27 Apr 2012drilling result▼ Bad
Senex reports Tigercat-2 (PEL 104, Beach 40%) found only 1.6m of net oil pay, tested no oil, and will be plugged and abandoned. It is another dry result after the Growler successes. The rig moves to Snatcher.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
26 Apr 2012capital raising announcement● NeutralMajor
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.
What it means for a shareholder
48.7m new shares at about A$1.62 to raise about A$78.7m. That's 3.7% dilution: every existing holder's slice gets 3.7% smaller. If you held A$1,000 of shares (619 at the issue price), your slice goes from 0.0000493% to 0.0000474% of the company. To keep it you'd need 24 more shares - about A$39 at the issue price.
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24 Apr 2012drilling result▲ GoodMajor
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.
20 Apr 2012business combination● NeutralMajor
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.
20 Apr 2012other● Neutral
Icon Energy announces a five-well drilling plan. For Beach, it repeats that the first ATP 855P well (Halifax-1) on Rig 965 is expected in Q3 2012. Icon says Beach is farming in to earn 40%, on top of its 20%.
18 Apr 2012drilling spud● Neutral
Southend-1 spudded on 17 April in PEL 107 (Beach 40% operator, Drillsearch 60%), the fifth and final well of the western wet gas campaign. It targets the Patchawarra Formation to 2,912m, with a high-case prospective 20.79 BCF.
17 Apr 2012drilling result▲ Good
Strike reports preliminary Marsden 1 results (PEL 95, Beach 50%): 804m of Permian section with 43m net coal, and heavy hydrocarbons in mud logs. The well will be cased and suspended for later testing, and Davenport 1 is next. It is early, operator-reported data.
17 Apr 2012investor presentation● Neutral
Beach COO presentation at a Morgan Stanley shale forum, repeating known facts: 77 MMboe 2P, 660 MMboe including contingent resources, 2 Tcf booked in PEL 218. It adds Moonta-1 mud logs showing gas saturation and Streaky-1 next. No new announcement.
17 Apr 2012drilling spud● Neutral
Senex spudded the Tigercat-2 oil exploration well on 13 April in PEL 104 (Beach 40%), targeting 1,850m. It is the fourth of six planned oil exploration wells in the expanded 14-well campaign.
17 Apr 2012regulatory community update▼ Bad
Icon Energy says Beach has delayed delivery of Ensign Rig 965 to Q3 2012, so the first ATP 855P shale well will not spud this financial year. This pushes back the horizontal pilot previously expected by end H1 2012. Beach funds most of Icon's share of costs.
11 Apr 2012drilling progress report● Neutral
Strike reports Marsden 1 (PEL 95, Beach 50%) reached total depth at 2,625m. Logging starts shortly and results will follow. Continues the earlier coring preparation update.
11 Apr 2012drilling result▲ Good
Senex, operator with 60%, reports Growler-10 hit a 15.2m gross oil column and was cased as a future producer, its eleventh straight Growler success. Beach holds 40%. The rig moves to Tigercat-2, then Snatcher-4.
10 Apr 2012drilling result▲ GoodMajor
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.
5 Apr 2012resource reserve update▲ Good
Beach says that if it endorses the Senex Growler upgrade at year end, its net Growler reserves would rise by 1.3 MMbbl, against 0.9 MMbbl booked so far. It has not yet reviewed the operator's data. An independent review of all its reserves continues.
5 Apr 2012capital raising announcement▲ Good
Beach confirms it has received net A$260m from the institutional entitlement offer (A$114m) and the 3.95% convertible notes (A$146m). Retail offer is now put at about A$81m, closing 20 April. Funds go to Cooper Basin, Egypt and Tanzania spending over 2-3 years.
4 Apr 2012capital raising announcement● Neutral
Retail offer booklet: eligible holders can buy 1 new share per 8 held at $1.40, closing 20 April 2012, to raise about $78m. Entitlements cannot be traded and lapse if unused. Repeats terms already announced, including the $150m notes at 3.95%.
4 Apr 2012capital raising announcement● Neutral
Letter telling shareholders outside Australia and New Zealand, and other ineligible holders, that they cannot join the retail entitlement offer. Notes the institutional part raised about $117m and retail about $78m. Administrative notice.
4 Apr 2012drilling progress report● Neutral
March report: Salwa-1 and Hawalli-1 in Egypt were plugged and abandoned with no significant hydrocarbons, ending the six-well campaign. Haslam-1 reached 2,913m. Encounter-1 fracture stimulation moves to late April. Moonta-1 needed a sidetrack. Bullamakanka-1 was dry.
4 Apr 2012resource reserve update▲ Good
Senex, Beach's 60% partner and operator, reports certified reserves at Growler up 90% (2P) after the drilling success. Senex's net 2P rose 27% to 8.1 MMbbl. This is the operator's figure, not Beach's own booking.
30 Mar 2012joint venture update▲ Good
Senex and Beach add three appraisal wells (Growler-10, Snatcher-4 and -5) to take the campaign to 14 wells. Growler-10 spudded 27 March. Snatcher oil field, offline since the January 2010 flood, is due to restart production in April. Beach holds 40%.
29 Mar 2012capital raising announcement▲ GoodMajor
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.
27 Mar 2012capital raising announcement● Neutral
Preliminary offering circular for Beach's convertible notes, sold outside the United States via Citi, Goldman Sachs and Macquarie. Coupon, size and conversion price are still blank; Beach's last close was A$1.575. Final terms follow on pricing.
27 Mar 2012investor presentation● Neutral
Investor presentation supporting the A$345m entitlement offer and convertible note raise announced the same day. Presentation text is mostly legal notices in the extract; the raise terms are covered in the main announcement.
27 Mar 2012capital raising announcement● NeutralMajor
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.
27 Mar 2012capital raising announcement● Neutral
ASX circular restating the timetable for Beach's fully underwritten 1-for-8 entitlement offer at $1.40 (about $195m) and the planned $150m convertible notes. Retail offer closes 20 April 2012. Administrative notice, nothing new.
27 Mar 2012drilling result▼ BadMajor
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.
23 Mar 2012dividend declaration▲ Good
Beach paid its interim dividend of 0.75 cents per share, fully franked, on 23 March 2012. The dividend reinvestment plan issue price was $1.430 after a 5% discount. The dividend was not underwritten. Confirms the dividend flagged with the half-year result.
21 Mar 2012drilling spud● Neutral
Haslam-1, the fourth well of the PEL 106B wet gas program (Beach 50% operator), spudded 20 March, targeting the Patchawarra to 2,828m. High-case prospective recoverable gas is 19.6 BCF. It follows the Coolawang-1 discovery and will core up to 30m.
13 Mar 2012production update▲ GoodMajor
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.
7 Mar 2012drilling progress report● Neutral
February report: Encounter-1 fracture stimulation (PEL 218) slips again, to early April. Moonta-1 at 2,924m, waiting on weather. Coolangatta-2 (ATP 633P) was dry. Spitfire-1 plugged as sub-commercial. Growler-8 cased as producer. Salwa-1 and Hawalli-1 reached total depth.