Any following this one. Chart & story looking good.
disc hold
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Any following this one. Chart & story looking good.
disc hold
What a coincidence, I was about to look for a thread on this one because of the chart as well :D (Actually just bought into it today)
http://bigcharts.marketwatch.com/int...w.x=0&draw.y=0
Beach Petroleum looks undervalued to me at the current price, might be a safe place to park extra cash under the current climate.
Tommy
Looks only you & I, so I will keep 'mummm' about it.
cheers
In my radar, PE ratio of 5 forcast for 2008!Bought in on Friday, after doing extensive research upon selling DrillSearch
Oil is a very important part of my portfolio.
This will no doubt help, time to re-visit oil.
Peak Oil Passnotes: Can Oil Go to $80 Again? Why Not?
By Edward Tapamor
20 Apr 2007 at 05:57 PM GMT-04:00
PARIS (ResourceInvestor.com) -- Gasoline has continued its rise on the back of more dodgy refineries, increased demand and it has kept the price of crude healthy and above the $60 per barrel range. The thing is there does not seem to be any reason in the near future for crude to fall too far.
Instead a number of bullish factors - gasoline price, company troubles, geo-politics, the weather - are readying themselves, like an unpleasant obstacle course for barrels of light sweet.
There was a 4.4 million barrel draw in gasoline inventories on the eastern seaboard and in the U.S. as a whole – the only place that really matters – gasoline rose on average by 7.4 cents per gallon, to reach a tidy $2.87 per gallon.
That means that gasoline is up over 70 cents since the start of the year and year on year we are looking at around an 11.5 per cent rise.
Currently exacerbating the problem are two major elections, France and Nigeria. The French may have companies like Total [NYSE:TOT] and Maurel et Prom [Paris:MLFMM] doing pretty well in Africa, they may have the large service company Technip but their politicians are far less promising.
The inheritor of Jacques Chirac’s mantle may well be his fellow party member Nicolas Sarkozy. Sarkozy is seen as being the man who can bring the so-called “free market” to France and revitalise its economy. It might have passed a few people by but France is still the sixth biggest economy in the world, so despite its 35 hour week and best-in-the-world national health service it is not doing too badly.
But as an Organisation for Economic Co-operation and Development (OECD) nation it certainly consumes its fair share of crude oil. The politicians of France are not going to change that or its devotion to nuclear power.
What is more important is the election in Nigeria, which is threatening to spawn even more violence. The country that could produce somewhere around 2.8 million barrels per day is currently lifting around 2.3 million barrels per day because of the long standing problems in the southern Niger delta.
But the regional and now presidential elections have thrown up more bloodshed, corruption and very little hope. Armed men have stormed polling stations and taken ballots and now the actual slips to enable voting for the presidential election have not arrived in the country 24 hours before voting is due to begin. And this is the country the U.S. is relying on to produce and increasing share of its oil.
Around the southern oil town of Port Harcourt the ruling party the People's Democratic Party of Nigeria (PDP) have won elections for the local appointees. Of course there was violence, politicians have traditionally hired various armed men to intimidate, steal and so on. What happened after the last election however was disappointed armed men who suddenly were left out of the loop, really got angry.
Already there are signs that this could happen again. Meanwhile, even before the election various candidates are saying they will contest the results, presumably if they do not win of course.
This has all the hallmarks of a bullish effect on crude do you not think? Another problem that will not go away are the troubles at BP [NYSE:BP]. This week another set of workers were rushed to hospital with sickness and eye irritation. Of course they came from the fantastic Texas City refinery facility where 15 died and 180 were injured in March 2005. This of course does
You're right I hadn't looked at the latest quarterly report but after reading it I understand why the market was disappointed.Quote:
quote:Originally posted by tricha
Imm, how long since you have looked at Beach Sec [?]
OIL increase 76 %
Gas decrease 17 %
So oil revenue was approx 53% of total for the quarter. It should have been a lot higher but their rig in the Bass Strait has been fraught with commissioning problems and has been producing at barely half the expected rate (despite management assurances that the development was 'successfully commissioned').
Although oil revenue was slightly higher than gas for the quarter gas production was 65% of total in boe. Furthermore, gas comprises 77% of BPT's 2P reserves in boe so that unless BPT makes some substantial improvements to oil reserves soon BPT will still be considered as primarily a gas producer.
