The presentation explores Beach’s strong portfolio of assets and infrastructure, including interests in the Cooper Basin, Perth Basin, offshore Otway Basin, Bass Basin and Taranaki Basin.
In order to reduce financial year (FY) 2019–23 by up to $450 million and increase a potion of Beach’s future capex, the company will sell a 40 per cent of interest in its Otway permits to Ofer Global’s energy division, OG Energy.
The sale – with total consideration $344 million (cash) – includes interests in Otway Gas Plant; Geographe, Thylacine, Halladale, Speculant and Black Watch gas fields; and exploration targets Enterprise and Artisan.
Beach retains operatorship and a 60 per cent interest.
Beach’s market exposure is strong across four key areas: east coast gas, west coast gas, global liquids and New Zealand gas.
Beach is well positioned to take advantage of southern markets in the east coast gas market that are increasingly reliant on LNG supplies.
Its critical east coast gas infrastructure includes three basins and infrastructure hubs, a 15 per cent domestic market share, high demand for uncontracted sales gas, and exploration, appraisal and development activities in the Cooper and Otway basins to bring more gas to market.
Beach’s Waitsia asset is optimally positioned to capture the west coast market, with low unit cost gas, low complexity development and fast project execution.
The FY19 drilling program will include an increased focus on horizontal wells in up to 69 development wells and 64 exploration and appraisal wells, across the Cooper Basin Joint Venture(JV), Western Flank, South Australian Otway Basin and Victorian Otway Basin.
Cooper Basin JV
Beach will focus on the Moomba South appraisal, as well as new opportunities in old oil field Watkins/Watson North.
Victorian Otway Basin
The company will focus on nine drilling opportunities over the next for years to keep the Otway Gas Plant as full as possible until FY26.
It also plans to drill two extended reach directional wells between FY19 and FY2, to allow accelerated hook-up and early production opportunities.
Perth Basin
Operations will continue to focus on Waitsia gas commercialisation options, including opening the Kingia play and exploring the Beharra Springs Deep Prospect.
Western Flank
In the oil sector Beach will continue its Bauer field appraisal and development, while in the gas sector the Middleton Gas Facility has experienced expanded production capacity, with plans for exploration and development.