26 Oct 2010drilling progress report● Neutral
Weekly report: Encounter-1 (Beach 90%) drilled 372 m to 2,445 m, still in the 12¼ inch hole, heading to intermediate casing at 2,600 m. Target depth remains 3,625 m. No shale results yet.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
25 Oct 2010material agreement▲ Good
Santos announced an agreement to supply 750 PJ of portfolio gas to GLNG over 15 years from 2014, with oil-linked pricing, conditional on a final investment decision on GLNG train two. Beach (20.21% of the JV) is in discussions on participating.
25 Oct 2010investor presentation● Neutral
Citi conference presentation by the COO repeating known points: 66 MMboe reserves, over $200m cash and undrawn facilities as at August 2010, the GLNG proposal (152 PJ share), Encounter-1 then Holdfast-1, stimulation in Q1 2011. No new results.
25 Oct 2010material agreement▲ GoodMajor
Beach says the Cooper Basin JV has received a Santos proposal to supply 750 PJ of gas to its GLNG project from 2014 over 15 years, oil-linked. Beach's share would be about 152 PJ. Terms are not agreed and discussions continue.
22 Oct 2010annual report● Neutral
Beach's 2010 Annual Report was released with notice of the AGM on 25 November 2010 in Adelaide. The chairman's letter discusses resource rent tax uncertainty and says reserves were unchanged despite flooding. It repeats the FY10 results already reported.
19 Oct 2010drilling progress report● Neutral
Weekly report: Encounter-1 (Beach 90%) is at 2,073 m, with 1,039 m drilled in the week. 13 3/8 inch surface casing is set at 1,030.8 m and the 12¼ inch hole is being drilled. Target depth is 3,625 m. No shale results yet.
12 Oct 2010joint venture update▲ Good
Petratherm reports wireline runs found no blockage in Paralana-2, reaching 3,688 m, the perforation depth, and confirmed well integrity. The cause of the August obstruction is still being investigated. Perforation and injectivity tests are expected to restart in October. This reverses the earlier obstruction concern.
7 Oct 2010farm in farm out agreement● Neutral
Somerton Energy, in which Beach is the largest shareholder (stated as 57%), will earn up to 5% of PRL2 by funding a third of the Wombat-2 and Boundary Creek-2 testing, up to $3.33m. Beach operates; Wombat-4 stimulation is expected in Q1 2011. This extends the Lakes Oil Gippsland farm-in.
6 Oct 2010investor presentation● Neutral
Conference presentation in London on Cooper Basin shale gas, covering the Nappamerri Trough geology and the two-well program. It repeats the potential gas in place of over 200 Tcf and the 66 MMboe reserves. No new results are given.
6 Oct 2010investor presentation● Neutral
Amended version of the same London shale gas presentation; the visible change is removal of a draft internal note in the compliance slide. No new information.
6 Oct 2010joint venture update● Neutral
Petratherm says a wireline crew is investigating the blockage at 3,200 m in Paralana-2 (Beach 21%) that stopped perforation in late August. The three-day check should report next week. Perforation and an injectivity test come before the main stimulation.
6 Oct 2010drilling progress report● Neutral
September drilling report: Encounter-1 began 3 October and is at 952 m. Canunda-1 testing resumes next week after fishing wireline out. Coonatie-20 is cased and suspended as a future gas producer. Henderson 4-26/35H is drilling its lateral, targeting 600,000 bbl recoverable (90,000 net).
5 Oct 2010drilling spud▲ GoodMajor
Adelaide Energy reports Encounter-1, the first PEL 218 shale gas well (Beach 90% operator), began drilling on 3 October after slipping from earlier dates. It is a vertical test to about 3,700 m, taking around 50 days, with Holdfast-1 next.
23 Sept 2010dividend declaration● Neutral
Beach gives details of its 1c final dividend (0.5c franked), paid 24 September. The dividend reinvestment plan issue price is 64.77 cents after the 5% discount. It is not underwritten. This confirms the dividend announced with the FY10 results.
13 Sept 2010regulatory community update▲ Good
Exploration began in Tanzania's Lake Tanganyika South (Beach 100%): Fugro started airborne magnetic and gravity surveys on 9 September, taking up to three months. Separately, pre-emption waivers are in for Mesaha (15%); Abu Sennan (22%) still awaits one EGPC waiver, and both need Egyptian approval.
