach 30%) is producing about 6,000 BOPD, expected to average 5,000 BOPD in 2010.

resource reserve update

Beach says ROC's preliminary BMG revision implies a 70-80% cut in gross 2P. That puts Beach's net reserve about 1 MMbbl below the 2.4 MMbbl booked, about 2% of its total. FY10 production guidance falls to 8.0 MMboe from about 9.0; any impairment is to be set at full-year results.

resource reserve update

Beach signs a non-binding MOU with Canada's ATCO to study gathering, processing, transport and possible gas-fired power for its Cooper Basin unconventional and contingent gas. Beach says early work suggests shale potential of 'many tens of TCF'. Builds on the Rentech and Sundance alliances.

material agreement

Chiton-1 (PEL 91, Beach 40%) flowed 2,434 bbl/d oil in an 80-minute test, with production expected by early January. North Shadwan NS377-3 (Beach 20%) is cased, with initial output of 1,500-2,000 bopd expected in Q2 2010. Burtocal North was plugged and abandoned.

flow test result

Egypt's NS377-3 (Beach 20%) hit a 144 m gross oil column and is expected to produce 1,500-2,000 barrels a day from Q2 2010. The nearby NS394-3 Burtocal North exploration well found no significant hydrocarbons and is being abandoned. Teen-1 is next.

drilling result

The Paralana geothermal project (Beach earning 21%) is awarded a A$62.762m federal REDP grant for a 30 MW demonstration plant. This resolves the open grant decision, conditional on a funding deed within 30 days and matched 2:1 by the joint venture.

regulatory community update

Beach agrees terms to earn up to 40% of Icon's ATP 855P, a gas-prospective Cooper Basin permit: 25% for seismic work, then 15% more by funding a well (capped A$7m). It becomes operator and will also subscribe A$3.5m for Icon shares, subject to documents.

farm in farm out agreement

Beach signs an MOU with Sundance Energy to jointly pursue unconventional oil and gas assets in Australasia, and will pay A$2.36m for 17.5 million Sundance shares at 13.5c (about 9%). A new push into shale alongside Beach's 179 mmboe unconventional contingent resource.

material agreement

Essential Petroleum Resources says Beach has made an in-principle restructure proposal: Beach's VIC/P46 debt converts to 51% of EPR's shares, Beach gets 50% of PEP168, and Beach nominees replace the board. It remains subject to binding documents and approvals; EPR shares stay suspended.

business combination

Wakefield-1 (Beach 23.33%, operator) hit oil and gas shows at many levels but wireline logs were inconclusive over the key zones. It was cased and suspended at 2,297 m; the joint venture will consider cased-hole testing. Not yet a discovery.

drilling result

Spikey Beach-1 in the Bass Basin reached 2,100 m with no hydrocarbon shows and is being plugged and abandoned. The well had targeted a mean 16 mmbbl. A dry hole for Beach (80%), Cue's Galveston (10%) and Exoil (10%).

drilling result

Drillsearch says Marino-1 in PEL 91 will be plugged and abandoned as a sub-commercial oil discovery: the Birkhead zone tested (about 3.5 barrels, 48.2 API) is too tight to flow commercially. Resolves the pending suspend-or-abandon decision. Beach holds 40%, Drillsearch 60%.

drilling result

Beach's FY09 results: net profit A$260.4m (FY08 A$63.7m), driven by the Tipton West sale; normalised profit A$64.2m. Record 9.6 mmboe production, debt-free, cash A$136.2m. 2P reserves 66 mmboe. Final dividend 1c, partly franked, plus the 2c special.

annual report

Beach's Drillsearch offer closed 14 August with Beach and associates holding 22.79% of Drillsearch. Compulsory acquisition will not proceed. The bid ends as a minority stake rather than control, resolving the takeover thread.

business combination

Drillsearch reports Chiton-1 (PEL 91) is an oil discovery with a 5.5 m oil zone in the Namur Sandstone. Estimated recoverable oil is 0.04-0.39 mmbbl, P50 0.12, well below the 0.7 mmbbl pre-drill mean. Beach holds 40%.

drilling result

Beach confirms Chiton-1 in PEL 91 as an oil discovery: 5.5 m oil zone in the Namur Sandstone, recoverable oil 0.04-0.39 mmbbl with P50 0.12 mmbbl. TD 2,010 m; to be cased for production. Beach 40%. First oil in PEL 91.

drilling result

Santos says Burnside-1ST1 in WA-281-P found a 65 m gross gas column in the Brewster Sandstone, low-permeability. Commercial significance is yet to be determined. Beach holds 7.3394%; this resolves the earlier evaluation of the well as a gas discovery, size unknown.

drilling result

Murninnie-1, the final PEL 92 well, was plugged and abandoned with no hydrocarbons in the secondary targets, the program's fourth dry hole alongside the Perlubie South and Butlers oil discoveries. The joint venture (Beach 75%) is considering new 3D seismic for follow-up wells.

