melbourne mining club 3 october 2013

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Melbourne Mining Club3 October 2013

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The benefits of natural gas (CH4)

• High hydrogen, hence cleaner burning than coal

• Reduced water demand• Able to provide flexibility to cover

base and peak loads• Potential to underpin the

development of a new and scalable petrochemical industry (explosives, fertilisers etc)

• Possibility of building a new era for high purity diesel and jet fuel via gas to liquids

• ….but, Eastern Australia is short gas

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2002 – Australian east coast gas outlook

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Today – Australian east coast gas outlook

Existing domestic east coast contracts

Source: Core Energy Group, July 2012

Projected east coast total demand

Gladstone LNG facilities

Uncontracted gas

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Reg Sprigg - Founder of Beach Energy

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Company overview

• ASX 100 listed oil and gas exploration and production company

• Market capitalisation of ~A$1.8 billion

• Largest Cooper Basin oil producer

• Sixth largest Australian oil producer

• Strong balance sheet with cash of $348 million at 30 June 2013

• Undrawn secured debt facility of A$320 million

• FY13 – record underlying NPAT of $141 million, record total revenue of $700 million

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Cooper Basin acreage

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NTNG permits and wells

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Major basins of Australia

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Key Australian pipeline network

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Key basins well served by infrastructure

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What needs to happen next….

• Firm and far reaching policies need to be set

• Regulation needs to be streamlined and harmonised

• Scientific principles by principled scientists

• National backing needed for all LNG projects