31 July 2008other▲ Good
Media version of the quarterly: FY08 revenue up 20% to a record A$564m, production 9.3 mmboe. Only 954,000 barrels remain hedged at an average cap of US$79/bbl. Largely repeats the quarterly report and prior hedge close-out.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
31 July 2008quarterly activities report▲ Good
June 2008 quarter: record sales revenue of A$167m (+13%) and record full-year revenue of A$564m. Quarter included the A$191m placement at A$1.43 and the A$123m BMG 10% sale to Sojitz completed. Egypt and Tanzania entries are previously announced.
30 July 2008drilling progress report● Neutral
Weekly report: Santos-operated Naccowlah South-17 (Beach 38.5%) and James-2 (Beach 17.14%) are drilling, along with Kirralee-2 and Mudera-16. No new results; Tipton CSG drilling continues.
23 July 2008drilling progress report● Neutral
Weekly report: Santos-operated Mudera-15 and Mudera-14 RE1 (Beach 20.21%) were cased and suspended as future Coorikiana gas producers. Kirralee-2 is cementing surface casing, and Tipton CSG drilling continues.
21 July 2008security holder rights change● Neutral
Prospectus for the free 1-for-10 bonus options: A$2.00 exercise price, expiry 30 June 2010, record date 31 July 2008, about 103 million options. Exercising all would raise about A$206m. Formal documentation of the previously announced issue.
18 July 2008security holder rights change● Neutral
Chairman's letter to optionholders: existing options carry no right to the 1-for-10 bonus options, so holders must exercise by 5pm Adelaide time on 31 July 2008 to take part. Administrative notice on the previously announced bonus issue.
16 July 2008drilling result● Neutral
Weekly report: Big Lake-88 (Beach 20.21%) was plugged and abandoned, a dry hole. Deparanie-2 was cased and suspended pending evaluation. Tipton CSG drilling continues.
9 July 2008drilling progress report● Neutral
Weekly report: Santos-operated Narcoonowie-7 (Beach 20.21%) reached 1,678 m and will be cased as a future oil producer. Deparanie-2 is logging and Big Lake-88 is drilling.
7 July 2008material agreement▲ GoodMajor
Operator Anzon announced letters of intent for a new Suezmax FPSO from BW Offshore and a drilling rig for the Basker-Manta-Gummy project (Beach 30%). The expansion targets about 20,000 bopd plus gas processing, with commissioning in Q2 2010 and spending of up to A$1,230m.
3 July 2008drilling progress report● Neutral
Weekly report: Santos-operated Granchio-3 (Beach 20.21%) was cased and suspended as a future McKinlay oil producer. Big Lake-88 and Deparanie-2 are drilling, and Tipton CSG wells continue.
1 July 2008other▲ Good
Media version of the hedge close-out: A$50m paid, 534 kbbl of hedges remaining, up to 90% of oil sales at spot for six months. The release also notes the BP waiver makes the North Shadwan deal look favourable. Mostly repeats the hedge announcement.
1 July 2008other▲ GoodMajor
Beach paid A$50m to close out a large part of its oil hedges from 30 June, leaving only 534 kbbl hedged, down from 1,566 kbbl at December. Up to 90% of oil sales are now exposed to spot prices for six months.
30 June 2008production update▲ GoodMajor
Preliminary FY08 Cooper/Eromanga oil production hit a record 2.0 mmb (+18%), and oil reserves rose 27% to above 15 mmb. Beach also says Arrow expects a substantial Tipton West 2P gas reserve increase in the September quarter.
30 June 2008other● Neutral
Beach told Great Artesian it will vote its 29m shares (about 15.77%) for the Drillsearch merger, absent a superior proposal. The vote is on 28 July 2008. This resolves Beach's stance on its Great Artesian holding.
27 June 2008asset acquisition disposition▲ GoodMajor
BP has waived its pre-emptive rights over Beach's US$110m purchase of 20% of North Shadwan. The deal still needs Egyptian government approval and an EGPC pre-emption waiver. Removes one hurdle noted in the 30 May announcement.
25 June 2008drilling progress report● Neutral
Weekly report: Santos-operated Big Lake-87 (Beach 20.21%) was cased and suspended as a future Hutton oil producer. Granchio-3 is drilling, and rain slowed operations early in the week.