drilling result

Beach sold all 20,613,699 Arrow shares received for Tipton West at an average A$3.7757, raising A$77.8m gross, nearly A$8m above their A$70m issue value. Together with the A$260m cash, up to A$70m of contingent payments remain possible. Completes the cash-out of the Tipton West sale.

asset acquisition disposition

Beach declares a fully franked special dividend of 2 cents per share, about A$21m, payable 30 September 2009 to holders on 31 August. It is funded by the Tipton West sale proceeds and is separate from the usual interim and final dividends.

dividend declaration

Adelaide Energy confirms Beach has completed acquiring 90% of the Permian and post-Permian in PEL 218 (Cooper Basin) for A$5.14m cash, carrying A$25m of exploration spend. Beach becomes operator and took 8m Adelaide Energy shares at A$0.12 (A$960,000). Completes the May farm-in.

farm in farm out completion

Willunga-1 in PEL 92 (Beach 75%) was plugged and abandoned with no commercial hydrocarbons, the program's third dry hole. The rig moved to Murninnie-1 (0.8 mmb mean), and the Basker-3 workover was completed with the rig heading to Basker-7.

drilling result

Cheetima-1 in PEL 92 (Beach 75%) was plugged and abandoned with no commercial hydrocarbons, a dry hole against a 1.2 mmb mean target. The rig moves to Willunga-1. Burnside-1 was sidetracked after mechanical issues, now Burnside-1ST1 at 2,320 m.

drilling result

Beach waived all conditions on its Drillsearch offer, making it unconditional, and extended it to 14 August 2009. Its voting power was 14.88%, and it said Drillsearch had put forward no alternative transaction.

business combination

Butlers-1 in PEL 92 flowed 2,600 bopd after completion on a 2.5 m perforation. Post-drilling estimate is about 1.0 mmb gross oil. Beach holds 75%. It will be connected to the Perlubie-Parsons gathering system over coming months.

flow test result

Beach has fully repaid the debt from its 2006 Delhi acquisition, over A$650m borrowed, using part of the A$260m Arrow cash from the Tipton West sale. It starts FY2010 debt free, resolving the earlier debt position.

debt financing

Glenn Davis becomes Deputy Chairman. Chief Operations Officer Hector Gordon becomes the newly created CEO, while MD Reg Nelson will focus on high-level strategic growth opportunities. Beach says it has a strong balance sheet and nil effective debt.

director officer appointment

Beach sends Drillsearch shareholders a letter urging acceptance of its offer, now open until 16 July. Says the offer is fully priced, with no intention to increase it, and values Drillsearch at about 3.05c per share (22% premium to pre-bid close).

business combination

Target Drillsearch, which Beach is bidding for, reports 2P reserves of 1.54 mmboe and 2C contingent resources of 7.81 mmboe, reviewed by Gaffney Cline. It says Beach held PEL 91 prospect data not in its bidder's statement. This is the target's argument against Beach's offer.

resource reserve update

Butlers-1 intersected a 4.5 m oil column in high-quality Namur reservoir and will be cased and suspended. It is the second straight oil discovery in the six-well PEL 92 program (Beach 75%). Rig moves to Cheetima-1, mean 1.2 mmb.

drilling result

Perlubie South-1 intersected a 3 m oil column in the Namur and is cased and suspended as a future oil producer. Rig moves to Butlers-1. Burnside-1 (Beach 7.34%) spudded 15 June in the Browse Basin; Paralana-2 spud expected next week.

drilling result

Beach sends its replacement bidder's statement and formal offer to Drillsearch holders: 1 Beach share per 27 Drillsearch shares, dated 15 June and closing 16 July 2009 unless extended. The offer is now formally open.

business combination

Tumby-1, the first of six PEL 92 wells (Beach 75%), found no hydrocarbons on wireline logs and is being plugged and abandoned at 1,845 m. The rig moves to Perlubie South-1, targeting a 400 kbbl mean recoverable oil volume.

drilling result

Adelaide Energy signs binding agreements for Beach to take 90% of PEL 218's Permian and shallower strata for A$5.14m cash plus carrying A$25m of gross spend. Beach also subscribes 8m shares at 12c. Resolves the April term sheet; needs ministerial approval.

farm in farm out agreement

Beach confirms its PEL 218 farm-in with Adelaide Energy for 90%: A$5.14m cash plus a further A$2.5m toward Adelaide's exploration share, and 8m Adelaide shares at 12c. Beach will operate and expects to drill at least one gas well in 2009/10. Subject to regulatory approval.

farm in farm out agreement

Beach completes the sale of its 40% Tipton West stake to Arrow for up to A$400m, receiving A$260m cash and 20,613,699 Arrow shares. Arrow's A$3.87 close on 19 May means the shares are worth more than the A$70m agreed value. Contingent payments remain.