SEC
[}:)]I'm afaid Sec u have got Beach horrible wrong.
Read their latest announcement today.
This is out there, this year they are going to participate in 130 wells+ @ 25% average.
Cheers [B)]
Correct me if I'm wrong Tricha, but don't BPT hold a stack of Ramelius shares [?].
RMS put out an amazing report today, with one of their drill holes returning 48m at 154 g/t au, including 1m at 1783 g/t (1.8kg) fron 148 m down hole depth [:p] [:p] [:p] [:p]
RMS share price more than doubled!
Just checked the RMS website....as at 20 September 2006, BPT held 14.74% of Ramelius. Haven't checked if this holding has since changed.
Certainly not the main game for BPT, but a very nice bonus all the same.
Huang Chung - "Just checked the RMS website....as at 20 September 2006, BPT held 14.74% of Ramelius. Haven't checked if this holding has since changed.
Certainly not the main game for BPT, but a very nice bonus all the same."
WOW that is certainly out Huang Chung, I take it u own Beach or RMS shares[?] [?]
Yes, shows how slack I am getting as far as research goes before I buy into a company these days, I did not have a clue about it[|)]
The MD Reg Nelson from Beach is on the board of RMS.
Yes a very nice bonus indeed for Beach.
13,400,000 million shares and they go up over $1.
Cheers [B)][}:)]
BPT's rise yesterday had nothing to do with their exploration plans regurgitated for this week's Melbourne Investor Conference, and everything to do with their 15% holding in Ramelius.Quote:
quote:Originally posted by tricha
Read their latest announcement today.
This is out there, this year they are going to participate in 130 wells+ @ 25% average.
Cheers [B)]
SEC
:DNot saying the Beach is going far , but must say they have been talking to the right people over the past month overseas. BPT is now due for some kind of re-rating .....this is the local word on the Terrace in Perth.
ä¤Å¤Ó¤· ¤Ð¤§ ³»¤Ñ¤§ ¤Ð¤ÅÂù ¤Ç¤§¤¡¤§ »õ ¤Ð¤§ ¤Ñ¤±¤·¤§ !
ive been in beach for awhile now
be4 the big buy out of that company
been in the red ever since
havent brought any more though
i hold avg 1.40 something
Tricha - WOW that is certainly out Huang Chung, I take it u own Beach or RMS shares[?][?]
Hi Tricha.
A friend of mine at work put me onto RMS when they were less than 20c. He holds Beach as well, and from what he tells me, RMS was spun out of BPT some years ago.
Don't currently hold either BPT or RMS, but I've profitably traded RMS a few times, including a 2hr hold during Friday's action [8D].
Dazza
you could be heading into 'new territory'[:p]
The story gets better and chart looks positive - TA comments from experts out there.
cheers
[B)]
H2 of 2007 looks very good to be on the beach.
You will all get your money back !
Thats a bit vague! BMG reaching peak production would be nice! I've held BPT for a while now. Pity I bought in at 1.38! Looking forward to good progress by BPT through the rest of 2007[^]Quote:
quote:Originally posted by ELYOB
[B)]
H2 of 2007 looks very good to be on the beach.
You will all get your money back !
Anyone got a handle on why the big dive yesterday on huge volume.[?][?][?]
I took it upon my self to re-enter at 1.24, no real bad news and oil going up.
Tricha,
I have no idea, dont follow Beach...
If your into big oilers have alook at OSH, oil search...
Oil search farm into permits with Exxon, and permits in PNG....
Now on the West Coast of America, are going to be four large oil and gas refineries...
and Exxon and OSH will pipe gas from large gas reserves at PNG to West Coast America in the future...
OSH is a great pick, watch out for this one...
[8D]
.^sc
Hi Shrewd Crude.
I presume you mean "will ship gas" ?
Don't know Tricha, but it made my ears prick up & look some more into it, & Shasta likes the looks of BPT at these levels...:DQuote:
quote:Originally posted by tricha
Anyone got a handle on why the big dive yesterday on huge volume.[?][?][?]
I took it upon my self to re-enter at 1.24, no real bad news and oil going up.
Anzon announcement on 6 July is the likely reason Tricha.
Extract:
At 7.00pm on 5 July, the single point mooring (SPM) for the Basker Spirit parted and the Basker Spirit drifted away from its location. [:0]
...it is anticipated that the producing operations will be curtailed for a number of weeks to repair the SPM.