23 June 2008security holder rights change● Neutral
Share purchase plan application form: eligible holders can buy A$1,001 to about A$5,000 of shares at A$1.43, with applications closing 18 July 2008. Administrative document for the previously announced offer.
18 June 2008joint venture update● Neutral
Great Artesian announced about 137 sq km of 3D seismic in PEL 91 (Beach 40% operator, Great Artesian 60%), part of the Modiolus 3D survey with PEL 92. It follows the dry Ballaparudda-1 and Murrippi-1 wells and aims to find new drilling targets.
18 June 2008drilling progress report▲ Good
Parsons-1 (Beach 75%) began free-flow production on 16 June at a stabilised 2,640 bopd, in line with the expected start-up. Santos-operated Mama-1 was a successful well and is being cased; Big Lake-87 is drilling.
13 June 2008security holder rights change● Neutral
Beach confirmed the 133,637,474 placement shares are now issued, with the standard compliance notice. Shares on issue are now 1,024,553,970. Administrative step completing the A$191m raising.
11 June 2008drilling progress report● Neutral
Weekly report: Santos-operated Mama-1 (Beach 20.21%) is drilling out cement at 542 m. Cowralli-9 was cased and suspended as a future gas producer, and Tipton CSG drilling continues.
6 June 2008capital raising announcement▲ GoodMajor
Beach completed its oversubscribed placement: 133,637,474 shares at A$1.43 raised A$191m. Eligible holders on the 16 June record date can buy up to A$5,000 of shares at the same price, and a 1-for-10 bonus option issue at A$2.00 follows.
6 June 2008capital raising announcement▲ Good
Media release on the completed placement: 133,637,474 shares at A$1.43 raised A$191m, to fund the three Egyptian acquisitions (about A$150m including development; potential 8 mmb net 2P in FY09). Repeats the 6 June raising news; BP pre-emption expires 28 June.
What it means for a shareholder
134m new shares at A$1.43 to raise about A$191m. That's 13% dilution: every existing holder's slice gets 13% smaller. If you held A$1,000 of shares (699 at the issue price), your slice goes from 0.0000785% to 0.0000683% of the company. To keep it you'd need 105 more shares - about A$150 at the issue price.
Create a free account to see this worked out for your own holding.
4 June 2008drilling progress report● Neutral
Weekly report: Mitchie-2 (Santos-operated, Beach 20.21%) was cased and suspended for completion as a Tirrawarra oil and Patchawarra/Toolachee gas well. Mia-1 is preparing to plug and abandon. Tipton CSG work was on wet weather standby.
4 June 2008listing compliance notice● Neutral
Beach requested a trading suspension pending announcement of the capital raising, with trading expected to resume by 6 June 2008. This is a procedural step in the placement.
2 June 2008capital raising announcement● NeutralMajor
Beach announced a roughly A$190m placement to fully fund its three Egyptian acquisitions, about A$150m including development costs, plus a share purchase plan (up to A$5,000 each) and a 1-for-10 bonus options issue at A$2.00. Other Middle East/North Africa deals are being evaluated.
2 June 2008investor presentation● Neutral
Roadshow presentation for the raising: 133.6m shares at A$1.43. It covers uses of proceeds (about A$135m for North Shadwan, A$55m for other Egypt interests) and an FY08 production estimate of 9.3 mmboe. Mostly repeats the capital raising announcement.
30 May 2008asset acquisition disposition▲ GoodMajor
Beach agreed to buy a 20% interest in the North Shadwan concession (Gulf of Suez) from Tri-Ocean for US$110m. It holds three undeveloped discoveries with about 40 million barrels of proved and probable reserves. Subject to pre-emption waivers and Egyptian approval, up to about six months.
28 May 2008drilling result▼ Bad
Weekly report: Glenaire-1 ST1 (PEP 160, Beach 50% operator) was plugged and abandoned with subcommercial oil. Mitchie-2 and Cowralli-9 (Santos-operated, Beach 20.21%) continue.
22 May 2008drilling result▲ Good
Bodalla South-19 and -20 (Beach 100%) succeeded, and Bodalla South-20 was cased as a future oil producer. Tipton West CSG produces about 20 TJ/day (Beach 40%). The report also restates the Tanzania and Basker-6 news.