Beach Petroleum Limited (ASX:BPT)
Adelaide, July 22, 2009 AEST (ABN Newswire) - Beach Petroleum Limited (ASX:BPT)(PINK:BEPTF) is in a powerful position with zero corporate debt and a strong balance sheet after generating record annual sales revenue of A$581 million in the year to 30 June 2009.
Although June quarter sales were slightly lower at A$118 million, full year oil and gas sales of A$581 million is a record for Beach.
In addition to record oil and gas sales revenue, other revenue has also been boosted by the sale of Beach's equity in the Tipton West project to Arrow Energy Limited from which Beach received A$260 million in cash and 20.6 million shares in Arrow Energy. Beach may also receive further payments of up to A$70 million depending on reserve upgrades at Tipton West and the future supply of gas by Arrow Energy to an LNG project.
At 30 June 2009, Beach had sold 8 million of the Arrow Energy shares at an average price of A$3.84/share, yielding proceeds of A$30.7 million before tax and transaction costs.
Total production by Beach in the June quarter was 2.22 million barrels of oil equivalent (boe) contributing to record full year production of 9.6 million boe.
Beach's annual oil production of 3.3 million barrels is also a record.
Beach Petroleum Managing Director, Mr Reg Nelson, said, "Beach is now in the best shape it has ever been in, both financially and from a production perspective."
"The company is debt free, generating record production and revenue and with a powerful cash position it is very well positioned to continue the growth which shareholders, quite rightly, have come to expect."
"The present market circumstances and our strong financial position offers Beach a wide range of opportunities for growth. We will continue to be one of Australia's most active explorers, seeking to continue our record of growth by discovery of new petroleum reserves."
"However, we will also continue to look at corporate opportunities as they arise. Beach has been very successful in the corporate area over many years by being prepared to move early and be decisive in a wide range of transactions."
"The Delhi Petroleum transaction in 2006 has been hugely successful for Beach. We have now repaid all the debt associated with that deal but will benefit from the increased production revenue from the assets for decades to come."
"We look forward to continuing to be among Australia's most active petroleum sector participants," Mr Nelson said.
Beach has continued its exploration success on the highly productive western flank of the Cooper basin with two oil discoveries, Perlubie South-1 and Butlers-1 in PEL 92, where Beach holds a 75% equity share.
Both wells have been completed for oil production and are expected to commence production in the next quarter.
Corporate
In early May, Beach announced a conditional takeover for Drillsearch Energy Limited, on the basis of 1 Beach share for 27 Drillsearch shares. Beach's Bidder's Statement was lodged with the ASX on 15 May 2009 and dispatched to Drillsearch shareholders on 29 May 2009. On 3 July 2009 Beach waived all conditions associated with the offer and extended the offer period to 14 August 2009. At 17 July Beach had received acceptances which increased its relevant interest in Drillsearch to 19.36%.
QUARTERLY REPORT 30 JUNE 2009
Highlights include:
- Production of 2.2 million boe for the quarter, contributing to record annual production and sales revenue (9.6 million boe and A$581 million).
- The sale of Beach's equity in the Tipton West project to Arrow Energy Limited was completed with Beach receiving A$260 million in cash and being issued 20,613,699 shares in Arrow Energy Limited on 20 May 2009.
- On 30 June Beach repaid its remaining debt associated with the 2006 acquisition of the Delhi group of companies with the Beach Group now debt free.
- Two new oil discoveries on the western flank of the Cooper Basin.
For Beach Petroleum Limited's Quarterly Activities Report for June 2009, please click the link below:
http://www.abnnewswire.net/media/en/docs/61080-ASX-BPT-Quarterly-Report-173037.pdf
Contact
Reg Nelson
Beach Petroleum
Tel: +61-8-8338-2833
Hector Gordon
Beach Petroleum
Tel: +61-8-8338-2833
Ian Howarth
Collins Street Media
Tel: +61-3-9223-2465
Mark Lindh
Adelaide Equity
Mob: +61-414-551-361
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