BEACH PETROLEUM - BPT

[Huang Chung]

Fun and games in the gold patch....

http://www.asx.com.au/asx/statistics...idsId=00973207

[Corporate]

Oh man. Arrows annoucement makes beach look like clowns!

[shasta]

Oh man. Arrows annoucement makes beach look like clowns!

How so?

Most of the reserves upgrade was from AOE's massive drilling program, not from Tipton West.

Yes you could argue Beach sold it too cheap, but 40% of a field that would only otherwise produce domestic gas (& Australia has low prices, unlike what eg OEL gets in Turkey) in a crowded market probably was non core.

Unless Beach wanted to join the ever growing que for the Gladstone LNG export gas projects, this was always going to be sold off.

The market wasn't valuing BPT's 40% in Tipton West anywhere near what they eventually got for it, & i'd argue the market still doesn't!

Beach don't have the capacity to develop an LNG train (nor do AOE for that matter). AOE will likely go the way of Shell

Before too long, the big boys, will consolidate all the minor players (BOW, VPE, ESG, LNG, MPO, MEL, BUL, WCL, etc) into probably 2 or 3 projects.

[bermuda]

How so?

Most of the reserves upgrade was from AOE's massive drilling program, not from Tipton West.

Yes you could argue Beach sold it too cheap, but 40% of a field that would only otherwise produce domestic gas (& Australia has low prices, unlike what eg OEL gets in Turkey) in a crowded market probably was non core.

Unless Beach wanted to join the ever growing que for the Gladstone LNG export gas projects, this was always going to be sold off.

The market wasn't valuing BPT's 40% in Tipton West anywhere near what they eventually got for it, & i'd argue the market still doesn't!

Beach don't have the capacity to develop an LNG train (nor do AOE for that matter). AOE will likely go the way of Shell

Before too long, the big boys, will consolidate all the minor players (BOW, VPE, ESG, LNG, MPO, MEL, BUL, WCL, etc) into probably 2 or 3 projects.

Hi Shasta, How are you going?

It would have to be a pretty good reason for Beach to sell bearing in mind that Nick Davies from Arrow plans to quadruple their market cap within 4 years. Perhaps Beach can do better with some very astute purchases, ITC being one of them?

But if I had my choice I would go with Arrow. Must get round to buying some.
Cheers.

[shasta]

Hi Shasta, How are you going?

It would have to be a pretty good reason for Beach to sell bearing in mind that Nick Davies from Arrow plans to quadruple their market cap within 4 years. Perhaps Beach can do better with some very astute purchases, ITC being one of them?

But if I had my choice I would go with Arrow. Must get round to buying some.
Cheers.

I'm doing ok thanks Bermuda

Beach have concluded a deal with ADE & are after DLS, now these companies are tiny, but much like BOW has done (with there CSG), they are tying up known productive areas of the Cooper basin.

I should have loaded up on AOE when they were around $2 (i posted enough about it at the time!)

AOE was my pick for the share comp $2.54 > $4+ & more to go...

My only punt on CSG has been with ESG & VPE/VPEO...

Probably should accummulate some BOW myself

[Corporate]

How so?

Most of the reserves upgrade was from AOE's massive drilling program, not from Tipton West.

Yes you could argue Beach sold it too cheap, but 40% of a field that would only otherwise produce domestic gas (& Australia has low prices, unlike what eg OEL gets in Turkey) in a crowded market probably was non core.

Unless Beach wanted to join the ever growing que for the Gladstone LNG export gas projects, this was always going to be sold off.

The market wasn't valuing BPT's 40% in Tipton West anywhere near what they eventually got for it, & i'd argue the market still doesn't!

Beach don't have the capacity to develop an LNG train (nor do AOE for that matter). AOE will likely go the way of Shell

Before too long, the big boys, will consolidate all the minor players (BOW, VPE, ESG, LNG, MPO, MEL, BUL, WCL, etc) into probably 2 or 3 projects.

Sorry Shasta - i should have been more clear. I meant they sold AOE to early.

[tricha]

I wouldnt take tricha's valuations very seriously...

-$40 is a pie in the sky figure.

-Most production is gas ~65% which achieves lower prices per boe than oil.

-Taking taxes/royaties off tricha's 'formula' probably wont even achieve the magical $40 for oil.

-Production costs will drop this further.

-Time value of money is not taken into account...

Sorry tricha, but your really ought to disclose that those figures are 'pie in the sky.'

I am waiting for your valuation wimp

Beach are getting around $80 a barrel for onshore shore and u reckon $40 profit a barrel, is not a reasonable estimate.

U have been to univerty, time u learned u know nothing.

Cooper Basin Western Flank exploration and production success continues to be a highlight for BPT. Gross oil production
from the fi elds is currently >6,000 bpd. Historical F&D costs for this asset have averaged ~A$5/bbl, opex A$10/bbl. A six well
exploration program is planned to commence in late may targeting unrisked gross volumes of ~12 mmbbls – success could net
$0.15-20/sh of value to BPT.

U

[shasta]

I am waiting for your valuation wimp

Beach are getting around $80 a barrel for onshore shore and u reckon $40 profit a barrel, is not a reasonable estimate.

U have been to univerty, time u learned u know nothing.

Cooper Basin Western Flank exploration and production success continues to be a highlight for BPT. Gross oil production
from the fi elds is currently >6,000 bpd. Historical F&D costs for this asset have averaged ~A$5/bbl, opex A$10/bbl. A six well
exploration program is planned to commence in late may targeting unrisked gross volumes of ~12 mmbbls – success could net
$0.15-20/sh of value to BPT.

U

Tricha

Congrads on 3000 posts ol son... (Most of em oil related)

BTW Beach has been getting ~$A97/bbl all year

Seems the student is on a wee holiday

[tricha]

Tricha

Congrads on 3000 posts ol son... (Most of em oil related)

BTW Beach has been getting ~$A97/bbl all year

Seems the student is on a wee holiday

Cheers for that Shasta, I was being conservative, I wonder if our friend can do a break down on profit per barrel.

[Oiler]

Tricha

Congrads on 3000 posts ol son... (Most of em oil related)

BTW Beach has been getting ~$A97/bbl all year

Seems the student is on a wee holiday

Hey Shasta do you know where Umop went
I am surprised that he hasn't responded to Tricha's and your posts by now even if he is on holiday.