Beach / Anzon seem to have had their fair share of trouble with this operation.
Stopped out.
Problem seemed to be quite big and volume suggest this. Bass Strait really hostile environ.
Will look again when things settle.
cheers
ps also tripped out of NAV so Fri was not good for the taste searcher
I hold BPT and am looking to buy more at this level too.
Foodee - Bass Strait really hostile environ.
I'd be wondering if this FSPO arrangement for BMG is going to continue to be troublesome. Most Bass Strait production facilities are fixed platforms.
Huang
I won't know, but too uncertain for me at this stage.
cheers
macduffy,
yes you are correct...
The 4 refineries are in planning stage and are not yet guaranteed to go ahead...
The gas would get condensed, shipped, and supplied to the hungry American market...
[8D]
.^sc
Beach is starting to look underpriced
Reg Nelson gets to preside over the release of what should be a bumper result for Beach Petroleum on Wednesday. Thanks to a full year from the Delhi acquisition, the market will be looking for something near the $90 million mark ahead of a charge to $200 million in following years.
That's why analyst Stuart Baker at Morgan Stanley slapped a $2-a-share price target on the stock early last month when Beach was looking nice and strong at $1.43 a share. That Beach has drifted back to $1.145 on Friday - it hit 99c on Black Thursday - reflects the lack of rebound for the stock since the subprime sell-off, plus some disappointment that the BMG oil project in Bass Strait needs remedial work to get to original forecast production levels.
Wednesday's profit report could be the catalyst for the rerating that Baker and others think is now due to Beach, now ranked number four in our listed oil and gas stocks behind Woodside, Santos and Oil Search. Now that Beach has arrived as a sizeable and profitable producer for the long term (20 years-plus), Nelson has cranked up its exploration portfolio.
Four high-impact wells are now slotted to be drilled in the next 15 months. The big Fermat 1 gas target offshore from Portland in Victoria (1200 petajoules in the second quarter of 2008) has been locked in for a while. The new additions (1 in New Zealand's Taranaki Basin and two in the Bass Basin) each have the potential to yield net oil reserves to Beach of more than 20 million barrels of oil.
Level 1, 25 Conyngham Street, Glenside South Australia 5065
GPO Box 175 Adelaide 5001
Telephone (618) 8338 2833
Facsimile (618) 8338 2336
Beach Petroleum Ltd
ABN 20 007 617 969
www.beachpetroleum.com.auWednesday 29 August 2007MEDIA RELEASEFOR IMMEDIATE RELEASEBeach Petroleum reports its best ever resultBeach Petroleum Limited has generated a record after tax profit of $A103.3 million for the
financial year ended 30 June 2007, more than double the previous year’s result, earned from
revenue of $A566.8 million, more than three times higher than in the year ended 30 June 2006.
The result was generated from record production of 9.4 million barrels of oil equivalent (oil and
gas combined) which was boosted by the first production from the Basker-Manta-Gummy field in
Bass Strait and the Tipton West coal seam methane project in south west Queensland.
During the financial year total sales increased seven fold to 10.55 million barrels of oil
equivalent (boe) with oil and gas sales revenue of $472 million.
Beach Petroleum will pay a 1.0 cent per share final dividend based on the record financial
results.
This adds to the 0.75 cents per share interim payment to bring the annual dividend to 1.75 cents
per share, a 16.7% increase compared to the annual dividend rate of the previous year.
The record year was highlighted by a more than doubling of proven and probable (2P) reserves
from 36.2 million barrels of oil equivalent (mmboe) to 89.6 mmboe.
At the heart of Beach Petroleum’s powerful performance during the financial year was the
Company’s admittance to theS&P/ASX 200 Index, marking a year of growth and the
Company’s transformation into a top Australian mid-cap petroleum explorer and producer and a
seven fold increase in petroleum product sales.
The rapid increase in sales volumes was primarily driven by the acquisition of the Delhi
Petroleum group of companies which gave Beach Petroleum an average 20 per cent interest in
the Cooper basin oil and gas production assets.
Also making a material impact on the results to 30 June was the sale of a 10% interest in the
BMG asset for a record $123 million.
For the second year in succession Beach Petroleum was named as a major player in Forbes
magazine’s Asia Top 200 companies “Under a Billion”.
- 2-Beach Petroleum delivered revenue of $567 million for the financial year to 30 June, compared
with $163 million for the financial year ended 30 June 2006, an increase of 248%, the Company’s
eighth consecutive yearly revenue increase.