9 Sept 2010joint venture update▲ GoodMajor
Beach and its BMG partners settled all claims with BW Offshore for a total US$32.5m cash payment within 14 days, with terms confidential. This resolves the dispute, which earlier context put at a claim of about US$90.1m.
6 Sept 2010asset acquisition disposition▲ GoodMajor
Beach received the $43.2m Arrow contingent payment for Tipton West, taking total proceeds to $383.3m and cash to about $200m. Up to $26.8m more may follow. This resolves the receivable flagged in earlier results.
6 Sept 2010resource reserve update▲ GoodMajor
Drillsearch says Beach, as operator, considers the Brownlow, Canunda, Middleton and Udacha wet gas discoveries commercial. Beach puts their 2P reserves at 5.6 MMboe gross, converting contingent resources; Gaffney Cline's review of this is still in progress. It resolves the earlier testing-only position.
1 Sept 2010drilling progress report● Neutral
August drilling report: Canunda-1 testing is still suspended by rain. Encounter-1 (Beach 90%) is now scheduled for mid September, with the rig mostly on site. Coonatie-19 is cased and suspended, Coonatie-20 is at 2,779 m, and Henderson 4-26/35H spuds this week.
31 Aug 2010joint venture update▼ Bad
Petratherm reports the Paralana-2 injectivity test is delayed at least three weeks after equipment hit an obstruction at 3,200 m, needing a coil tubing clean-out in late September. Main Q4 2010 stimulation is still expected to hold.
30 Aug 2010annual report● NeutralMajor
FY10 net profit after tax fell to $33.1m (underlying $40.8m) on $489m revenue, hit by Cooper flooding and the Tipton West sale. 2P reserves held at 66 MMboe, contingent 297 MMboe, cash $170m. Final dividend 1c.
30 Aug 2010dividend declaration● Neutral
Beach confirms its 1c final dividend, 0.5c franked: record date 10 September, paid 24 September. The dividend reinvestment plan carries a 5% discount and the dividend is not underwritten.
30 Aug 2010investor presentation● Neutral
Results presentation repeating FY10 figures: production 7.3 MMboe, 2P reserves 66 MMboe, net profit $33m, nil debt, $170m cash and a $43m Arrow receivable. No new information beyond the results release.
30 Aug 2010annual report● Neutral
Full FY10 report and Appendix 4E: revenue $489.2m (down 16%), net profit $33.1m (down 87%), cash $169.9m, net assets $1.37bn. Final dividend 1c, partly franked. Chairman flags uncertainty over resource rent taxes. Detail repeats the results release.
25 Aug 2010drilling progress report● Neutral
Encounter-1, first Nappamerri Trough shale gas well (PEL 218, Beach 90%), is now expected to spud early to mid September after the rig moved in; this slips from late August. Henderson 4-26/35H rig is moving in. Henderson 4-25H is producing about 500 bopd.
25 Aug 2010drilling scheduled● Neutral
Adelaide Energy (10% of PEL 218) confirms Beach as operator expects Encounter-1 to spud early to mid September 2010. Adelaide Energy is carried through the first $25m gross of spending. It repeats Beach's own update.
25 Aug 2010joint venture update● Neutral
Petratherm says Paralana-2 work starts this week: perforation and a small water injection test, then full fracture stimulation in Q4 2010. This slips the earlier August stimulation start; it helps pick the Paralana-3 location (Beach 21%).
24 Aug 2010other● Neutral
Notice that Beach will release its FY2010 results on 30 August, with a webcast at 11am AEST. Administrative only, no results content.
19 Aug 2010capital raising announcement● Neutral
Somerton's media release on its $13.8m raising puts Beach's holding at 46.07% (earlier context said 51.9%). Somerton is evaluating an incomplete, non-binding Beach farm-in offer and targets unconventional oil.
16 Aug 2010asset acquisition disposition● Neutral
Drillsearch is selling its 2% Naccowlah Block interest to Bounty Oil & Gas for $1.15m. Beach's 38.5% share in the Santos-operated block is not affected by this announcement.