Past year: ▼ 33%(83.5c – 1.29 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
13 Aug 2010capital raising announcement● NeutralMajor
Somerton, 51.9% held by Beach per earlier context, is raising $13.8m at 13c: a $0.7m placement and a 2-for-1 rights issue, 90% underwritten. Beach backs it and signs a Strategic Alliance Agreement providing support services; $0.7m repays Mitsui.
10 Aug 2010farm in farm out agreement▲ GoodMajor
Beach signed an unconditional farm-in with Lakes Oil, firming the 14 April conditional deal. It can earn up to 50% of onshore Gippsland PRL2 (Wombat tight gas) by spending $50m: 15% for $10m in stage one, then up to 50%. Needs Victorian government approval.
6 Aug 2010well test result● Neutral
Drillsearch says extended production testing of Canunda-1 (Beach 50% operator) resumes about 9-14 Aug for at least two weeks, with flow rates raised, to size the wet gas accumulation. Beach added storage and trucking after rain halted the test; up to 18,000 bbl expected.
4 Aug 2010asset acquisition disposition▲ Good
Second release on the same Kuwait Energy deal: 22% of Abu Sennan and 15% of Mesaha for up to US$33m. It adds that North Shadwan NS-377 first production is expected in the second half of 2010, with at least four Abu Sennan wells in FY11.
4 Aug 2010asset acquisition disposition▲ GoodMajor
Beach agreed to buy from Kuwait Energy a 22% interest in Egypt's Abu Sennan concession and 15% of Mesaha, for up to US$33m of work programs over two years. Completion needs Egyptian approval; it widens Beach's Egypt portfolio beyond North Shadwan.
4 Aug 2010drilling progress report▲ Good
Henderson 4-25H was fracture stimulated and flowed about 1,000 bbl/d of oil and fluids on test. Watson West-1 (Beach 38%) is suspended as an oil producer; Encounter-1 shale gas well, delayed earlier, is due to start late August; heavy rain halted Canunda and Coonatie work.
28 July 2010joint venture update● Neutral
Beach agreed to fund A$2.7m of Petratherm's Paralana costs early and no longer has to pay the first A$5m of Paralana 3, though it pays 21% of costs. Fracture stimulation of Paralana-2, planned earlier, is now set for August 2010.
21 July 2010asset acquisition disposition▲ GoodMajor
Beach agreed with Sundance to buy about a 15% net revenue interest in Bakken Sections 26 and 35, adding to its Section 25 stake. The Henderson 4-26/35H well starts early August, targeting about 600,000 barrels gross; it builds shale experience for the Cooper Basin.
16 July 2010joint venture update▲ Good
Petratherm, Beach's Paralana geothermal partner, signed the A$62.762m Commonwealth REDP funding deed, resolving the earlier open funding question. Money for a 30 MW demonstration depends on proving the concept, planned for 2011.
15 July 2010drilling scheduled▲ GoodMajor
Drillsearch says the PEL 91 joint venture (Beach operator 40%, Drillsearch 60%) plans up to five Western Flank oil wells, targeting 3.5 million barrels mean unrisked recoverable. Drilling needs a rig and should start by Dec 2010/Jan 2011; Chiton returns to production in early August.
13 July 2010drilling result▲ GoodMajor
Watson West-1 (Naccowlah Block, Beach 38.5% per Drillsearch) found 6-8 feet of oil pay and will be completed as a Basal Birkhead oil producer. Initial oil in place is estimated at 300,000-400,000 barrels, a small near-field discovery.
7 July 2010drilling progress report▲ Good
First monthly drilling report: Canunda-1 (Beach 50%) flowed 10.5 MMscf/d with high condensate, now choked back by trucking limits. Inca-1 (30%) is suspended as a future oil producer, and Henderson 4-25H reached 4,865 m TD, with fracture stimulation due end July.
7 July 2010well test result▲ Good
Drillsearch (Beach's 50% partner) reports Canunda-1 produced over 2,500 barrels of condensate in 10 days. It is choked back to about 1 MMscf/d and 180 bbl/d of liquids by storage and trucking limits; no reserve estimate is given yet.