The dividend payment is Beach Petroleum’s 12th successive dividend payment since the
Company resumed paying dividends in 2002.
Beach Petroleum Chairman, Bob Kennedy said Beach Petroleum is now recognised both
nationally and internationally as a company that has the technical ability and business acumen
to recognise opportunities both at a corporate level and in terms of exploration.
“The year began with a flush new oilfield discovery at Callawonga. The Cooper-Eromanga basin
delivered yet again.” Mr Kennedy said.
“Delhi Petroleum is delivering value to Beach Petroleum and the company is the second largest
reserves owner and producer in the Cooper-Eromanga, after Santos.”
“Add to this the rising production from our other principal assets, the Basker-Manta oilfields
offshore from Victoria and the Tipton West coal seam gas fields in eastern Queensland. The
result is strength, diversity and growth potential,”
Beach Petroleum Managing Director, Reg Nelson, said the company’s Proved and Probable (2P)
reserves at the end of the financial year was 90 million boe, compared to 36 million boe for the
previous financial year.”
“In the national context, the company ranks fourth in ASX-listed companies in terms of 2P
reserves, after Woodside Petroleum, Santos and Origin Energy.” Mr Nelson said.
“At annual production rates of around 10 million boe, the reserves to production ratio equates to
nine years,”
Mr Nelson added that the outlook for Beach production remains strong.
“Without including any new discoveries, we expect that over the next three years Beach
Petroleum’s annual production can be maintained at 10 million boe or more, based on existing
projects.” Mr Nelson said
“Although booked reserves may fluctuate at any particular reporting date, over the next three
years it is reasonable to expect that coal seam gas reserves will have increased at Tipton West,
development of the gas-condensate resource at BMG will have been sanctioned and that
considerable oil reserves will have been delineated through the Cooper Oil Program and in
Beach Petroleum’s operated areas in the Cooper-Eromanga basins.”
“Overall, it is reasonable to expect that these developments alone should help maintain
production while building the reserves base in a material sense,”
For further information please contact:Reg Nelson, Managing Director - Beach Petroleum – 08 8338 2833
Ian Howarth, Farrington National - 0407 822 319
Mark Lindh, Adelaide Equity – 0414 551 361
Agreed, I've been buying up these guys: plenty of resources and upside potential, been around a while, fairly nicely diversified and trading on low low P/E. Plus of course there's the price of oil... I think a good mid to long term prospect particularly at recent prices.
With OPEC increasing oil supply, do you think $80 oil is sustainable? I am seriously considering buying them, but I fear that if oil goes down, BPT will go down with it.
BPT has failed to impress over the last couple of trading days.
But agreed on the fact that PE is good, and their exploration portfolio is good. Do they export to Asia?
I've been monitoring this one for a while now, and it seems to be heading for a retest of the 109 support level..
Any fundamental news on why, when the price of oil hits new highs, this stock is going backwards?
Seems to be symtamatic of the whole mid-size oiler space AMR. Amazing when you consider the POO.
From what I can tell, BPT seem to be doing everything right.
Not sure if their entry into CSG and Hot Rocks might have alienated some of the O&G purists.....
Let's hope so!
I think the market is a bit concerned that BPT have sold down two 10% chunks of BMG in the last 6 months or so. Latest results wouldn't look too flash without the profits from these sales. Presumably, the proceeds were needed for the above two investments.
Disc: Long term, perennially optimistic holder of BPT.
What percentage of BMG is BPT holding after sell down and why are they selling down?
Beach now hold 30% of BMG. From memory, when announcing the second 10% sale the company said something like " sale proceeds can be more profitably applied to our other projects " or words to that effect.
I think the profit booked on that sale was AUD60m odd.
Better look up the announcements for details.
:)
Interestingly, they're selling down their stake in BMG (Oil), yet retaining a non-core holding in Ramelius Resources (Gold).......
Refer March 2008 Half Yearly update to shareholders.
10% sold to Itochu on 9August, 2007 for AUD 123m
10% sold to Sojitz Energy Aust on 29 Feb 2008 for AUD123m. Effective date will be 31 Dec 2007 when sale goes unconditional.
:)
At what price should I put some of these away? It is on my watchlist as we speak.
This one looks like its heading towards previous support levels.
