BEACH PETROLEUM - BPT

[Rabbi]

A farm out to Chevron has solved Beach problems in respect of Capex. for it's shale campaign, while Beach is still retaining a significant interest. No doubt Chevron will bring some expertise and experience to the party.
Hard to say how far this thing will run but I note that Beach is treading water as far as conventional production is concerned, although the new pipe lines may help to get them over the line.

[NZSilver]

Anyone following this one, I held for a short period about a year ago and made a good profit, I see it's dropped to $1.15 (30%) since January. It seems they have had good results drilling with higher hit rates. I have strayed away from oil and gas / mining sectors, but I would be interested in what people think and if anyone has done some research/been keeping an eye on BPT.

[macduffy]

It seems that the market is over the initial burst of excitement about BPT and its shale gas and the realisation has sunk in that there's still a long way to go to prove profitability there. The abundance of gas being discovered - and produced - in the USA is also a factor as pressure on the international price of LNG increases.

[NZSilver]

It seems that the market is over the initial burst of excitement about BPT and its shale gas and the realisation has sunk in that there's still a long way to go to prove profitability there. The abundance of gas being discovered - and produced - in the USA is also a factor as pressure on the international price of LNG increases.

Thanks boss

[macduffy]

From the AFR:

Beach Energy's move to beef up its already bulging balance sheet has caught the attention of some investors who could see the oil and gas player making a move on smaller rivals Drillsearch or Senex Energy. The $1.4 billion Beach is topping up a $150 million debt facility through ANZ Banking Group and Commonwealth Bank of Australia, increasing the loan to $320 million on three- and five-year terms.

It comes as the company already had $343 million cash on its balance sheet at December 31 and received another $US190 million cash upfront from a deal with Chevron in February.

At the same time, analysts expect it would have burnt through only $43 million cash in the 2013 financial year.

It means Beach Energy could have upwards of $500 million in cash when it reports full-year numbers next month, before it draws down any new debt. That makes the recent capital raising all the more curious. The company says its credit-growth hungry bankers offered the increased package and there was no reason not to take the funds. It's also possible Beach Energy may be preparing to take out $150 million of the company's convertible notes due next year.

But it is hard to overlook the possibility Beach may be building a war chest for potential acquisitions. Beach has been an active asset trader in recent years and there is logic it joining up with neighbour Senex or Drillsearch. It already owns a small stake in Drillsearch and the pair have a number of joint ventures.

The question for Beach is whether Drillsearch and Senex represent good value at a time when the Australian dollar is falling. The falling dollar should be good news for Beach's oil production revenue, and may discourage ideas of offshore expansion.

[Corporate]

This is very interesting. Especially because COE and DLS also increased their facilities.

I think DLS would be the best fit for BPT.

[NZSilver]

What are these guys cost of production per barrel? hard to find anywhere, would also be interested in WPL (woodside) and STO (santos) production costs, prob a good time to buy some low cost producers

[macduffy]

According to the company -BPT - it's $A25 pb.

http://www.sbs.com.au/news/article/2...bout-oil-price

[macduffy]

It's a while since anyone on this side of the Tasman showed interest in Beach - now known as Beach Energy. Meanwhile, speculation that they are vying for Shell's NZ assets.

http://www.theaustralian.com.au/busi...adb68a3878cc66

Disc: I hold the rump of a holding, courtesy of leftovers from a dividend investment scheme!

[NZSilver]

good run last few months, still worth looking at? thoughts?