18 Nov 2014admin correction● Neutral
Corrected version of the AGM webcast notice: the recording will be available from 28 November rather than 2 December 2014. Administrative only.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
18 Nov 2014agm notice● Neutral
Beach answers shareholder questions on two AGM resolutions: post-retirement pro-rata payments to retiring MD Reg Nelson (869,781 rights at 85%, 972,292 rights at 50%, cash if performance tests are met), and raising the non-executive director fee pool from $900,000 to $1.3m.
14 Nov 2014material agreement termination▼ Bad
Petratherm says the $13m ERP grant and the $24.5m REDP grant for Paralana geothermal have been terminated, with no funds paid, after it could not raise the extra $5m equity. Beach (21% partner) has no further obligations beyond a closure report. Beach already wrote off its Paralana investment.
13 Nov 2014well test result● Neutral
Icon says Redland-1 stimulation in ATP 855 (Beach 46.9% operator) is done, and Geoffrey-1 stimulation began 12 November. Stimulated wells are awaiting stabilised flow rates; none reported yet from Hervey-1 or Etty-1.
13 Nov 2014regulatory community update● Neutral
3D Oil (80% operator) says the Flanagan 3D seismic survey is under way in T/49P, with Beach holding 20%. About 970 sq km, due to finish mid-December. Leads are said to hold 7.8 Tcf gas in place (best estimate, prospective). Follows the late-2014 seismic plan.
11 Nov 2014drilling result▲ Good
Bauer-15 in PEL 91 (Beach 40% operator, Drillsearch 60%) found 5.1m net Namur oil pay against 3.5m predicted, and was cased as a producer. It may lift the field's ultimate recovery; four more Bauer wells are drilling. Beach calls it an upside, with no reserve figure yet.
6 Nov 2014drilling progress report● Neutral
Drillsearch's October report confirms Bauer-14 cased as a future producer and Pennington-3 plugged and abandoned for insufficient pay. Bauer-15 and -16 are drilling in PEL 91 (Beach 40% operator). Canunda-2 cased as a future producer. Pennington-3 resolves the earlier open drilling thread.
5 Nov 2014drilling progress report● Neutral
October report: 13 wells completed at a 92% success rate. Bauer-14 oil development well (Beach 40% operator) was cased for tie-in in December; Pennington-3 was plugged and abandoned, and Canunda-2 gas well was cased as a future producer. Ten Santos-operated gas wells cased.
29 Oct 2014well test result● Neutral
Icon says stimulation of Etty-1 in ATP 855 (Beach 46.9% operator) is complete and flow testing will follow in coming weeks. Equipment moved to Redland-1, where stimulation began 28 October. Still no flow rates from the Nappamerri Trough gas wells.
28 Oct 2014quarterly activities report● Neutral
September quarter: production 2.4 MMboe, sales 2.9 MMboe (six-year high), revenue $232.9m (down 12% on lower oil price). Cash fell to $343m after the dividend; $300m facility undrawn. FY15 capex guidance of $450-500m unchanged. Hervey-1 and Etty-1 stimulation completed.
24 Oct 2014annual report● Neutral
Beach's 2014 Annual Report restates FY14 results already released, including sales revenue of $1,052m. It sets the AGM for 27 November 2014. No new information in the visible text.
14 Oct 2014investor presentation● Neutral
Citi conference presentation repeats known FY14 results, FY15 guidance and the international asset review. It states market cap of about A$1.7bn at 13 October 2014 (against ~A$2.2bn in August) and says the balance sheet could fund capex until end FY16.
13 Oct 2014well test result● Neutral
Icon reports the ATP 855 joint venture (Beach 46.9% operator) finished fracture stimulation of Hervey-1, with flow testing to follow over coming weeks. Stimulation of Etty-1 began 11 October. No flow rates yet.
1 Oct 2014drilling progress report▼ Bad
Drillsearch's September report: PEL 91 (Beach 40% operator) appraisal Stunsail-2 and gas exploration well Karrata-1 were plugged and abandoned. Pennington-3 is drilling. Mixed month for the Western Flank, with two dry holes after the Balgowan and Burners discoveries.
1 Oct 2014drilling progress report▲ Good
September report: Egypt's El Salmiya-6 flowed 2,880 bopd and 9.7 MMscfd of gas, and ASA-1X ST3 flowed 2,130 bopd from one zone and 1,332 bopd from another (Beach 22%). Martlet-1 was cased. Stunsail-2 and Karrata-1 were plugged and abandoned.
17 Sept 2014dividend declaration● Neutral
Beach sets the DRP issue price for the 2.0 cent final dividend at $1.482, after a 2.5% discount. Record date 5 September, payment 26 September. Administrative follow-up to the earlier dividend notice.
16 Sept 2014well test result● Neutral
Icon says the ATP 855 JV (Beach 46.9% operator) has started fracture stimulation of Hervey-1, five Upper Patchawarra zones. The four-well program, including Geoffrey-1, Redland-1 and Etty-1, is expected to take about six weeks. Starts the delayed NTNG flow testing; no results yet.
12 Sept 2014drilling result▲ Good
Senex reports an oil discovery at Martlet-1 in PEL 104 (Senex 60% operator, Beach 40%), with up to 6m net pay, to be cased and put on production next quarter. Its Squire-1 well, outside Beach's interest, was dry.
12 Sept 2014drilling result▲ GoodMajor
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.
11 Sept 2014security holder rights change● Neutral
Beach's A$150m 3.95% convertible notes due 2017 had their conversion price adjusted from A$1.910 to A$1.88 from 3 September 2014, following the dividend. A mechanical adjustment.
4 Sept 2014drilling progress report▲ Good
Drillsearch's August report says Burners-1 in PEL 91 (Beach 40% operator) is the 15th discovery there, cased as a future producer. Stunsail-2 appraisal is next, and 18 wells are planned in PEL 91 this financial year.
3 Sept 2014drilling progress report● Neutral
August report: Cullen-1 in the Bonaparte was cased and suspended at 3,325m after about 1,600m of gas-prospective shale, for later testing. Balgowan-1 was cased, and Burners-1 found oil, recovering 5.1 barrels in a test. Small result, not commercial yet.
3 Sept 2014drilling result▼ Bad
Senex reports Warthog-1 in PEL 111 (Senex 60% operator, Beach 40%) found good sands but no oil or gas shows and was plugged and abandoned at 1,887m. Another dry hole in this joint venture after Tornado-1, Sabre-1 and Mustang-3.
28 Aug 2014investor presentation● Neutral
Roadshow presentation repeats the FY14 results: $411m cash, $1.05bn revenue, FY15 production guidance of 8.6-9.4 MMboe, and the review of international assets. No new information.
27 Aug 2014resource reserve update● Neutral
Drillsearch, Beach's 60% partner in PEL 91, reports 2P reserves steady at 28.3 MMboe. Its Western Flank oil reserves rose to 7.8 MMboe, excluding the Balgowan-1 discovery. Mostly its own figures; it supports confidence in the PEL 91 oil fairway Beach operates.
25 Aug 2014dividend declaration● Neutral
Beach details its 2.0 cent fully franked final dividend: record date 5 September, payment 26 September, dividend reinvestment plan (DRP) discount 2.5%. It corrects the last DRP election date to 8 September, not 5 September as in the full-year report.
25 Aug 2014investor presentation● NeutralMajor
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.
25 Aug 2014resource reserve update● NeutralMajor
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.
25 Aug 2014annual report▲ GoodMajor
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.
22 Aug 2014financial restatement▼ BadMajor
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.