BPT - Beach Energy

[pointr]

Hi all BPT holders and followers. i thought it was interest having held BPT for at least a year that yesterday BPT did not follow its regular pattern of drilling / progress reports. Does this mean i) they had nothing to report
ii) they were out celebrating the rising SP or is their attention on other matters corporate apart from drilling. merely my . I last looked at 1018 this morning and a drilling report still wasn't up. Disregard this post the minute one is

 

[vishalt]

They had a progress report today and acquired some interests in Egypt so there ya go.

I'd expect a little correction for beach, possibly down to $1.40 - $1.45, there has to be a correction in oil and oil stocks in the medium term.

 

[ShareDevil]

looks like it's sitting up above the 150 mark... hmm. The old girl has been good to me so far... here's to more good news!!

 

[mime]

Wow nice jump today($0.12 or 7 or so %)! Hope Monday holds the same fortunes. I think this stock is a winner.

 

[vishalt]

Wow nice jump today($0.12 or 7 or so %)! Hope Monday holds the same fortunes. I think this stock is a winner.

Absolutely, and on a day when oil slumped. GOGO BEACH!!

If you read the announcement today it bought a 20% interest in some Egyptian oilfield where Beach gets 40 million barrels of oil. Beach produces around 10 million a year, thats an added 4 years of reserves to the 9 it has (ofcourse as production ramps up reserves will fall) - but at the moment, Beach has more than a decade of oil to pump out.

 

[Tysonboss1]

What I like bout beach is that it is exploring to build reserves of conventional oil and gas, But t the say time it is not scared to branch out into other areas such as coal seam methane and geothermal, which will give it longevity into the future and diversify it's income streams.

at the end of the day that is what business is all about, securing and growing income streams.

 

[56gsa]

trading halt due to capital raising - not sure of others experience with SPP but I've seen the stock go into something of a hiatus while this is taking place, sometimes struggle to move about the SPP level, but then when it does it can often increase quite dramatically?? (Personally, I'm a bit concerned about POO level being sustained so may need to be cautious on the timing of BPTs' SPP)

Placement, SPP and bonus options issue
Beach intends to raise approximately A$190 million via a placement of new ordinary shares to institutional and sophisticated retail investors. The placement is expected to be completed by Thursday 12 June following investor presentations to international and domestic institutions. New shares issued under the placement will rank equally with existing shares. Beach will also offer eligible shareholders the opportunity to subscribe for up to A$5,000 worth of shares through a non-underwritten share purchase plan (“SPP”). Pricing of the SPP will be the same as the pricing of the placement.

In addition, all new and existing eligible shareholders will be entitled to participate in a 1 for 10 bonus options issue, with an exercise price of A$2.00 per share and expiry of 30 June 2010.

Further details regarding the SPP and the bonus options issue will be announced following the conclusion of the placement.

 

[mime]

?? Your quote says the options can be executed at $2 but the stock price isn't anywhere near that. Can someone please explain this to me?

 

[oldblue]

BPT clearly have some big spending plans, needing to raise additional capital at this time on top of the $246m received from the sale of 20% of BMG during the last six months or so plus revenues from record prices for oil and gas.
Let's hope it's money well spent!

 

[oldblue]

?? Your quote says the options can be executed at $2 but the stock price isn't anywhere near that. Can someone please explain this to me?

It's quite normal for "free" options to be issued at a strike price in excess of current sp.
Shows confidence on the part of management!

 

[vishalt]

I think this is a very good announcement.

It'll dilute the value of existing shareholders a bit but who cares, many companies use capital raisings and this is for a good purpose - not replinishing the balance sheet and it'll ensure Beach maintains its very low 10% gearing ratio.

The Egyptian oilfield costs US$110 million and has 40 million barrels of oil.

Lets say oil averages US$130 million a barrel for the next few years.

US$130 x 40 million = US$520/A$545 million in revenue.

If oil is $200 barrel on average (entirely possible) that will be nearly $1 billion in revenue for beach.

Labor in Egypt is cheap so Beach will get a huge boost to reserves and profits when this project gets going (it is still waiting approval).

I'm wondering what the shares will open at and if the big investors in this company like the plan.

