26 Sept 2011drilling spud● Neutral
Drillsearch reports Bauer-4, the first of three Bauer development wells in PEL 91 (Beach 40% operator), spudded 23 September. Drilling is expected to take 8-10 days. Bauer gross mean reserves are put at 3.5 MMbbl.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
22 Sept 2011dividend declaration● Neutral
Details of the 1.00c fully franked final dividend: paid 30 September, record date 9 September. The dividend reinvestment plan price is $1.154 with a 5% discount. Not underwritten.
21 Sept 2011resource reserve update▲ GoodMajor
Drillsearch (PEL 91 partner, 60%) reports 2P reserves of 4.2 MMbbl gross for the new PEL 91 oil discoveries (including its own Arno), with Beach's operator estimates behind the Bauer, Hanson and Snellings figures. The JV approves an accelerated multi-field development. Bauer drilling ends by December quarter.
21 Sept 2011drilling scheduled▲ GoodMajor
Beach says mapping suggests Bauer field mean recoverable reserves of about 3.5 MMbbl gross, up from 2.0. A three-well appraisal program starts, with production expected in H1 2012. Butlers-4 should be online before end-2011, with a reserves upgrade expected.
19 Sept 2011drilling result▲ Good
Cooper Energy reports Butlers-4 (PEL 92, TD 1,393m) hit a 7.5m oil column, in line with pre-drill expectations. It is suspended for tie-in. This ends the 15-well 2011 campaign, with three new discoveries and a 37% exploration success rate.
15 Sept 2011regulatory community update● Neutral
Petratherm says the Paralana 2 flow test is planned to start late next week and run 7-14 days. It will be the first hot fluid brought to the surface at Paralana. Beach holds 21%. Results are promised soon after completion.
7 Sept 2011drilling progress report● Neutral
August report: PEL 92 Elliston-1 found 3m of oil and was suspended as a producer; Perlubie-2 was uncommercial; Germein-1 was suspended. Searcy-1, the last PEL 91 well, had only poor shows and was abandoned. Egypt's first two Abu Sennan wells (22%) report hydrocarbon shows.
6 Sept 2011regulatory community update▲ Good
Petratherm says the government will bring forward A$1.2m of its A$7m geothermal grant to prepare for Paralana 3. Funds are released after the flow test and a JV decision to proceed. Beach is a JV partner (21%).
6 Sept 2011drilling result▲ Good
Cooper Energy reports Germein-1 in PEL 92 found a 2.5m net oil column in the Namur. It is suspended as a future producer; recoverable volumes are not yet estimated. Adds to the 2011 PEL 92 run of small finds (Beach 75%).
2 Sept 2011investor presentation▲ GoodMajor
Roadshow deck for US and Asian investors. Gives 2P reserves of 77 MMboe (up 17%) and 2P plus 2C of 660 MMboe (2C up 96%) at 30 June 2011. FY12 production guidance 7.5 MMboe and capex A$355.1m, 110 wells planned.
31 Aug 2011annual report● NeutralMajor
FY11 result: statutory net loss A$97.5m (FY10 profit A$33.1m) after impairments; underlying profit A$41.4m, up 7%. Net cash A$173.3m. Final dividend 1.0c, on top of the 0.75c interim. New A$150m facility replaced the A$35m one.
30 Aug 2011investor presentation● Neutral
FY11 results presentation repeating the report: sales revenue $496.4m, underlying profit $41.4m, net loss $97.5m, cash $173m, new $150m finance facility. Highlights shale gas booking, Western Flank success and two rigs secured. No new information.
30 Aug 2011annual report▼ Bad
Full FY11 financial report: net loss $97.4m versus $33.1m profit prior year. Notes post-year events: the $150m facility, the Icon ATP 855P settlement (Beach gets 40%) and the Adelaide Energy placement. Final dividend 1.0c payable 30 September.
30 Aug 2011annual report▼ Bad
FY11 preliminary report: revenue $498.2m (+2%) but a net loss of $97.5m, driven by asset impairments; underlying profit $41.4m (+7%). Cash is $173m. Final dividend is 1.0c. Highlights include the 2 Tcf shale booking and the Impress takeover.
30 Aug 2011drilling scheduled● Neutral
Icon says Beach has secured Ensign#65 for the ATP 855P farm-in well, a horizontal pilot well due by June 2012. Beach funds Icon's share (about $16m gross) except $1.75m from Icon. Repeats the rig news in Beach's 29 August release.
