13 July 2009other● Neutral
Drillsearch says Marino-1, the second PEL 91 well, is approved and expected to spud in September 2009 after Chiton-1. With Chiton-1, mean unrisked prospective resource is 3.5 mmbbl. Its reject recommendation is unchanged.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
13 July 2009investor presentation● Neutral
Drillsearch's broker presentation repeats its board's unanimous recommendation to reject Beach's offer as inadequate and opportunistic, notes the offer cannot be increased, and outlines its strategy and management. No new figures in the readable text.
13 July 2009drilling spud● Neutral
Willunga-1, the fifth PEL 92 well, spudded 12 July and was at 608 m. It targets 1.2 mmb P50 in the Namur, to 1,638 m at A$1.588m. Beach holds 75%. Murninnie-1 is the last well in the program.
8 July 2009drilling result▼ BadMajor
Cheetima-1 in PEL 92 (Beach 75%) was plugged and abandoned with no commercial hydrocarbons, a dry hole against a 1.2 mmb mean target. The rig moves to Willunga-1. Burnside-1 was sidetracked after mechanical issues, now Burnside-1ST1 at 2,320 m.
6 July 2009other● Neutral
Beach formally notifies the ASX that its Drillsearch offer closes 5pm Adelaide, 14 August 2009, and that its relevant interest rose from 13.2% to 14.88% by 3 July. Repeats the extension already announced.
6 July 2009other● Neutral
Drillsearch's third supplementary statement urges rejection, saying only 14.9% has been reached and the offer, final at 1 Beach share per 27, is below Drillsearch's market price. It stresses the late-August Chiton-1 spud. These are Drillsearch's claims.
3 July 2009business combination● NeutralMajor
Beach waived all conditions on its Drillsearch offer, making it unconditional, and extended it to 14 August 2009. Its voting power was 14.88%, and it said Drillsearch had put forward no alternative transaction.
3 July 2009flow test result▲ GoodMajor
Butlers-1 in PEL 92 flowed 2,600 bopd after completion on a 2.5 m perforation. Post-drilling estimate is about 1.0 mmb gross oil. Beach holds 75%. It will be connected to the Perlubie-Parsons gathering system over coming months.
3 July 2009business combination● Neutral
Supplementary bidder's statement: Beach will pay brokers a handling fee of 0.75% of consideration on Drillsearch acceptances, between A$50 and A$750 each. It supports the extended, now unconditional offer.
3 July 2009other● Neutral
Drillsearch said the Chiton-1 well, the first of two PEL 91 wells, was approved by it and Beach (operator) and was expected to spud in late August 2009. Its board's recommendation to reject Beach's offer was unchanged.
2 July 2009other● Neutral
Drillsearch's supplementary target's statement reports the PEL 106 Brownlow-1 and Canunda-1 gas wells were completed, with clean-up rates above 12 and about 9 mmscfd. It keeps its reject recommendation. Repeats results Beach already reported.
1 July 2009drilling progress report▲ Good
Cheetima-1 spudded 1 July. Brownlow-1 flowed at over 12 mmscfd and Canunda-1 at about 9 mmscfd in clean-up tests, so Beach has met its PEL 106 farm-in and will hold 50%. Perlubie South-1 flowed 740 bopd. Burnside-1 has casing issues.
30 June 2009other▲ Good
Media release on the debt-free milestone: the MD says Beach has over A$125m cash and argues the market undervalues it. Cash is lower than the over A$270m cited on 19 June (inference: debt repayment). Notes the all-scrip Drillsearch bid of about A$50m.
30 June 2009debt financing▲ GoodMajor
Beach has fully repaid the debt from its 2006 Delhi acquisition, over A$650m borrowed, using part of the A$260m Arrow cash from the Tipton West sale. It starts FY2010 debt free, resolving the earlier debt position.
30 June 2009drilling spud● Neutral
Petratherm reports drilling has begun on Paralana-2, a 4 km deep geothermal injection well, with about 60 days planned. Beach operates the drilling and is earning 21%. Follows the spud expected earlier this month.