asset acquisition disposition

Beach announces a conditional all-scrip offer for Drillsearch, the Cooper Basin partner it already holds shares in: 1 Beach share per 27 Drillsearch shares, valuing it at about A$50m (3.0 cents a share). Pre-bid agreements plus its holding give Beach 10.04%. Needs 90% acceptances.

business combination

Adelaide Energy signs a non-binding term sheet letting Beach acquire 90% of its Permian and deeper interest in PEL 218 in the Cooper Basin, plus a further investment in ADE. Binding documents are due within 30 days, subject to due diligence.

farm in farm out agreement

South July-1 sidetrack in Egypt (Beach 33.33%) reached 3,473 m; the targeted Yusr sands were water-saturated with no shows, so the well is being plugged and abandoned. A dry hole for the roughly 100 mmbbl prospect.

drilling result

Beach agrees to sell its 40% Tipton West coal seam gas interest to Arrow for up to A$400m: A$260m cash, A$70m Arrow shares, and up to A$70m contingent. Expected pre-tax profit about A$276m. Concludes the Surat sale process begun in February.

asset acquisition disposition

Beach clarifies its Cooper Basin contingent resource: best estimate 262 mmboe net (low 132, high 492), split into conventional 83 and unconventional 179. Converting all of it to reserves would more than double its 63 mmboe Cooper reserves. These are not booked reserves.

resource reserve update

Cooper Energy says Callawonga-5 and -6 cleaned up at a combined 6,600 bbl/d, lifting PEL 92 production to a record 6,100 bbl/d. Perlubie-1 flowed 2,600 bbl/d of clean oil and will be tied in during the June quarter. Beach holds 75%.

production update

With its half-year result, Beach says it has sought expressions of interest for a sale of part or all of its Tipton West coal seam gas and associated assets, after a strategic review. Further details are expected in coming months. Net profit rose 117% to A$127.5m.

asset acquisition disposition

ROC, on behalf of operator Anzon, says BW Offshore has sued the Basker-Manta-Gummy participants in the Federal Court for about US$90.1m of costs after the cancelled FPSO letter of intent. The participants dispute it and will defend. Beach holds 30%.

joint venture update

Independent assessment lifts Beach's Tipton West coal seam gas reserves at 31 December 2008: 3P up 34% to more than 1,115 PJ (192 mmboe), 2P 467 PJ (80 mmboe), 1P 111 PJ (19 mmboe). This updates the 2P of 443 PJ previously noted.

resource reserve update

Perlubie-1 (PEL 92, Beach 75%) found a 5 m gross oil column at the top of the Namur Sandstone, 2.5 km south of the Parsons field. It will be cased for completion as an oil well, completing the four-well program.

drilling result

Following Santos's year-end booking of 863 million boe of Cooper Basin contingent resource, Beach estimates its share at about 262 million boe. It has not yet seen the audit report; clarification is expected in late February. It is a contingent resource, not a reserve.

resource reserve update

Fermat-1 (VIC/P46, Beach 50%) reached 3,585 m and is being plugged and abandoned, finding no significant hydrocarbons. It resolves the ~1 TCF Otway target as a dry hole; Essential remains in default on cash calls. Spencer West-3 and Tennaperra-2 succeeded.

drilling result

BMG participants (Beach 30%) terminated the July 2008 letter of intent with BW Offshore for the Phase-2 FPSO after failing to agree a contract. BW may claim costs, capped at US$78.5m, which the participants dispute. This undercuts the new-FPSO plan for 2010; alternatives are under review.

material agreement termination

Fermat-1 (VIC/P46, Beach 50% operator) spudded 14 December, planned to 3,640 m, targeting a mean 1,153 BCF gas prospect (Essential's estimate). Essential's 25% share depends on a farm-out and fundraising.

drilling spud

PeeJay-1 (T/39P, Beach 50%) was plugged and abandoned at 2,183 m after finding no significant hydrocarbons, a dry hole against its 27 mmbbl mean pre-drill estimate. The rig moves to Spikey Beach-1. Canunda-1 will be cased; Callawonga-5 is delayed by wet weather.

drilling result

Beach announces a gas discovery at Canunda-1 (three Patchawarra gas sands, TD 2,799 m), to be cased and suspended; it follows Brownlow-1. PEL 92 oil exports reached over 5,000 bbl/d, and a new Parsons-Callawonga pipeline is commissioned. Output could reach up to 6,000 bbl/d.

drilling result

Egypt approves Beach's entry into North Shadwan (20% for US$110m, BP operator) and South East July (20%, via Santos farm-in). This completes the pending deals. North Shadwan first production is planned late 2009; South July-1 targets up to 100 million barrels, drilling December 2008.

asset acquisition disposition

Beach reports a gas discovery at Brownlow-1 (PEL 106, Beach 50% operator): a 7 m gas sand at 2,583-2,590 m, with up to 30 m gas column. It resolves the pending well, which is 2 km north of Middleton-1.

