4 Jan 2012business combination● Neutral
Beach lodged the compulsory acquisition notice for Adelaide Energy with ASIC on 4 January 2012 and is sending it to holders who did not accept the offer. A procedural step following the 96.99% outcome.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
4 Jan 2012drilling result▲ Good
Growler-11 found a 10.1m gross oil column and was cased as a producer, confirming the eastern limit of the Growler field (Beach 40%). Online expected January 2012. Rig moves to Growler-7.
3 Jan 2012drilling result▼ Bad
Baird-1 in PEL 106B (Beach 50% operator) missed its conventional wet gas target and a drill stem test recovered no hydrocarbons. The well was cased and suspended for deep coal gas and tight oil evaluation. Rig moves to Admella-1.
23 Dec 2011drilling spud● Neutral
Senex spudded Growler-11, an appraisal well 430m west of Growler-6, on 22 December (Beach 40%). It is the fourth well in the 11-well program, targeting 1,830m.
22 Dec 2011business combination▲ GoodMajor
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.
22 Dec 2011asset acquisition disposition● NeutralMajor
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.
22 Dec 2011security holder rights change● Neutral
4,563,187 executive rights vested and converted into the same number of fully paid shares under the long-term incentive plan. Remaining unlisted options and rights are listed. Administrative share issue.
20 Dec 2011business combination● Neutral
Beach confirms its Adelaide Energy offer will not be extended beyond close of trading on 22 December 2011. The offer was already declared final; this is a procedural confirmation.
20 Dec 2011material agreement● Neutral
Beach, as PRL2 operator, signed a services contract with BJ Services for fracture stimulation and perforating at Boundary Creek-2 and Wombat-4, starting January 2012. Beach can earn 33.3% for up to $33.5m under the farm-in.
19 Dec 2011flow test result▲ Good
Growler-6 flowed at a rate of over 1,300 bopd in a 1.5-hour free flow test (Beach 40%). Sustained output through a choke is expected at over 600 bopd. Growler-9 is being completed for production, and Growler-11 is next.
16 Dec 2011joint venture update● Neutral
Beach elected to stay in the Paralana geothermal joint venture and remain operator, while partner TRUenergy exited. Equity stays at Petratherm 79% and Beach 21%, and Beach keeps its option to add 15% after the two-well program.
15 Dec 2011drilling result▼ Bad
Jaguar-1, the first western flank exploration well (Beach 40%), is being plugged and abandoned at 1,850m. The target channel was filled with mudstone and siltstone rather than sand, though gas shows were seen. A setback for the exploration program.
7 Dec 2011production update▲ Good
Partner Drillsearch says PEL 91 discoveries (Beach 40% operator) should start oil in the March 2012 quarter, at 1,200 bopd net to Drillsearch, rising to over 3,000 bopd by September quarter. Trucking first, then a pipeline. Independent reserves review due early 2012.
7 Dec 2011drilling spud● Neutral
Baird-1, first of four wet gas exploration wells in PEL 106B (Beach 50% operator, Drillsearch 50%), spudded 7 December, targeting 2,870m. Best-case (P10) prospective resource is 19.6 BCF; drilling should take 14-18 days.
7 Dec 2011drilling progress report● Neutral
November report: Basham-1 found a minor oil column (cased and suspended) and Jaffa-1 in PEL 92 was a dry hole, ending a 25-well Beach-operated western flank program. Growler-6 and -9 cased as producers; Egypt's El Salmiya-1 and Al Jahraa-1 still drilling.
5 Dec 2011drilling spud● Neutral
Senex spudded Jaguar-1 on 2 December, first of six exploration wells in the 11-well western flank program (Beach 40%), targeting a TD of 1,850m. It is 2.3km north of Growler. Growler-6 and -9 appraisal wells were earlier successes.
2 Dec 2011business combination● NeutralMajor
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.
28 Nov 2011drilling result▲ Good
Operator Senex reports Growler-9 found a 17.5m gross oil column, thicker than expected, extending the Growler field (Beach 40%). Cased as a future producer, due online December 2011. Rig moves to Jaguar-1, the joint venture's first exploration well.
28 Nov 2011material agreement▲ GoodMajor
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.
22 Nov 2011production update▲ Good
Santos told Beach the Tantanna-Gidgealpa pipeline was back online at about 5,500 bopd, over two months ahead of Beach's initial expectations. Beach was considering trucking oil in early 2012 and planning a new Growler-to-Lycium oil pipeline.
22 Nov 2011production update▲ Good
Cooper Energy, Beach's 25% partner in PEL 92, says the Tantanna-Gidgealpa pipeline is reinstated, lifting JV oil output to about 5,500 bopd. Cooper raised its FY12 oil guidance 18% to 480,000 barrels.
18 Nov 2011business combination▲ GoodMajor
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.
18 Nov 2011business combination▲ Good
Beach's Adelaide Energy stake reaches 79.91% at 18 November after the target board's recommendation. Beach says it will compulsorily acquire the remaining shares if it reaches 90% when the offer closes.
17 Nov 2011business combination▲ Good
Beach's relevant interest in Adelaide Energy passes 65%, at 65.53%, as acceptances continue. The 20c price is final and the offer closes 22 December unless extended or withdrawn.
16 Nov 2011investor presentation● Neutral
Conference presentation repeats known points: the final 20c Adelaide Energy offer (~$94m), 2P reserves of 77 MMboe, FY12 production guidance of 7.5 MMboe and capex of $355.1m across 110 wells. No new information.
16 Nov 2011business combination● Neutral
Chairman Bob Kennedy writes to Adelaide Energy shareholders urging them to accept the 20c offer, citing Beach's 62.25% holding, and attaches the bidder's statement. Repeats known arguments.
15 Nov 2011business combination● Neutral
Beach declares its 20c-a-share Adelaide Energy offer final, so the price will not be raised. Its stake stood at 62.25% at 14 November; offer still closes 22 December.
14 Nov 2011business combination● Neutral
Beach media release says it has requisitioned the Adelaide Energy meeting to remove the board, with its stake at 60.93% at 11 November close. The three proposed new directors are all Beach directors; offer closes 22 December.
14 Nov 2011business combination▲ Good
Beach's relevant interest in Adelaide Energy rises to 60.93% through continued on-market acceptances of its 20c offer, which closes 22 December unless extended or withdrawn.
14 Nov 2011business combination● Neutral
Adelaide Energy confirms receiving Beach's request for a meeting to remove all its directors and install Butler, Davis and Moretti. The meeting is expected no later than 11 January 2012, with notice within 18 days.