Beach Energy to Produce Up to 9.4 MMboe, Spend $470M in Capex in FY 2015

Beach Energy Limited (Beach), an Australian oil and gas company, reported Tuesday the following guidance range in relation to the financial year 2015 (FY15):

  • Production – 8.6 to 9.4 million barrels of oil equivalent (MMboe)
  • Capital expenditure – $422.77 to $469.75 million (AUD 450 to AUD 500 million)

The above guidance has resulted from the annual strategy and budget review process, which takes into consideration factors such as business and strategic objectives, operating performance and the timing of new developments.

The guidance does not include the potential impact of weather and other delays, potential acquisitions, divestments, farm-ins, farm-outs or expenditure for the upgrade of the corporate office.


The FY15 oil and gas production guidance range of 8.6 to 9.4 MMboe reflects the following:

  • the timing of new oil facilities coming on-line on the Western Flank
  • the level of natural decline in the Bauer oil field
  • the timing of ramp up production associated with the SACB JV conventional infill gas development drilling; and
  • the outcomes of continued exploration, appraisal and development activities within the broader portfolio

Capital expenditure

The FY15 capital expenditure guidance range of $422.77 to $469.75 million (AUD 450 to AUD 500 million), which excludes the upgrade of the corporate office, is split between development and exploration as follows:

  • Development expenditure of $314.76 - $347.65 million (AUD 335 - AUD 370 million):
    • Cooper Basin, non-SACB JV – $51.67 - $56.37 million (AUD 55 - AUD 60 million)
    • Cooper Basin, SACB JV and SWQ JVs – $253.69 - $281.88 million (AUD 270 - AUD 300 million)
    • International – $9.39 million (AUD 10 million)
  • Exploration expenditure of $108.05 - $122.14 million (AUD 115 - AUD 130 million):
    • Cooper Basin, non-SACB JV – $37.58 - $42.28 million (AUD 40 - AUD 45 million)
    • Cooper Basin, SACB JV and SWQ JVs – $4.69 million (AUD 5 million)
    • Unconventional – $46.99 - $51.67 million(AUD 50 - AUD 55 million)
    • International – $18.79 - $23.48 million (AUD 20 - AUD 25 million)

As a result of expected operating cash flow, and in conjunction with a cash balance at June 30 of $386.17 million (AUD 411 million) and a secured $281.85 million (AUD 300 million) debt facility, Beach anticipates it will be able to fund its FY15 capital expenditure activities in full.


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