drilling result

Media release on record A$182.8m quarterly revenue. Tipton West 2P gas reserves at 30 June 2008 rose 382% to 1,107 PJ; Beach's 40% share is 443 PJ (76 mmboe) after an independent recertification by Netherland Sewell.

resource reserve update

The West Triton rig was damaged on 16 October during pre-load at PeeJay-1; damage is to leg bracing, with no injuries. Work on PeeJay-1 is halted and the drilling schedule awaits repair timing, a setback to the three-well offshore program.

drilling progress report

Beach launches its offshore campaign: three back-to-back wells with the West Triton rig, PeeJay-1 and Spikey Beach-1 (Bass Basin) then Fermat-1 (Otway, gas potential over 1 TCF), running to end of January. Also mentions joining a Burtocal appraisal well in Egypt.

drilling scheduled

Operator Anzon says Basker 6ST1 started 8 September at over 5,000 bopd, lifting BMG output (Beach 30%) from 9,500 to about 12,500 bopd, a 30%+ rise. The new FPSO is still planned for Q2 2010.

production update

Naccowlah West-22 (Beach 38.5%) succeeded with an oil show on test. Beach will start a three-well offshore program from late September/early October: PeeJay-1 (T/39P, 50%), Spikey Beach-1 (T/38P, 80%) and Fermat-1 (VIC/P46, 50%), about 3.5 months.

drilling scheduled

FY08 result: NPAT A$63.7m (down 39% from A$103.8m after A$50.4m hedge close-out); revenue a record A$685m. 2P reserves up 62% to 145.2 mmboe; cash A$376.5m, debt A$234.7m; final dividend 1.0c.

annual report

South Australia's revenue office finished its review of stamp duty on the 2004 Delhi purchase from Esso with no further action. This removes a noted A$75m contingent liability.

regulatory community update

Operator Anzon lifted BMG (Beach 30%) 2P reserves to 74.2 mmboe remaining, though original 2P is about 20% below the earlier 104 mmboe after Basker 6 appraisal. Larger FPSO due Q2 2010 to double oil to about 20,000 bopd.

resource reserve update

Beach's net Surat Basin coal seam gas 2P reserves rose more than sixfold, from 69 PJ (12 mmboe) in June 2007 to 443 PJ (76 mmboe) at 30 June 2008, per independent certification. Beach holds 40% of the Tipton West JV, operated by Arrow. This confirms the upgrade flagged in June.

resource reserve update

Operator Anzon announced letters of intent for a new Suezmax FPSO from BW Offshore and a drilling rig for the Basker-Manta-Gummy project (Beach 30%). The expansion targets about 20,000 bopd plus gas processing, with commissioning in Q2 2010 and spending of up to A$1,230m.

material agreement

Beach paid A$50m to close out a large part of its oil hedges from 30 June, leaving only 534 kbbl hedged, down from 1,566 kbbl at December. Up to 90% of oil sales are now exposed to spot prices for six months.

other

Preliminary FY08 Cooper/Eromanga oil production hit a record 2.0 mmb (+18%), and oil reserves rose 27% to above 15 mmb. Beach also says Arrow expects a substantial Tipton West 2P gas reserve increase in the September quarter.

production update

BP has waived its pre-emptive rights over Beach's US$110m purchase of 20% of North Shadwan. The deal still needs Egyptian government approval and an EGPC pre-emption waiver. Removes one hurdle noted in the 30 May announcement.

asset acquisition disposition

Beach completed its oversubscribed placement: 133,637,474 shares at A$1.43 raised A$191m. Eligible holders on the 16 June record date can buy up to A$5,000 of shares at the same price, and a 1-for-10 bonus option issue at A$2.00 follows.

capital raising announcement

Beach announced a roughly A$190m placement to fully fund its three Egyptian acquisitions, about A$150m including development costs, plus a share purchase plan (up to A$5,000 each) and a 1-for-10 bonus options issue at A$2.00. Other Middle East/North Africa deals are being evaluated.

capital raising announcement

Beach agreed to buy a 20% interest in the North Shadwan concession (Gulf of Suez) from Tri-Ocean for US$110m. It holds three undeveloped discoveries with about 40 million barrels of proved and probable reserves. Subject to pre-emption waivers and Egyptian approval, up to about six months.

asset acquisition disposition

Beach agreed with Santos Egypt to farm in for 20% of the South East July concession (Gulf of Suez), with a July South-1 well in Q4 2008. It will also buy Santos's 25% of onshore North Qarun. Both need Egyptian approvals; Beach's first Egypt entry.

farm in farm out agreement

Beach won exclusive rights, after a contested tender, to negotiate a production sharing agreement to explore the southern half of Lake Tanganyika, Tanzania (about 5,400 sq km). It is Beach's first Africa move; no work can start until terms are agreed.

