BEACH PETROLEUM - BPT

[Rabbi]

Someone could be quietly accumulating?

[macduffy]

Someone could be quietly accumulating?

Perhaps. I'm more inclined to think that it's the frequent encouraging drilling news and the potential to be the first Aust producer of unconventional gas that's driving the firming SP.

.

[NZSilver]

Bought in at 1.27 a month or so ago, steady uptrend. Good production + lots of drilling so could be some good news (but no luck won't break the company like most asx oil stocks) also plenty of cash!

[Rabbi]

The word on the street is that the Chinese are running their ruler over Cooper Basin Shale gas explorers, with particular interest in Beach. Beach took off today and tested $1.50

Buying the assets of companies such as Beach, Drillsearch, Senex, and Icon, is just going to get more expensive as time goes on.

[macduffy]

BPT SP down 8.6% today.

May be reaction to the terrorist activity in Algeria - BPT has interests in Egypt.

http://www.reuters.com/article/2013/...90H12S20130118

[macduffy]

And/or it may be that the market found the drilling report on the Moonta 1 well less than exciting?

http://www.asx.com.au/asxpdf/2013011...gwlf6j25wl.pdf

[macduffy]

Yes, it seems that the market considered the gas flow from Moonta 1 to be a bit of a disappointment.

http://www.smh.com.au/business/shale...121-2d332.html

[macduffy]

Anyone else following Beach?

Here's the quarterly report to 31 December. Production down a bit but revenue forecast met, largely due to higher prices and a higher proportion of oil v gas.

On the exploration/testing front, early shale gas flows not brilliant.

http://www.asx.com.au/asxpdf/2013012...0fdrndzc2s.pdf

[Rabbi]

Anyone else following Beach?

Here's the quarterly report to 31 December. Production down a bit but revenue forecast met, largely due to higher prices and a higher proportion of oil v gas.

On the exploration/testing front, early shale gas flows not brilliant.

http://www.asx.com.au/asxpdf/2013012...0fdrndzc2s.pdf

Several tip sheets and brokers rate Beach a buy, based more on their shale gas campaign than oil revenue. Oil revenue is certainly well and truly factored into the price, and I would have expected this to increase in the last quarter, however I was disappointed.

Beach are doing a horizontal frac on one of their shale wells, can't remember which , but it could be Halifax. They need a decent flow rate to get the market excited, as last vertical frac, the gas flowed at a piddling 2mmmbe a day, which didn't interest lots of punters who dumped and headed for the hills.

I will say though, that if this takes off, you don't want to be late to the party!

[macduffy]

From the Aussie press:

Oil and gas explorer Beach Energy has signalled its projects in central Australia’s Cooper Basin could eventually generate enough shale gas to supply Sydney, as well as export.

Beach Energy managing director Reg Nelson, told ABC TV’s Inside Business program on Sunday that between 10 and 20 per cent of the 300 to 600 trillion cubic feet of gas available its Moomba development could be extracted, generating enough to supply not only Sydney but also New Zealand and other export markets.

Meanwhile, the SP has been moving upwards, closing at $1.49 on Friday.