BPT 2.48% $1.18 beach energy limited

cash and upside

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    Beach Petroleum - Mid Tier oil producer delivers cash and upside
    by Proactive Investors

    Beach Petroleum has achieved the highest ever quarterly revenue in the period to 30 September 2008 on surging oil prices and and higher oil shipments. Total oil and gas revenue increased to a record $182.8 million in the first three months of 2008/09 - up 9% on preceding June quarter and 53% higher than in the previous corresponding September quarter.

    Average realised oil price during the three months was A$139/bbl - up 3% on the June 2008 quarter.

    The lower AUD/US dollar exchange rate has provided some protection to Beach Petroleum given the oil price decline in the current quarter, so oil prices realised will not fall as much as US dollar oil price falls.

    Beach Petroleum Managing Director Reg Nelson said, “Beach also takes some comfort from the fact that a significant portion of our production (around 60%) is gas, contributing some 40% of the Company’s revenue - and gas prices are stable in long term contracts,” he said.

    Total production edged up 2% to 2,463 thousand barrels of oil equivalent (kboe), including a 4% increase in Beach’s oil production to 754,000 barrels – mainly due to higher production from the onshore Cooper and Eromanga Basins.

    Surging coal seam gas reserves

    There was a further significant increase in gas reserves in the Tipton West Field in Queensland’s onshore Surat Basin (Beach 40%). Proven and Probable Reserves (2P) increased by 382% to approximately 1,107 petajoules (PJ) as of 30 June compared to 12 months earlier. Beach’s 40% share of Tipton West 2P reserves has risen to 443 PJ's or 76 million barrels of oil equivalent.

    Comment by Andrew McCrea

    We tend to the opinion that Beach Petroleum is somewhat undervalued as a mid-tier Australian oil and gas producer at current share price < $1.07. How much is dependent on valuation of Beach Petroleum's Coal Seam Gas (CSG) reserves. On our present case, we believe Beach Petroleum could be worth north of $1.50 - based on recent CSG deals. There is also potential upside on Beach Petroleum's higher risk/return Egyptian 20 per cent owned undeveloped oil discoveries. This area is renowned for high yield per barrel per square foot. While oil prices have fallen reducing average oil price realised, we expect oil prices to remain robust on a 18-24 month time-frame. Beach Petroleum also has a wide open share register.
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Mkt cap ! $2.691B
Open High Low Value Volume
$1.22 $1.23 $1.18 $12.06M 10.09M

Buyers (Bids)

No. Vol. Price($)
6 352131 $1.18

Sellers (Offers)

Price($) Vol. No.
$1.19 181255 3
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Last trade - 16.10pm 30/10/2020 (20 minute delay) ?
-0.030 ( 2.32 %)
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$1.22 $1.23 $1.19 4379763
Last updated 15.59pm 30/10/2020 (live) ?
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