regulatory community update

Basker 6 ST1's third and final test over zones 2 and 7 flowed a stable 4,800 bpd with zero water, bringing the three zones to nearly 13,000 bpd, far above what the JV expected. Anzon said this supported a south-eastern field extension, with the well to be connected in July 2008.

well test result

Beach completed the sale of 10% of the BMG joint venture to Sojitz, receiving A$123m on 24 April 2008. Beach retains 30%. Regulatory approval is still required. This is the second such A$123m sale, after Itochu's in October 2007.

asset acquisition disposition

Basker 6 ST1 found oil in five sands, one new to the field, and will be completed as a producer, reversing the dry first hole. The JV is connecting to the Crystal Ocean FPSO, with oil from mid July 2008. The field currently averages over 10,000 bopd.

drilling result

Parsons-2 (Beach 75%) found a 6.5 m gross oil column and will be completed as a producer, with first oil from May. This confirms the Parsons discovery of November 2007. Beach cites cooper-region finding costs around A$15/bbl and Cooper oil reserves near 15 mmb.

drilling result

The BMG joint venture settled its insurance claim for the July 2007 mooring failure at about A$66m, covering repair costs and a substantial part of lost revenue. About A$48m is received and A$18m is due in coming weeks. Beach's share is not stated in the text (it holds 40%).

material agreement

Half-year to 31 December 2007: net profit A$58.8m (up 148%) on revenue of A$340.0m. Underlying profit was A$25.2m after accounting adjustments. Interim dividend 0.75c. Beach estimates reserves of 94 mmboe, up from 89 mmboe at 30 June 2007.

half year report

Beach agrees to sell a further 10% of the Basker-Manta-Gummy project to Sojitz for A$123m, cutting its stake to 30%. Completion is expected mid April, subject to approvals and partner pre-emption rights. It repeats the 10% Itochu sale for A$123m.

asset acquisition disposition

Tipton West (Beach 40%) reserves upgraded: 1P to 167 PJ and 2P from 174 to 293 PJ, with Tarooms seams included for the first time. Beach's share of 2P rises from 11.8 to 20.2 mmboe, against total reserves of 89.6 mmboe at 30 June 2007.

resource reserve update

Beach agrees terms to farm into the Durresi Block, offshore Albania (4,200 sq km), for 25% with Island Oil & Gas operating 75%, with an option to reach 45%. Seismic in 2008, one well in 2009. Beach says deeper prospects could yield over 100 mmboe net. Subject to Albanian approval.

farm in farm out agreement

Ballaparudda-1 (PEL 91, Beach 40% operator) is plugged and abandoned, with no commercial oil found despite shows in the Murta and Birkhead. A dry hole against 1.4 mmbbl pre-drill estimate; Murrippi-1 is next in February.

drilling result

Parsons-1 (Beach 75%) flowed 3,362 bopd and is completed as a producer, with production expected in Q2 2008. Beach puts recoverable oil at 1.9 million barrels (best estimate). Ikarumba-1 and Wellington-6 were dry; Jackson-56 cased.

flow test result

Beach announces a new oil field at Parsons-1 (PEL 92, Beach 75%), with a 12 m gross oil column in the Namur Sandstone. Preliminary estimate is over 1 million barrels recoverable, near Callawonga and potentially tied into its pipeline.

drilling result

Anzon says Basker Manta output is restored to 12,600 bbl/d and rising, ending the four-month mooring outage. Insurance is said to have mitigated the repair and revenue impact. A cargo of over 300,000 bbl is due to be sold at month end. Beach holds 40%.

production update

Anzon, as operator, says the Basker Manta mooring is repaired and oil is flowing directly from the FPSO. This ends a four-month curtailment since the 5 July failure, during which output averaged about 3,100 bopd. Full rates are being re-established. Beach holds 40%.

production update

Beach farms into four onshore Ebro Basin tenements in Spain, taking 25% (Serica 75%) by funding part of a 330 km 2D seismic program. It is Beach's first European entry. Beach estimates more than 250 BCF net potential, with drilling possible in 2008/9.

farm in farm out agreement

Kopuwai-1 (Beach 20%, AWE operator) reached 4,052 m and found an oil column in apparently poor-quality reservoir, likely non-commercial. It will be plugged and abandoned, a disappointing result for the new New Zealand exploration farm-in.

drilling result

Beach received A$123m cash from ITOCHU for 10% of Basker-Manta-Gummy, completing the sale announced in August. Beach's interest falls from 50% to 40%, effective 1 June 2007. Basker-6 is planned for early 2008.

asset acquisition disposition

Callawonga-3 (Beach 75%) found a 5 m oil column in the Namur and flowed about 5,660 bopd on clean-up with no water, beating Callawonga-2's 4,992 bopd. Kopuwai-1 in New Zealand (Beach 20%) spudded 29 September.

well test result

Callawonga-2 (Beach 75% operator) flowed about 4,992 barrels of oil a day, with negligible water. It will be tied in and add to Callawonga production from October, confirming the field discovered in July 2006.