29 Aug 2011contract award▲ GoodMajor
Beach has secured two Ensign rigs for a 2012 shale gas program in PEL 218 and ATP 855P. Ensign#16 (about January 2012) will drill vertical wells; the new Ensign#65 (about April 2012) will drill horizontal pilot wells. The aim is to expand the 2 Tcf booking.
29 Aug 2011drilling progress report● Neutral
Drillsearch says seismic surveys have begun in PEL 91, where Beach holds 40% and operates: a 478 sq km 3D survey and a 252 line-km 2D survey. They cover 31 prospects with up to 93 MMbbl unrisked gross potential, due to finish in the December quarter.
24 Aug 2011drilling result▲ GoodMajor
Beach announces oil and gas shows at its first two Abu Sennan wells in Egypt, GPZZ-4 and Al Ahmadi-1, with flow testing continuing. Both wells lie within 10 km of pipeline infrastructure. Beach holds 22%; Kuwait Energy operates with 50%. Volumes not yet known.
19 Aug 2011material agreement▲ GoodMajor
Beach signs with Senex to build Western Flank oil flowlines to Moomba (about $40m total, shared), commissioning around June 2012. Beach gets 40% of the Growler-Lycium link and 60% of the Lycium-Moomba trunkline. A six-well PEL 104/111 program is due from October, and PEL 91/92 tenure was extended 12 months.
19 Aug 2011drilling result● Neutral
Drillsearch reports Searcy-1, the last of the five PEL 91 wells, found only oil shows in the Birkhead and will be abandoned as non-commercial. The program finishes with four discoveries from five wells. An expanded program follows, starting with Knights-1 in the December quarter.
19 Aug 2011material agreement● Neutral
Senex announces an agreement with Beach to build two flowlines carrying Growler oil to Moomba, at about $20m net to Senex. Beach will construct and operate them, targeting completion by June 2012, subject to Cooper Basin JV approval of the Moomba tie-in.
15 Aug 2011business combination● Neutral
Somerton Energy says it has begun preliminary merger talks with Adelaide Energy, with no agreed price or terms and no certainty of a deal. It cites Beach, a major Somerton shareholder, agreeing to take a placement in Adelaide Energy.
15 Aug 2011capital raising announcement▲ GoodMajor
Beach commits $12.1m to Adelaide Energy: 14m shares at 16.5c now, then a further 59.5m shares and 75m options (40c strike, to 2016) if shareholders approve. This would give Beach 19.95%, deepening ties in the Nappamerri Trough shale gas play.
15 Aug 2011drilling result▲ Good
Cooper Energy reports Elliston-1 in PEL 92 found a 3m net oil column in the Namur, about 0.11 million barrels recoverable (P50). It will be tied in as a production well. Beach operates with 75%; the rig moves to Perlubie-2.
11 Aug 2011drilling spud● Neutral
Drillsearch reports Searcy-1, the fifth and final PEL 91 well (Beach 40% operator), spudded 10 August. Mean prospective resource is 1.1 million bbl in the Birkhead, high side 2.2 million bbl. Drilling expected to take 10-14 days.
10 Aug 2011resource reserve update▲ GoodMajor
Beach booked an initial 2 Tcf gross contingent shale gas resource in PEL 218 (Beach 90%), over 330 MMboe or about five times its June 2010 reserves. It rests on 100 sq km around each of Holdfast-1 and Encounter-1. Independent review to follow.
10 Aug 2011investor presentation● Neutral
Petratherm released a Paralana project update presentation and video, covering the fracture stimulation results and a planned Paralana 2 flow test this quarter. Beach is a joint venture partner. Mostly repeats the 19 July results.
10 Aug 2011resource reserve update▲ Good
Media release repeating the 2 Tcf PEL 218 shale gas booking (1 Tcf per well, 100 sq km each), with comparisons to Cooper Basin history of about 6 Tcf produced. Two horizontal pilot wells planned for 2012. No new figures.
10 Aug 2011resource reserve update▲ Good
Adelaide Energy (10% of PEL 218) says its share of Beach's booking is 200 Bcf, about 33 MMboe. Third-party restatement of Beach's 2 Tcf booking.
3 Aug 2011drilling progress report● Neutral
July report: Wheatons-1 in PEL 92 was dry, Rincon-1 and Bauer-1 succeeded, and Arno-1 was judged sub-commercial and not cased, so the earlier Arno hopes did not pan out. Holdfast-1 flowed 1.8 MMscf/d and will be shut in for pressure build-up. Al Ahmadi-1 in Egypt is drilling.