Past year: ▼ 33%(83.5c – 1.29 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
10 Feb 2012flow test result▲ GoodMajor
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.
10 Feb 2012business combination▲ GoodMajor
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.
9 Feb 2012drilling spud● Neutral
Coolawang-1, the third of four wet gas exploration wells in PEL 106B (Beach 50% operator), spudded 9 February. It targets the Patchawarra Formation to 2,825m, with high-case prospective recoverable gas of up to 19.6 BCF, and will take a 30m coal core.
6 Feb 2012drilling result▼ Bad
Spitfire-1 (PEL 104, Beach 40%) found an oil-water contact and recovered only 2.5 barrels of clean oil in testing. It was classed non-commercial and is being plugged. Senex sees follow-up drilling updip. Rig moves to Growler-8.
2 Feb 2012well test result▲ Good
Drillsearch reports all four Bauer wells and Hanson-1 in PEL 91 (Beach 40% operator) are completed. Initial one-hour tests: Bauer-1 6,048 bopd, Bauer-3 1,152 bopd, Hanson-1 763 bopd. Production facilities are targeted before the end of the June quarter 2012; independent reserves review is under way.
1 Feb 2012drilling progress report● Neutral
January report: Admella-1 (PEL 106B) flowed gas at up to 5.5 MMcfd but was sub-economic and is being plugged. Noosa-1 (ATP 633P) was dry. Parsons-4 tested at 7,600 bopd. Moonta-1 spudded 23 January in PEL 218; Encounter-1 fracture stimulation slipped to mid-February.
31 Jan 2012quarterly activities report● Neutral
December quarter production was 1.72 MMboe, down 1%, and revenue was $142.9m, down 6%. Net cash fell to $58.5m from $146.8m last quarter, which includes the Adelaide Energy takeover. FY12 guidance of 7.5 MMboe is maintained, with a stronger second half expected.
23 Jan 2012drilling spud● Neutral
Senex spudded Spitfire-1 on 20 January, the sixth well of the 11-well program and second of six exploration wells (Beach 40%). It is 2.5km west of the Growler field, targeting the Birkhead Formation to 1,830m.
19 Jan 2012material agreement▲ GoodMajor
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.
18 Jan 2012drilling scheduled● Neutral
Strike outlines two unconventional wells: Marsden 1 in PEL 95 (Strike 50%) spuds in February, then Davenport 1 in PEL 94 (Strike 35%). Both are operated by Beach, with total cost of $5.5m, of which Strike pays about $2.5m. These are the first dedicated unconventional wells in these permits.
17 Jan 2012drilling result▲ Good
Growler-7 found a 20m gross oil column (at least 18.8m net pay), the thickest in the Growler field so far, and was cased as a producer due online early February (Beach 40%). Rig moves to the Spitfire-1 exploration well.
9 Jan 2012production update▲ GoodMajor
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.
9 Jan 2012drilling spud● Neutral
Senex spudded Growler-7, the fifth well in the 11-well western flank program, on 5 January (Beach 40%). It also reports Growler-9 on production from 6 January, taking seven Growler wells online, with Growler-11 being completed next.
9 Jan 2012production update▲ Good
Drillsearch reports wet gas from the Middleton Brownlow pilot in PEL 106B (Beach 50% operator) is flowing and being sold to the SACB JV. Initial rate is expected at 25 MMscf/d raw gas and 1,250 bbl/d LPG and condensate, above earlier expectations.
5 Jan 2012drilling spud● Neutral
Admella-1, the second of four wet gas exploration wells in PEL 106B (Beach 50% operator, Drillsearch 50%), spudded 4 January 2012. Targets the Patchawarra Formation, with high-case prospective recoverable raw gas of 19.6 BCF; drilling to 2,951m, 14-18 days.
4 Jan 2012drilling progress report● Neutral
December report: Baird-1 (PEL 106B) and Yaroomba-1 (Beach 46.95%) found no commercial gas or oil, and Jaguar-1 was dry. Growler-11 succeeded. Encounter-1 fracture stimulation due mid-late January; Moonta-1 in PEL 218 to spud mid-January.
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.
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.