well test result

Preliminary final report for FY07: net profit A$103.3m (up from A$44.0m) on total revenue A$566.8m; oil and gas sales A$472m. Final dividend 1.0c, full-year 1.75c. 2P reserves 89.6 mmboe, up from 36.2. Debt A$296m, cash A$74.7m.

annual report

Beach announces three offshore farm-ins: 20% of NZ's PEP 38482 (Kopuwai-1, Sept/Oct 2007), 80% of part of T/38P and 50% of T/39P in the Bass Basin (wells second half 2008). It says each could yield over 20 mmb net, with Beach operating the Bass Basin wells.

farm in farm out agreement

AWE confirms Beach will earn 20% of New Zealand permit PEP 38482 by funding part of the Kopuwai-1 well, expected September-October 2007. The prospect is said to hold potential for over 100 million barrels of recoverable oil. Subject to government approval.

farm in farm out agreement

Beach sells 10% of the Basker-Manta-Gummy project to Japan's ITOCHU for A$123m cash, valuing it at A$1.23bn. Beach drops from 50% to 40%, with Anzon also 40% and ITOCHU 20%. Subject to Designated Authority approval; effective 1 June 2007.

farm in farm out agreement

The Basker-Manta-Gummy JV (Beach 50%) was awarded production licences VIC/L27 and VIC/L28, converting former retention leases. They cover gas resources, so this is a step toward the gas development deferred earlier, though no gas contract or final investment decision is announced.

regulatory community update

June quarter: sales 2.54 mmboe, revenue A$125.3m; FY07 revenue A$472.2m, up from A$124m. 2P reserves were reassessed at 93.4 mmboe at 30 June 2007, down from 101 mmboe a year earlier, though Cooper oil reserves rose 1.0 mmb to 12.3 mmb.

quarterly activities report

Beach confirms Hurricane-2 (10%) found about 9 m net oil pay, an 18 m gross column, too small to develop now, and will be plugged and abandoned. Warragon-1's Toolachee test misran and it will be cased for testing. Beach declined to join Naccowlah West-20.

drilling result

The Basker-Manta JV (Beach 50%) contracted the Havila Harmony vessel to repair the mooring, mobilising mid-September, with full production back late September/early October. It also secured the Kan Tan IV rig for 135 days from mid-2008, in addition to Basker-6 in Q1 2008.

contract award

Hurricane-2 (Beach 10%) found about 20 m gross oil column (about 10 m net pay, 30 API) and is classed a new field discovery. Mosaic's MD says it is unlikely to be commercial stand-alone now. Falls well short of the 16-40 MMB hoped for.

drilling result

The Basker-Manta mooring failure was a dislodged shackle pin; the mooring is otherwise sound. A specialist vessel is expected in late August. Meanwhile ship-to-ship shuttling should hold about 3,000 bopd, well below full capacity. Follows the 5 July mooring failure.

production update

Basker-Manta (Beach 50%) vessels reconnected 5 July, but the Basker Spirit's single point mooring parted that evening and the tanker drifted. No injuries or spill. Production is expected to be curtailed for weeks; business interruption insurance is available.

production update

Beach announces Marcoola-1 (ATP 269P, Beach 46.95% operator) as a new field oil discovery. A Hutton test recovered 6 barrels of oil with no water before the packers failed. It is a first success after the dry Nudgee-1, but flow rates are not yet known.

drilling result

The Basker-Manta-Gummy JV (Beach 50%) deferred the gas-phase investment decision, so the 15-year Alinta gas sales agreement of 16 March lapses. Oil expansion continues, with Basker-6 scheduled for Q1 2008. A gas commitment is expected within 12 months. This reverses the Q2 2007 gas plan.

material agreement termination

Beach reports Hurricane-2 spudded 24 June in WA-208-P, offshore Carnarvon Basin, testing for an oil leg beneath the Hurricane-1 gas discovery of 2005. Beach holds 10%. The mean prospect is 16 million barrels gross, with a 40 million barrel high side. Drilling is expected to take about 15 days.

drilling spud

Beach's two Bodalla South appraisal wells (100%) flowed oil: Bodalla South-17 at 4,617 bopd and -16 at 230 bopd on clean-up. They add an estimated 250,000 barrels of reserves, and production is expected within a month.

drilling result

Beach refinanced the A$650m Commonwealth Bank bridge loan used for the Delhi purchase with a A$300m three-year syndicated term facility plus a A$25m working capital facility. It states debt is now A$300m versus A$650m at acquisition.

debt financing

Strike Oil reports Kewarra-1, Beach's first well in ATP633P (Beach 85%), reached 1,630 m and found only a small Hutton oil accumulation judged uneconomic. A disappointing result for the new permit.

drilling result

Arrow, operator of Tipton West (Beach 40%), signed a conditional deal lifting firm gas supply to Braemar Power Partners from 6 to 10 PJ a year for 15 years (150 PJ total). It replaces the Ergon gas contract (58.5 PJ), which will not proceed.