Any fundamentals reasons to get into this one? +why they have invested in a junior like GOG?
To me personally the whole mid tier ASX oil/gas plays don't look very attractive apart from maybe NXS (but they're not producing for a while)...I guess its a case of one lucky strike will change everything :).
Seems to be better leverage, value and opportunities going down a tier towards the emerging producers.
I pretty much agree with that, tok3n. None of my mid level oilers are thriving at present except AWE to some degree with its 42.5% of Tui, and ARQ which looks like it may be taken over by AWE. ( As a result, ARQ sp is up, AWE is down!)
I'm not into giving advice on prices - isn't it verboten on this forum? - but I would caution anyone interested in BPT that it has a fairly long history of disappointing, shareprice-wise.
But who knows, perhaps that will change one day!
:)
I have owned BPT and HZN for a couple of years now and I would have expected better from the share prices considering what has happened to oil prices lately. However I am not a seller at present.
Q result is out. CommSec has a valuation upgrade of $1.98.
http://www.beachpetroleum.com.au/fil...8April_CBA.pdf
MEDIA RELEASE
FOR IMMEDIATE RELEASE
Ref: #049/08
INCREASED PRODUCTION AND HIGH OIL PRICES FOR
BEACH PETROLEUM’S QUARTERLY RESULTS
Beach Petroleum has posted record sales revenue of $A147.7 million in the March
quarter, up 14% from the previous quarter reflecting higher production and high oil
prices.
Oil sales revenue in the March quarter was up by 16% to $94.7 million while higher
production volumes and prices of gas and gas liquids also contributed to the results.
Total sales revenue for the nine months to March 2008 was $397 million, an increase
of 15% on the nine months to March 2007 ($345 million).
Beach Petroleum recorded an average oil price, for the nine months to March 2008,
of $A104/bbl (before taking into account hedging adjustments for the period).
In the March quarter Beach Petroleum produced 767,000 barrels of crude oil, up by
7%.
That increase was driven primarily by higher contributions from Beach’s various
Cooper/Eromanga oil projects and increased production from the BMG Project.
Beach sold a further 10% equity stake in the BMG project for A$123 million. Funds
from this sale were received on 24 April 2008.
Beach had previously sold a 10% stake in the BMG project to Itochu of Japan for the
same price.
Gas production volumes achieved by Beach in the March quarter remained steadywith higher liquid yields resulting in an increase in gas liquids production.
Total production during the quarter was 2.33 million barrels of oil equivalent, an
increase of 4% on the previous quarter.
Beach Petroleum managing director, Reg Nelson, said, “The March quarter results
continue to reflect Beach Petroleum’s growing strength in the Australian petroleum
industry.”
“Beach has continued to record significant success in the exploration program in the
western portion of the Cooper Basin and elsewhere in Australia.”
“But the company is also aiming to focus on growing the business in the international
arena.”
“Beach has a strong balance sheet and strong cash flows which it aims to utilise tocontinue to build its asset portfolio.”
Hmmm....
Not too sure if this report warrants large type.
Revenue for 9 mths is up 15% but this includes proceeds of the first 10% BMG sale. ($123m)
Without it, 9 mths revenue is down 20%.
Have I got this right?
macduffy: If the sale of the BMG stake was counted under 'Sales Revenue' then yes I think you're right. However sales revenue is sales from oil/gas, ongoing operations. The BMG sale should not be included, it should be it's own line item. If it has been then I won't be a happy farmer.
Beach don't do themselves any favours with their reporting.:confused: No wonder their share price keeps gravitating to 2 year lows.
Sales by quarter for the last three quarters have been AUD 131M, 130M, and 148M in the latest quarter. The sale of BMG does not appear to be included in these numbers. The poor price per barrel is likely linked to the Delhi hedging (800K barrels this year) which is in its last year of serious impact as it is reducing and phases out by June 2009 (see HY report).
They sold some of BMG, one assumes, because they needed the cash, as they were highly geared into the Delhi purchase that they snatched out of Santos's grasp, and the financing of this is likely to have caused some questioning.
So, bamboozled by mathematics, you and me and most punters don't realise that BPT is actually doing very well.
Pity about the dallying in sundry non oil/gas interests as they tend to hint that the organisation isn't adequately focussed.
I would like to see the $2 valuation tho - Commsec was it?
