22 Feb 2018listing compliance notice▲ Good
With Joycelyn Morton chairing it, Beach's Audit Committee now complies with Listing Rule 12.7, ahead of the ASX grace deadline of 23 February 2018. This resolves the December non-compliance.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
19 Feb 2018half year report● Neutral
First-half FY18 profit was $95.7m, down 7%, and underlying profit was $93.1m, up 5%, on revenue up 14% to $392.6m. Cash stood at $552.2m at 31 December, before Lattice, which is not consolidated. A 1 cent interim dividend was declared.
19 Feb 2018investor presentation● Neutral
Half-year results presentation led by the new executive team, covering the Lattice deal, Cooper Basin operations and the outlook. It repeats the results and guidance already released; no new figures could be confirmed from the text provided.
13 Feb 2018other● Neutral
Beach announces that its half-year results will be released on 19 February 2018, followed by a conference call. Administrative notice only.
7 Feb 2018drilling progress report▲ Good
January report: Stunsail-4 and -5 found oil in the Western Flank development, Kalladeina-3 found 2.5 m of net pay, and Gooranie and Casimir-1 results were positive. Lattice-era Queensland and Cooper interests now appear. The Tintaburra appraisal is complete and the Haselgrove-3 ST1 gas discovery is restated.
31 Jan 2018director officer appointment● NeutralMajor
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.
31 Jan 2018asset acquisition disposition● Neutral
Origin confirms completion of the $1,585m sale of Lattice Energy to Beach, effective from 1 July 2017. Origin will use proceeds to close out $266m of oil forward sales and pay down about $1bn of debt. It expects $220-240m of accounting charges.
31 Jan 2018asset acquisition disposition▲ GoodMajor
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.
31 Jan 2018production update▲ GoodMajor
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.
22 Jan 2018auditor change● Neutral
Ernst & Young is appointed Beach's auditor after a tender process and the resignation of KPMG. No reason for the resignation is given in the notice.
11 Jan 2018flow test result▲ GoodMajor
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.
10 Jan 2018drilling progress report▲ Good
December report: Largs-1 DW1 is a new gas discovery, completing the first phase of Western Flank gas drilling with four successes from six wells; Squeaky-1 was plugged and abandoned. McKinlay oil campaign finished 6 for 6. Haselgrove-3 ST1 is being prepared for flow testing.
9 Jan 2018security holder rights change● Neutral
About 1.5m executive incentive rights lapsed unexercised under their terms. Issued capital is now 2,276,155,671 ordinary shares (up from ~1.87bn after the entitlement offer) plus a small number of unlisted rights. Administrative.
21 Dec 2017asset acquisition disposition▲ GoodMajor
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.
19 Dec 2017asset acquisition disposition● Neutral
Origin confirms all conditions for the sale of Lattice Energy to Beach are satisfied, with completion planned for 31 January 2018. Origin keeps recognising Lattice earnings until then. Mirrors Beach's own announcement.
19 Dec 2017asset acquisition disposition▲ GoodMajor
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.
19 Dec 2017drilling scheduled▲ Good
Beach is awarded a $6.89m South Australian PACE grant, about half the cost, to drill Dombey-1 in PEL 494 (Beach 70%, Cooper Energy 30%), targeting a 35 Bcf prospect with ~20% chance of success. Drilling is expected in FY19; the grant still needs formal documentation.
13 Dec 2017farm in farm out agreement● Neutral
Cue says BP's option over 42.5% of WA-359-P is extended to 25 April 2018. This is one of the conditions for Beach's 21% farm-in to the Ironbark prospect, so it keeps that deal alive. Cue plans to seek a permit extension.
8 Dec 2017listing compliance notice▼ Bad
After Fiona Bennett's retirement, Beach's Audit Committee no longer meets ASX Listing Rule 12.7. ASX granted a grace period to 23 February 2018 to fix it; a director recruitment is underway, consistent with the plan to add two female directors.
6 Dec 2017drilling progress report▲ Good
November report: Naiko-1 (Beach 100%) found 2 m of net gas pay and flowed up to 5.8 MMscfd, possibly connected to Middleton and likely to add reserves. McKinlay oil campaign began with early success; Haselgrove-3 ST1 reached total depth. Namur and Odonata wells cased as producers.
5 Dec 2017material agreement● Neutral
Adelaide Brighton confirms it has signed a gas supply agreement with Beach for its South Australian operations, alongside an electricity deal with Infigen. Counterparty's confirmation of the Beach gas sales agreement already announced; no new terms.
5 Dec 2017material agreement▲ Good
Beach signs new gas sales deals with Adelaide Brighton and Alinta for up to 4 PJ over 12 months from 1 January 2018. Naiko-1 is the third discovery from the first four Western Flank wells; the ~$5m Middleton expansion from 25 to 40 MMscf/d targets completion by end FY18.
29 Nov 2017farm in farm out agreement● Neutral
Cue Energy's release on its deal with Beach: Beach to take 21% of WA-359-P (Carnarvon Basin) for $900,000 past costs plus a 4% carry on the Ironbark-1 well, and an option over 7.5% of WA-409-P. Conditional on BP exercising its option and a permit extension.
29 Nov 2017farm in farm out agreement▲ GoodMajor
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.
23 Nov 2017investor presentation● Neutral
AGM address: chair notes Fiona Bennett's retirement and plans to appoint two female directors, taking the board to nine. Recaps FY17: underlying profit up 353% to $162m, cash up 75% to $348m. Text is truncated; no new operating news.
7 Nov 2017director officer appointment● Neutral
Independent director Fiona Bennett, on the board since 2012 and chair of the Risk and Audit committees, will retire at the 23 November AGM. Her re-election resolution is withdrawn. A successor has not been named in this notice.
6 Nov 2017asset acquisition disposition● Neutral
Key Petroleum says the transfer of Cooper Basin permits ATP 783, 920 and 924 from Beach has been finalised. This completes the sale of these Queensland permits, which Beach had pending.
1 Nov 2017drilling result▲ GoodMajor
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.
20 Oct 2017other● Neutral
Beach's 2017 corporate governance statement, approved by the board on 22 September 2017. The board states it complied with the ASX governance principles. Routine compliance document with no new corporate events.
20 Oct 2017other● Neutral
Beach's 2017 sustainability report, covering safety, environment and community performance for FY17. It contains no new financial or operating results affecting the Lattice deal or reserves.