material agreement

Beach announces at least 24 wells in the Naccowlah Block this quarter under the Cooper Oil Program, costing Beach A$21m and possibly adding 1,000 bopd net. Kewarra-1, its first well in ATP633P (Strike Oil 15%), spuds late March. Extends the Cooper oil push.

drilling scheduled

Beach and Anzon signed a 15-year gas sales agreement with Alinta for 225 PJ from Basker-Manta-Gummy, starting 2009. It is conditional on a final investment decision. This resolves the pending gas contract, with gas wells planned for 2008.

material agreement

Telowie-1 (Beach operator, 50%) was plugged and abandoned at 1,384 m. The Murta test recovered only 0.5 litres of oil, not commercial. Another dry PEL 94 hole after Tunkalilla-1. Focus shifts to the Dunoon Horst.

drilling result

Beach's half-year report to December 2006 shows revenue up 251% to A$247m but profit after tax down 35% to A$20.3m, reflecting Delhi acquisition and financing costs. Interim dividend is 0.75 cents. Reserves are 101 mmboe, with Basker-Manta oil 2P up 168% to 39.2 mmbbl.

half year report

Tunkalilla-1 (Beach operator, 50%) reached 1,422 m with no hydrocarbon shows and will be plugged and abandoned. Another dry Cooper exploration hole. The rig moves to Telowie-1.

drilling result

Arrow, operator of Tipton West, reports first gas sold on 6 February, almost two months ahead of the 31 March contract deadline. Beach holds 40%. Sales are intermittent during commissioning and ramp to 16 TJ/day by 1 October 2007.

production update

Beach farms into Petratherm's Paralana geothermal project in South Australia, earning 21% for A$10m across two wells, with an option for a further 15% for A$20m. Beach can withdraw after the first well. First geothermal move for the company.

farm in farm out agreement

Appadare-1 is being plugged and abandoned after only minor gas shows in the Patchawarra that looked water-wet. It is the fourth dry hole in the five-well PEL 107 program. Rawson may take up to two more wells in the block.

drilling result

Anzon said Basker Manta commissioning was completed, with all four oil wells tested and about 220,000 barrels produced since 17 December. Peak steady output was 16,000 bopd, below the over 20,000 bopd the wells can deliver, because heat hampered gas cooling. Beach holds 50%.

production update

Beach reports two new Cooper Basin oil discoveries: Itchy-1 (20.21%) flowed 2,174 bopd and Ramses-2 (28.8%) 588 bopd. The nine-well Yanda oil program should lift output to about 500 bopd gross by April. Beach expects up to 130 Cooper Oil wells in 2007.

drilling result

Beach granted Claymore Capital a call option over its 29 million Great Artesian shares at 51 cents, exercisable by 12 February 2007, and sold its ~6.3 million Anzon shares at A$1.61 to Anzon Energy. Both reduce Beach's strategic holdings.

asset acquisition disposition

Cabbots-1 (Beach operator 40%) reached 2,421 m; logs showed no commercial hydrocarbons and it is being plugged and abandoned. It is the third dry hole in PEL 107 after Keeley-1 and Talia-1; Appadare-1 is now expected early January.

drilling result

About 40 million Beach shares (about A$55.6m at A$1.39) will be issued 21 December to FIELDS holders who redeemed. This is far below the up-to-90.6m maximum. Shares on issue rise to about 883m; only 4.5% of FIELDS remain.

capital raising announcement

First production from Basker-Manta began 17 December, with Manta 2A oil reaching the Crystal Ocean FPSO; the other oil producers start this week. The A$330m project is 50% Beach. Ends the build phase; full rates not yet announced.

production update

Talia-1 reached 1,854 m with no significant hydrocarbon shows and will be plugged and abandoned. Beach operates with 40%. It is the second dry hole in the PEL 107 program after Keeley-1.

drilling result

Rising Fast 1 (Beach 33.3%) is being abandoned after tests flowed water: McKinlay 1,056 bwpd and Murta 42 bbls. Stuart sees residual oil only. The earlier oil shows did not lead to a discovery. Rig moves to Dunoon 2.

drilling result

Callawonga-1 began oil production on 18 November, flowing about 2,100 bopd. The discovery of July 2006 is now producing, as flagged for 4Q2006. Beach (75%) puts P50 reserves at 1.5 million barrels gross, 1.1 million net.

production update

Keeley-1 will be plugged and abandoned on Beach's recommendation after logs and side-wall cores. It was a dud for the 40% operator against a roughly 10 Bcf mean prospect. The rig moves to Talia-1, an oil prospect, starting late this week.

drilling result

Beach books gross proved and probable sales gas reserves of 6.3 PJ at Middleton and 3.4 PJ at Udacha, from extended testing. Development needs gas sales or access deals. A 180 sq km 3D seismic survey is planned for early 2007.

