BPT 0.35% $2.83 beach energy limited

- Strong cash flow as new discoveries come on stre

  1. 352 Posts.
    Strong cash flow as new discoveries come on stream

    Announced by:BEACH PETROLEUM NL (BPT)
    Announced on: 23/05/2002 11:44:16
    614 words
    Status: Market sensitive (Y)
    Industry Sub Group: Oil and Gas Producer (41)



    --------------------------------------------------------------------------------

    BEACH PETROLEUM NL 2002-05-23 ASX-SIGNAL-G

    HOMEX - Adelaide

    +++++++++++++++++++++++++
    Beach Petroleum NL has announced projected quarterly cash flows from
    its Victorian gas wells and the 100%-owned Bodalla oilfields.

    Speaking at the South Australian Resources & Energy Investment
    Conference in Adelaide today, Beach Petroleum's Chief Executive
    Officer, Mr Reg Nelson, said the Company expected to generate strong
    earnings over the next 12 months from its two flagship oil and gas
    operations.

    "Overall, Beach Petroleum's estimated quarterly cash flow from these
    two projects for the next financial year will be on average at least
    a net $1.0 million per month, at an assumed oil price per barrel of
    A$47," Mr Nelson said.

    "This cash flow excludes expected new contributions from the
    commencement within weeks of oil deliveries from the recent Acrasia-1
    discovery in the SA section of the Cooper Basin and to which Beach
    has a 25% entitlement," he said.

    "A major contributor to the increasing revenue streams is Beach's
    move to 100% entitlement of volumes from October 1 last year from the
    producing Bodalla oil fields in southwest Queensland."

    Mr Nelson told the Energy Conference that Beach Petroleum's
    successful move back into gas exploration, after 20 years out of the
    sector, had also been commercially successful for the Company.

    "We expect gas sales into the Victorian market from Beach's
    entitlement to the initial three Otway Basin gas discoveries
    McIntee-1, Naylor-1 and Croft-1 to contribute about $200,000 to
    $250,000 per quarter over the 2002/2003 financial year," Mr Nelson
    said.

    These gas sales commenced into Melbourne in March from one well with
    the second and third wells now being connected to the main supply
    grid.

    Mr Nelson told delegates that the historic Acrasia-1 oil well was due
    to commence commercial production next month.

    This would further build the Company's cash flows to give it a solid
    mix of producing oil and gas projects throughout Australia part of
    Beach's strategy to become one of Australia's major oil and gas
    companies.

    "The strong cash flows are also driving the momentum behind Beach's
    aggressive exploration program with 10 wells to be drilled in the
    next seven months," Mr Nelson said.

    Most of the exploration will be concentrated on finding commercial
    oil wells in the South Australian section of the Cooper/Eromanga
    Basin, he said.

    PIONEERING ROLE CONTINUES

    "South Australia presents a great opportunity for Beach," Mr Nelson
    said.

    "We already have the largest exploration acreage awarded or under
    application, of any company in South Australia, and at 54,659 square
    kilometres this is nearly four times that held in the State by
    Santos.

    "Beach is also the only company involved in exploring three
    sedimentary basins in the State the Cooper/Eromanga, Arrowie and
    Otway, reflecting the same pioneering attitude taken by the Company
    in opening up new Australian oil and gas fields 40 years ago," Mr
    Nelson said.

    "In addition, Beach is the only listed company with exploration
    interests in frontier areas in South Australia - the Arrowie Basin
    which is close to the Curnamona Craton, Stuart Shelf, Beverley and
    Honeymoon mineral provinces.

    "Through our joint venture with the CSIRO and SA Geothermal Energy,
    Beach is also a participant in a current licence to develop South
    Australia's geothermal energy prospects."

    Beach Petroleum shareholders will vote in Adelaide tomorrow morning
    on a proposed capital restructure of the Company which if successful,
    will reduce the number of Beach ordinary shares on issue from 1.27
    billion to 182.5 million Mr Nelson said he was confident the move
    would lead to a re-rating of the Company in the marketplace.

    For further information: Please contact

    Reg Nelson Beach Petroleum NL (08) 8338 2833 or 0417 840 889
    Kevin Skinner Field Business Services (08) 8232 1355 or 0414 822 631


 
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