Here ya go.
http://www.beachpetroleum.com.au/fil...8April_CBA.pdf
CBD report says BPT valuation at $1.98, P/E 8x assuming they can meet forecast. Looks likely they can meet forecast with revenue up.
I assume this company is ripe for corporate activity if the sp stays at these levels? Will reduce alot of management cost if a bigger oil coy takes it out and re-structure to extract value. It just makes sense.
I bought some BPT for my portfolio.
Thanks, Bilo.
They certainly make things obscure.
On a positive note, a Fosterbroking review of PSA ( accessed from the PSA website ) estimates BPT EV/Reserve multiple favourably compared to its peers.
According to Fosters, BPT has an EV/boe of $13-30, compared to ROC $32-60, TAP $22-30, AWE $22-20 and PSA $17-70.
Thanks for posting that report but honestly who are these monkeys working at CommSec? Spelling and grammatical errors and typo's a high school kid would pick up. I mean it shouldn't make a difference but it makes me suspicious of the whole report. If they miss out letters writing the document who's to say they didn't punch in the numbers wrong somewhere on their models?
Sorry but I just finished the report and had to vent that a little bit.
Good results from Basker 6A, described by company as an " outstanding test result."
Just a pity that BPT has sold down its interest in the BMG field from 50% to 30% over the last few months!
:(
At least they still have 30% lol. Maybe thats why the market is discounting them.
disc: BPT holder
Is it me or does the BPT graph look good?
Any chartist can advice? I am not much of a chartist.
Actually...it's closer to two years.
H2so4 - as requested :cool:
BPT had been bouncing around the $1.30 SP for a while, but note the SP is now above the short term 20 day MA (bullish IMO)
Todays ann gives us a clue.... (SP closed at $1.405)
http://www.stocknessmonster.com/news...E=ASX&N=166274
Not to mention the rising price of oil (BPT has a history of increasing production & looks to be expanding its production)
I also gather the whole CSG sector has started being re-rated on the back of the British Gas approach to Origin.
BPT own 40% of the Tipton West CSG project with AOE (60%).
I did say BPT is looking good. :)
I think there maybe an upgrade for BPT. Even without upgade the valuation is around $2.00.
disc: BPT holder
Congrats to all the BPT holders who bought earlier this month around 120, you are now up 20%.
From the chart it seemed there was a lot of selling pressure which has now abated. Was there any mention of Opes prime by management?
Thanks AMR. I dont think BPT was affected by Opes.
I bought at around $1.20 based on fundamentals of higher oil price and valuation of $2.00 by CBA. I may sell some to trade and some for long term.
Bpt is a trade sell for now imho, but watch it ...we need just abit of the right news, and it will be on ............#$
Some decent stuff coming up in mere months ..... good wells , which could be supported by some future b/s announcements
Close at $1.51 today. But we have been here before followed by 18 months in the doldrums. This time I have a good feeling about the Beach.
Trading halt this morning. I'm guessing good news?
Capital raising
http://www.stocknessmonster.com/news...E=ASX&N=166512
Also new presentation out
http://www.stocknessmonster.com/news...E=ASX&N=166513
I will participate. Will have to get some options.
What price is the placement?
The placement is at $1-43 so I assume the SSP is at the same price.
The options will be issued 1 for 10 - on total holdings, not just new shares? Strike price is $2-00. 30 June 2010.
BPT sp has struggled to digest issues in the recent past so I'll withhold judgement at this stage. I like their CSM interests but not so sure about their Eqyptian and other Middle Eastern tenements and still unsure why they thought it was a good idea to sell down BMG interest in favour of foreign adventures.
Would welcome enlightenment.
:)
I am 50/50 on BPT.
I feel like selling BPT to buy AZA. Dont know yet, need to work out the numbers more. BPT seems to be in a constant trading range.
Have Beach management shot themselves in the foot again with this capital raising?
Beach would have gone up impressively today thanks to Shell's 30% purchase of Arrow's CSM assets for an upfront payment of $435M, which pays for 3P reserves of 2.79PJ and includes their 60% (1.39PJ) stake in Tipton West. Beach has the remaining 40% stake in Tipton West which based on equivalent 3P reserves and price paid by Shell is worth 54cps pre capital raising. Recent valuations by brokers valued Beach's stake in Tipton West from 10 - 20cps.
To think that Beach today has had its asset valuation effectively increase by at least 30cps and at the same time looks to have done a capital raising at 24cps discount to the prevailing price is shocking timing.