Lets not forget the bonus exploration prospects the company will get and perhaps some JV's along the way and also Beach's ongoing existing projects and coal-seam gas reserves.

GOGO BEACH ! I'm very happy with this investment.

 

[oldblue]

Hi Vishalt.
Not sure about your maths there. The presentation by Beach says USD110m for 20% from Tri-Ocean Energy for 3 undeveloped oil discoveries with 2P reserves of ~40mmb.
It looks like you have attributed the full 40mmb to BPT?
And assumed that all of the 2P reserves prove to be recoverable?

 

[b4subi05]

Day all,

Interesting announcement today Beach, I too am a long term investor in this one. I'm not sure where the share price will head short term given this latest announcement, I'm guessing a short term weakness.

Question I have is if anyone thinks the AOE/SHELL partnership will have a positive effect on beach considering its in partnership with AOE on the Queensland CSG project?

 

[vishalt]

Hi Vishalt.
Not sure about your maths there. The presentation by Beach says USD110m for 20% from Tri-Ocean Energy for 3 undeveloped oil discoveries with 2P reserves of ~40mmb.
It looks like you have attributed the full 40mmb to BPT?
And assumed that all of the 2P reserves prove to be recoverable?

Ohhh d'oh my bad!

The way I'm reading the press release language is confusing me lol.

I thought they mean the concession that Beach acquired had 40 million barrels.

 

[urgalzmine]

Day all,

Interesting announcement today Beach, I too am a long term investor in this one. I'm not sure where the share price will head short term given this latest announcement, I'm guessing a short term weakness.

Question I have is if anyone thinks the AOE/SHELL partnership will have a positive effect on beach considering its in partnership with AOE on the Queensland CSG project?

Spot on dude, if you read smart investor Jan 2008 edition from Graeme Anderson he indicates that beach is going in to CSG,

BPT have many projects underway with a market cap of $1billion its not a small fry

 

[Tysonboss1]

?? Your quote says the options can be executed at $2 but the stock price isn't anywhere near that. Can someone please explain this to me?

If you look at the option offer the option doesn't expire till 2010,... If you hold the option you can purchase shares for $2 in 2010 when the share price might have moved to $3 by then,...

 

[oldblue]

Day all,

Interesting announcement today Beach, I too am a long term investor in this one. I'm not sure where the share price will head short term given this latest announcement, I'm guessing a short term weakness.

Question I have is if anyone thinks the AOE/SHELL partnership will have a positive effect on beach considering its in partnership with AOE on the Queensland CSG project?

Beach spokesman is reported as saying that they now have to consider taking up the pre-emptive rights attached to their 40% in the AOE/BPT interests, or join in the partnership with Shell. My guess is they will opt for the latter - unless, of course, someone wants to buy them out at an attractive price!

 

[jinx888]

Ive been with these guys since 2002 when the stock was 28c. This is the 3rd bonus option they have issued since then. From my experience management usually issues bonus options when they think BPT is undervalued. The stock price usually moves up after the bonus options. If i can remember clearly the first one was 60cents and which later so the stock price rise rapidly. The second one was at $1.xx. I have confidence in Reg Nelson. Altho, im not as bullish on the price of oil. Most valuations still use long term average of about $60-$75 a barrel. Still at current oil prices. BPT still has some value. Im just wondering why they are still on halt after already announcing. Unless they have more news coming out.

 

[mime]

Hey nice work at $0.28, I got mine at $0.44 or so. I'm hoping it grows into the next OSH and optimistically the next WPL

 

[oldblue]

Ive been with these guys since 2002 when the stock was 28c. This is the 3rd bonus option they have issued since then. From my experience management usually issues bonus options when they think BPT is undervalued. The stock price usually moves up after the bonus options. If i can remember clearly the first one was 60cents and which later so the stock price rise rapidly. The second one was at $1.xx. I have confidence in Reg Nelson. Altho, im not as bullish on the price of oil. Most valuations still use long term average of about $60-$75 a barrel. Still at current oil prices. BPT still has some value. Im just wondering why they are still on halt after already announcing. Unless they have more news coming out.

The trading halt continues until the book-build for the private placement is completed. That will be the next announcement but there shouldn't be any surprises there - the institutions will jump at the chance to buy BPT at $1-43.