30 June 2009other● Neutral
Drillsearch issues its formal target's statement recommending shareholders reject Beach's offer as inadequate and opportunistic. Implied value is 2.9 cents per share at Beach's 78c price on 26 June, down from 3.05c earlier. It cites reserves and resources and undisclosed Beach PEL 91 knowledge.
30 June 2009drilling spud● Neutral
Petratherm's media release marks the Paralana-2 spud, aiming for commercial geothermal supply by early 2011. Beach is contributing A$10m toward the first two wells. Repeats the ASX release with promotional detail.
29 June 2009drilling scheduled● Neutral
Cooper Energy says the rig has moved to Cheetima-1, fourth PEL 92 well, spud expected next day. Target is 840,000 barrels P50 in the Namur, to 1,814 m at A$1.61m. Beach holds 75%. Willunga-1 and Murninnie-1 follow.
26 June 2009director officer appointment● Neutral
Media release version of the same announcement: Glenn Davis made Deputy Chairman and Hector Gordon made new CEO, with Reg Nelson concentrating on strategic growth opportunities. Repeats the ASX announcement with added commentary.
26 June 2009joint venture update● Neutral
Essential Petroleum agreed to withdraw from VIC/P46 as part of resolving its outstanding obligation to Beach and Mitsui from the Fermat-1 well, which is still being worked out. Beach (operator) goes to 66.67% and Mitsui to 33.33%.
26 June 2009director officer appointment● NeutralMajor
Glenn Davis becomes Deputy Chairman. Chief Operations Officer Hector Gordon becomes the newly created CEO, while MD Reg Nelson will focus on high-level strategic growth opportunities. Beach says it has a strong balance sheet and nil effective debt.
25 June 2009business combination● NeutralMajor
Beach sends Drillsearch shareholders a letter urging acceptance of its offer, now open until 16 July. Says the offer is fully priced, with no intention to increase it, and values Drillsearch at about 3.05c per share (22% premium to pre-bid close).
25 June 2009resource reserve update● NeutralMajor
Target Drillsearch, which Beach is bidding for, reports 2P reserves of 1.54 mmboe and 2C contingent resources of 7.81 mmboe, reviewed by Gaffney Cline. It says Beach held PEL 91 prospect data not in its bidder's statement. This is the target's argument against Beach's offer.
24 June 2009joint venture update▲ Good
Petratherm says conditions on the A$7m Paralana drilling grant have been met in principle. Beach's 21% share of the benefit is proportional; 60% (A$4.2m) is payable upfront before the first well completes. Final conditions await a REDI termination deed.
24 June 2009drilling result▲ GoodMajor
Butlers-1 intersected a 4.5 m oil column in high-quality Namur reservoir and will be cased and suspended. It is the second straight oil discovery in the six-well PEL 92 program (Beach 75%). Rig moves to Cheetima-1, mean 1.2 mmb.
23 June 2009drilling progress report▲ Good
Cooper Energy reports Butlers-1, third PEL 92 well (Beach 75%), has oil shows in the Namur Sandstone primary target. Drilling continues to depth, with wireline logs due later this week. Not yet a confirmed result.
23 June 2009joint venture update▼ Bad
ROC says the Basker-5 workover at BMG (Beach 30%) has been suspended after a log showed a more complex mix of water and gas. The expected 800 bopd gain is now uncertain. The rig moves to Basker-3.
19 June 2009investor presentation● Neutral
Managing Director Reg Nelson's UBS conference presentation reviews strategy and the Tipton West sale. It says effective debt is nil, with 260m received. Also covers the Drillsearch bid and upcoming drilling. Largely repeats known facts.
17 June 2009drilling result▲ GoodMajor
Perlubie South-1 intersected a 3 m oil column in the Namur and is cased and suspended as a future oil producer. Rig moves to Butlers-1. Burnside-1 (Beach 7.34%) spudded 15 June in the Browse Basin; Paralana-2 spud expected next week.
17 June 2009joint venture update● Neutral
Petratherm repeats Beach's weekly report that Paralana-2 is rigging up, with spud expected early next week, a 4,000 m depth and about 60 days to drill. Beach is well operator, earning 21%. Repeats known information.