I have seen more often than not the market price drop to the SPP price within weeks of a capital raising, no matter how small or large the discount. Crying shame really because Beach was heading for $2. Load up more around $1.43.
SEC
Sold on Friday at $1.70 now waiting for the figures to decide if I come back in or go somewhere else. Seems to me there was some leakage of news on friday
As a non-BPT holder I'll be looking seriously at the oppies when the heads fall back slightly. Maybe the management is the cause of BPT's trading range while the price of oil skyrockets. Aren't they meant to be swimming in cash right now?
One would think so with $246m within the last 6 or so months from the sale of 20% of BMG, plus the record prices being achieved for their oil and gas, and now with the proceeds of the pending placement and share purchase plan.
They also have a big decision to make about their 40% interest ( with AOE ) in the Tipton CSM field; whether to exercise their pre-emptive rights, or join the AOE/Shell partnership ( or possibly sell out? ). But they also seem to have big plans for expansion further afield as witnessed by recent purchases.
The insiders who purchased in advance of the capital raising announcement must be feeling a bit sick at the moment; but one can't really understand why the share price has sunk so quickly below $1.43. After all, the fund raising announcement had no news about projects; the dilution is fairly minor, and the price rather high.
As a relative newbie to small Australian oil companies, would someone mind telling me if declines subsequent to non-distress capital raising are ususal? Or is this merely a delayed reaction to possibly overpaying for middle east assets.
Finally, do South Australian oilers have a reasonable history of purchasing foreign assets, or are they much better at finding the stuff themselves. Last time I met a South Australian on the expansion path - the infamous Zipperneck, Tim Marcus-Clark, it all ended rather badly.
BPT seems to be stuck in the "twilight" trading range of $110-$170. I dont kown what to make of it apart from using it as a guide to trade it.
I sold at $1.70 just before capital raising. Did not like the proposed purchases with the capital raising money. Before this it was a reasonably conservative oiler, in mainly stable countries. Now it is getting into more volatile areas of the world and seemly more speculative. I have had a very tiny dabble at $1.36 but not really interested in buying more.
That was good selling at $1-70 Possum!
History is repeating itself with BPT playing true to form and unable to maintain its SP after another issue. Only this time its dropped before the issue closes!
I won't be taking any up and will look to sell if they ever spike up. Would have to be the big disappointment amongst my modest Aussie oils.
Hi NJg
I don't think you can generalise too much in these instances. A lot depends on timing, market sentiment and individual company issues.
As you can tell from my previous post, I'm rather disillusioned with BPT. They have sold down their interest in the BMG project from 50% to 30%, reaping $246m in the process, - which may or may not be a smart move - and they have used that plus the proceeds from the placement and now the SPP ( if anybody subscribes!) to further their foreign interests - Turkey, Albania, Spain ( from memory) and now Egypt.
I don't think they have adequate management strength to manage all this properly when they have plenty of irons in the Australian fire, especially small but potentially valuable Coal Seam Methane interests ( Tipton West for starters ).
I may be completely wrong with this but BPT has a bit of a track record in failing to produce the goods SP-wise. Because of this, I won't be adding to my stake but will hold for a spike in price, hopefully on some CSM news.
Mac Duffy do not be in to much of a hurray to sell remember there is a freebie involved as well even if you do not take up SPP & tax loss selling and repurchasing goes on in Australia does not usually settle down untill mid July
Beach have announced that BP will not exercise its pre-emptive right in respect of North Shadwan and that the purchase ( By Beach) will therefore proceed.
This is supposedly good news!
If it was any good surely BP would have taken up its pre-emptive rights. Are Beach trying to grow at any cost. Oil prices going up share price going down.
I am trying to be objective as possible . I do alot of research over many weeks by phoning companies , and try to understand what they may or may not achieve . Beach is a massive complex machine which i have learnt alot about . They certainly know what they are about and management is ok . They have exciting multi-strategies in place which i believe a lot of negative posters fail to analyse. From Qld to Egypt , BPT have much going on and H2 08 is just going to amaze......this process with an shareholders issue is going to happen as these guys at BPT are not and do not plan to look like idiots as some posters on various boards like to infer ....................Euroz have got the latest $xxxx.xx on this in a report just out today in an update , and they are close to the action {target short term now $2.02}
It would be a shame not to get onboard at $1.32.......... anyway that is the game ....