6 July 2010investor presentation● Neutral
Beach manager Gordon Moseby gave a general presentation on world energy demand and the case for gas in Australia. It is background education with no new company results, figures or decisions.
6 July 2010material agreement▲ Good
Beach signed a non-binding MOU with Japan's ITOCHU to explore supplying gas from its onshore Australian portfolio to a possible integrated LNG project. It is an investigation only, with no commitment or financial terms stated.
25 June 2010other▼ BadMajor
Beach guides FY10 underlying profit of $30-40m and will write off about $64m of Bass Basin exploration. A further $43m from Arrow is booked if the Shell/PetroChina offer completes. BMG owners are weighing options beyond a replacement FPSO.
25 June 2010other● Neutral
Chairman's letter to shareholders restating the $140m cash, no debt and the $64m Bass Basin write-off. It also says the proposed Resources Super Profit Tax adds uncertainty in Australia, and that Beach holds a majority of Somerton. Mostly repeats known points.
24 June 2010material agreement▲ GoodMajor
Beach signed the Production Sharing Agreement for 100% of the Lake Tanganyika South concession in Tanzania, completing the earlier exclusive negotiation right. The 11-year term has a well commitment in each of the second and third phases, with the option to relinquish at the end of each phase.
24 June 2010material agreement▲ Good
Media release repeating the Tanzania PSA signing for 100% of Lake Tanganyika South, pitched at Uganda-style rift oil plays. It restates the 4+4+3 year phases and a well in each of phases two and three. No new substance.
23 June 2010drilling scheduled▼ Bad
The two-well PEL 218 shale gas program is delayed to mid-late August, starting with Encounter-1, because rig parts were held up by weather in Thailand. Holdfast-1 now follows. Beach will also move to monthly routine drilling reports.
16 June 2010drilling progress report● Neutral
Weekly report: Genoa North-2 is cased and suspended as a future oil producer and the rig moves to the Inca-1 exploration well. Henderson 4-25H is at 3,166 m, starting its horizontal section.
9 June 2010drilling progress report● Neutral
Weekly report: Genoa North-2 (Beach 30%) spudded 3 June and is drilling at 1,811 m. Henderson 4-25H in North Dakota's Bakken play (Beach 23.15%, with Sundance) is at 1,932 m.
8 June 2010production update● Neutral
ROC says BMG (Beach 30%) was shut in from 4 May after repairs to the FPSO mooring turret and buoy, and restarted on 6 June. Repairs finished without incident.
3 June 2010investor presentation● Neutral
UBS conference presentation by the Managing Director repeating known points: 66 MMboe 2P, $140m cash and no debt, FY10 guidance 7.4 MMboe, shale gas wells, Egypt first oil and Tanzania PSA timing. No new substance.
2 June 2010drilling progress report● Neutral
Weekly report: Genoa-3 (Beach 30%) is cased and suspended as a future oil producer. The rig is moving to drill Genoa North-2, about 3 km to the north.
26 May 2010drilling progress report▲ Good
Weekly report: Genoa-3 (Beach 30%) reached 1,786 m total depth and is being cased and suspended as a future Hutton Sandstone oil producer.
19 May 2010drilling spud▲ Good
Santos-operated Genoa-3 (Beach 30%) spudded on 18 May, the first Cooper Basin drilling since the floods. Beach expects all three Santos rigs back at work before the end of June.
18 May 2010regulatory community update● Neutral
Petratherm reports a four-day community consultation on the Paralana geothermal project, well received by stakeholders. It is a step toward the fracture stimulation Beach (earning 21% per our records; release says up to 36%) is waiting on. No new results.
7 May 2010investor presentation● Neutral
Macquarie conference presentation on Cooper Basin shale gas. It repeats known points but gives FY10 production guidance as now 7.4 MMboe (down from 8.0, citing flooding) and cash of $140m at 31 March 2010, with no debt.
7 May 2010director officer appointment● Neutral
From 1 July 2010 Neil Gibbins becomes Chief Operating Officer and Steve Masters Chief Commercial Officer. Hector Gordon stays an Executive Director while acting as Managing Director of Somerton Energy.