resource reserve update

Beach clarifies in response to shareholder enquiries that proved and probable reserves at 1 July 2006 were 101.0 mmboe (Cooper/Eromanga 69.8, Gippsland 19.6, Surat 11.7). A further 36 mmboe Basker-Manta-Gummy contingent resource needs a gas contract and development approval.

resource reserve update

Cutter-1 reached target depth: the main Shag Point sands were water wet, with gas shows in shallower rocks. A disappointment against the earlier 70-80 mmbbl potential; Tap sees implications for the nearby Barque prospect. Beach holds 20%.

drilling result

Beach's 2-for-7 rights issue (about A$247m, A$1.39 per share) left a shortfall of 50,069,714 shares, with about 72% of rights taken up. The underwriters cover the shortfall. This completes the funding for the Delhi acquisition debt paydown.

capital raising announcement

Byrock-2 (Beach 46.95% operator) flowed 10 barrels of oil with no water from the Toolachee Formation, confirming an oil discovery. Byrock-1 found oil in the same formation in 1986. The well will be cased as a future producer.

drilling result

Tipton West JV (Arrow 60%, Beach 40%) signs a processing agreement with APA for a A$31m gas plant, initially 10 PJ a year to Braemar Power Station. Completes first-stage funding; conditional on subsidiary agreements. Advances Tipton West, where first gas was due Q1 2007.

material agreement

Beach lodges a prospectus offering eligible FIELDS holders up to 90.6m new shares at A$1.39, raising up to A$126m, closing 11 December. Subject to shareholder approval at the 23 November AGM. Follows the Delhi acquisition funding arrangements.

capital raising announcement

Kiana-2's third test recovered only muddy water and no hydrocarbons, so the Kiana oil field does not extend west of a fault. The well will be abandoned and the rig moves to Keeley-1. Reserves tied to Kiana-1 are said not to be materially downgraded.

drilling result

Beach says 97% of its last 50.6 million options were exercised, adding A$49m of working capital. Shares on issue are now about 664 million. The A$247m rights issue at A$1.39 for the Delhi acquisition is still to come.

capital raising announcement

Beach confirms Cutter-1, a high-risk offshore well in New Zealand's Canterbury Basin, spudded 9 October. It targets ~70-80 million barrels of oil at about 3,000 m, with Beach holding 20%, a first result due in about 30 days.

drilling spud

Beach lodged the prospectus for its 2-for-7 renounceable rights issue at A$1.39, raising about A$247m from ~178m new shares, underwritten by Euroz and CommSec. Closes 31 Oct; proceeds repay part of the debt used for the Delhi acquisition.

capital raising announcement

Anzon reports the Basker manifold installed, but the FPSO Crystal Ocean is still in Singapore. It is now expected back in the first week of November, with full 25,000 bopd production later that month. This pushes back the mid-October start previously expected.

production update

Somerton-1 reached 1,835 m with no shows in the Birkhead, Hutton or Poolowanna, and logs show all objectives water-bearing. It will be plugged and abandoned. A second dry hole in PEL 92 after Snowden-1 (Beach 75%, Cooper 25%).

drilling result

Beach reports FY2006 pre-tax profit more than doubled to A$59.46m and net profit A$43.99m, with oil and gas sales A$123.99m. Final dividend 1.0 cent, full-year 1.5 cents. Management expects Delhi to lift reserves from 36 to over 95 mmboe, and full Basker/Manta production next month.

half year report

Preliminary FY2006 report: net profit A$43.99m (up 161%), revenue A$158.4m, record production 1.37 mmboe, and proved and probable reserves 36.2 mmboe. Final dividend 1.0 cent. Confirms the headline results, and notes the Delhi acquisition as a subsequent event.

annual report

Beach placed about 81 million shares at A$1.39 to raise A$112.7m from Euroz clients, to pay down the Delhi acquisition debt and fund FIELDS note redemptions. This is the placement part of the funding, alongside the A$247m underwritten 2-for-7 rights issue.

capital raising announcement

Snowden-1 in PEL 92 reached 1,906 m and recorded no significant hydrocarbon shows in the Birkhead, Hutton or Poolowanna objectives. It was being plugged and abandoned, and the rig was to move to Somerton-1 (Beach 75%, Cooper 25%).

drilling result

Beach spudded Glenaire-1 on 8 September, a gas exploration well in the onshore Otway Basin, Victoria (PEP 160). Beach operates with 50%, Santos 30%, Origin 20%. Planned depth is 3,945 m, taking about 63 days, with mean potential of 68 BCF.

drilling spud

Beach buys the Delhi Petroleum group, giving an average 21% interest in over 200 Cooper/Eromanga fields, for A$44m plus about A$230m of assumed senior debt. Reserves are expected to rise from 36 to over 95 mmboe. Funding is a A$650m bridge, a A$113m placement at A$1.39 and a 2-for-7 rights issue at A$1.39 raising about A$247m.

asset acquisition disposition