Hold BPT
dyor , and win ...
Hi ELYOB
It's good to have another view on BPT but the complexity of their interests is one of my concerns and the massive number of shares on issue is another - now well over a billion and more to come if anyone takes up the SPP - why they would when the shares can be bought on market 11c lower I can't imagine.
It looks very much to me a case of taking a lot of small bets on several horses in the same race. I can't see where they have a competitive advantage in places as diverse as Eqypt, Albania, Turkey,Tanzania etc. Their expertise surely is in Australia, particularly with the newly aroused interest in gas and coal seam methane gas. The distraction to management of having a lot of relatively small and diverse interests to manage is also an issue when there is a bigger stake closer to home. For example, they still have 30% of BMG to look after and maximise returns from, amongst other local producing assets.
I'm not sure I know what you mean by the " shareholders' plan is going to happen". Yes, we all have our forms but unless there is an upturn in the SP there won't be many shares taken up at $1-43. The issue isn't underwritten but I doubt that the co will be too concerned, the larger amount having been raised by the private placement.
So I don't expect to be taking up any more shares. BPT have a bit of a track record of raising new capital, only to see the SP fall back, so I'll be wanting a bit more solid evidence of progress before I consider increasing my stake.
;)
It should be noted that Euroz Securities Ltd was one of the Joint Lead Managers for the recent share placement.
They obviously have a strong incentive to paint an optimistic picture.
MacDuffy,
I wouldnt worry about shares on issue 1B size . Projects are growing and these can move BPTs SP with any "huge" expansion in them . I would advise you go and research the various projects and see which one will imminently expand , and support the current share plan . This might just make you some money.
Also, we know the beach frontage can be sold off at the right price . This has been demonstrated with BMG . Now if a huge offer were to come along for frontage huge in the making ....
dyor
"....and support the current share plan."
?? Not very likely when the shares can be bought on market for 11c less!
3,496 shares via the SPP = $4,999-28.
3,496 shares at $1-32 on market = $4,614-72 ( plus brokerage).
Of course, the market price may not last but meantime that would be the way to go for those who think BPT is a good buy.
;)
Beach has paid out $50m to buy out a big chunk of its hedging, leaving about 90% of oil production to sell at market prices. They figure that the PoO is likely to stay high or go higher. I go along with that.
They also talk about the possibility of buying further interests in Egypt. I'm not so sure about that!
:(
Hi doc
All BPT's overseas adventures are farm-ins - 20% North Shadwan (Egypt), 25% Spain, 25% Albania, 25% North Qaran, ?% Tanzania?
I'm not a fan of this dispersion of effort when there is so much opportunity closer to home but, as usual you'll have to assess the risks for yourself.
;)
BPt is going international in more ways than one . It has the international properties in above [eg: Egypt, etc.,.], as well as favouring placement recently to international instos . Local instos etc.,. missed out badly recently in the issue , only getting 1:10 of what they thought was their god given right .....maybe this is a current sore point locally with the instos , but they are the ones who have been playing with the share price and they are going to lose.
When the button gets pushed the new holders from o/s will make a difference.
Sooooo....
BPT paid out $50m to close their hedge at the top of the oil price and not they are unhedged with a dropping oil price? Hmmm.. no wonder the market is punishing their sp. :confused:
Beach still a good company with the fall in SP ....the market is stuffed atm ; but oil price is US136 after last nights fall ......all bets with every stock is off for the time being .
Investors that took the $1.43 placement of shares will not be happy with the sp now at $1.15.
It is those international investors in the recent issue who are pushing the SP down .....this is a game ..... no one can match them ......when they are ready or news changes the rules ....they will have to execute the grand plan and suck hard .....the quarterly may well change the game . The H2 08 activities certainly will !
Can someone enlighten me on today's substantial holder notice on leveraged position? Is this stock someone has leveraged or someone borrowing stock to short? I am abit confused on this announcement.
To buy or not to buy? BPT is at a critical junction right now where one technician will say a double top has been confirmed while another will call this a bounce off resistance with a bullish divergence (OBV).
To this untrained fundamentalist the overseas acquisitions don't seem too bad...gives BPT a bit more of a speculative elephant hunting tinge.
Will watch this very carefully tomorrow. Either it will be the best entry point in years or a very foolish TA entry.
http://www.sharetrader.co.nz/picture...5&pictureid=34