BPT - Beach Energy

[pointr]

A few days now with volume around 20million and upward movement. Is this recognition of value? eg Tipton CSG asset,faith in the move to Egypt or simply a fund manager trying to pick the bottom. Any thoughts out there in 'clever people land', sorry I just remember that we as a nation put the ALP in charge of our finances.

 

[seasprite]

A few days now with volume around 20million and upward movement. Is this recognition of value? eg Tipton CSG asset,faith in the move to Egypt or simply a fund manager trying to pick the bottom. Any thoughts out there in 'clever people land', sorry I just remember that we as a nation put the ALP in charge of our finances.

only speculating here , but wouldn't surprise me if ORG was trying to get a bigger chunk of the pie. PL198(Tipton) is quite a small permit but very successful . BPT have a lot of wells that have been Cased & Suspended including Moomba , Big Lake , Mudera , Fly Lake ,Tirrawarra , Coonatie and the list goes on . Interesting times indeed , I personally was expecting more takeovers/mergers etc after 1st quarter announcements not before .

 

[oldblue]

Pretty clearly related to the CSG scene and the fight over PES. Perhaps speculation that AOE will bid for the other 40% of Tipton West that BPT hold. After all, BPT have announced a couple of weeks ago that they are seeking offers for that asset.

 

[pointr]

So a BPT / AOE transaction has occurred with BPT selling its 40% stake in Tipton West. BPT say they will use the proceeds in building the company. I personally would have preferred if they had kept away from the potential sovereign risk in the Middle East and spent our money in Australia. Another CBM development or non conventional gas in the Cooper Basin may have been a better investment than potential dry holes in Egypt. I would also like them to stop issuing shares in DRP's making my little piece of the pie smaller.

 

[oldblue]

Well it seems the market's not impressed with the price. Sold BPT down 2.5c on volume on the news. BPT has sold more than half its boe reserves for $400m but its retained those sexy prospects in Egypt, Albania, Tanzania etc!

 

[TheAbyss]

Well it seems the market's not impressed with the price. Sold BPT down 2.5c on volume on the news. BPT has sold more than half its boe reserves for $400m but its retained those sexy prospects in Egypt, Albania, Tanzania etc!

I am guessing the sell of is via CSG players who were looking for a fast profit via M&A activity.

This sale to AOE is positive to BPT however not in the sense that the CSG players would have been seeking (ie no one has bought or made a take over play for BPT) imo.

Still a very positive result for BPT in that they have chrystalised an 1100% return on their Tipton West investment.

Beach has 1,033,924,347 shares on issue. The $400m received from the sale of the Tipton assets equates to $0.387 per share.

Do they spend it all on future exploratiions, a special one off dividend payment or something else? The sale was not all in cash mind you so dont expect anything flash if they do deliver a cash payment to shareholders. I suspect they will retain all of the cash and provide a fantastic end of financial year report. A few additional incentives there which are too far into teh future to interest shorter term traders which is also a reason for todays sell off imo.

Either way you put it it isn't a reason to sell unless you are a short term trader looking for fast profits in my view.

Longer term this is a good one in my opinion.

 

[Nero64]

Either way you put it it isn't a reason to sell unless you are a short term trader looking for fast profits in my view.

Longer term this is a good one in my opinion.

Yeah that's what i was thinking. If you do the math on its last financial report its total equity is 1.2Billion, so its value is $1.20 on liquadation.

This deal will enhance its balance sheet.

However what will it do for its future for CSG? It still has the Cooper basin, but this doesn't produce like the Surat Basin.

I am interested as it was the 6th biggest CSG player in QLD and it produces oil as well.

Both oil and CSG hedge each other but still I think the company is undervalued. Not sure if it is good long term if it is lost 3/4 of its CSG prospects.

 

[oldblue]

The irony here is that BPT management have long argued that the market didn't value Tipton West sufficiently in the SP, hence an incentive to realise on the asset.
It looks like shareholders reckon that TW was worth more than AOE are paying after all!

 

[oldblue]

However what will it do for its future for CSG?

QUOTE.

It pretty well takes BPT out of CSG, at least for the meantime.
I imagine that's one of the aspects that shareholders/the market don't like and why the SP has been sold down on the news.

 

[Tiberium]

Beach acquired its 40% interest in the Tipton West Joint Venture in 2005 for A$35 million.

The sale of the asset for up to A$400 million represents a very significant return of over 11 times Beach's original investment and crystallises the inherent value of the CSG investment (which directors believe was otherwise not reflected in Beach's share price).

Beach’s Managing Director, Reg Nelson said: “This deal realises significant and immediate value from a small investment in the then nascent coal seam gas industry only a few years ago. The cash generated from what was a material, but non-core asset, leaves Beach in a strong net cash position. Beach is now exceptionally well placed to make further investments in other business areas, some of which we have already identified. In particular, we are now well positioned to take advantage of opportunities which will continue to emerge at a time when many projects suffer from undercapitalisation”.

 

[pointr]

Well they have just announced the first 'duster' in Egypt or should I say 'mudder' as it was water saturated, a distinctly negative cash flow comparison to hydrocarbon saturated. I really do hope they know what their doing taking our money overseas.

 

[gamefisherman]

Re: BPT what is happening?

Today last sale .77, on Commsec currently 193 buyers for 2,812,707 units and 323 sellers for 5,201,368. Price peaked in June 2008 and has been on a downward trend since then.

What is going on with this large cap stock. Is it heading towards a resistance level of around .70 or lower???

Any tech analysis for an amatuer would be appreciated or any other feedback. Partner has small holding at .785 with a long term view, however should she dump them now, and buy back at a lower price??

Deutsch increased shareholding recently?
Any thoughts much appreciated.

 

[babka]

Hi Game, I too, am unfortunate BPT share holder and am witnessing its price going lower and lower. I don't have any good advice to give, unfortunately. I think that the management has made a lot of wrong decisions , like going to Egypt, after Santos left, and sofar they found nothing - l dry hole!!! Maybe we should try to question the people responsible and ask "Please explain".

 

[Nero64]

It has been in a selling spiral since it sold its CSG stake to Arrow energy.

I think the CSG buyers were keeping it from not drifting lower, but even with the accumulation there was still selling pressure as oil was hitting its lows.

It is quite a big producer of oil but unfortunately it doesn't have the market favourtism of say AWE or Oil Serach.

I would like for it to use the cash it will get from Arrow to pay of its debt and maybe invest in some CSG assets. Alternatively buy back some of its 1 Billion shares the are floating around killing its share price. Its seems to be the same old same old with this company, and its about time for it to try something new. Give the share holders a bit of faith, and draw the big names in.

There is long term support at 70c, and if oil holds hopefully it won't sink below that. If oil doesn't hold or if the price SP falls below 70c then it's goodnight for now.

I think oil will get to $70US a barrel this year so it should trade in the range of 70-90c. But that is just another opinion to add to the 1000's out there.

It is a large oil producer with some recently acquired cash so it is also a possible take over target.

Partner has small holding at .785 with a long term view, however should she dump them now, and buy back at a lower price??

I think long term it is a good buy but its intrinsic value means nothing in a bear market. It's the perception that matters. I would sell it and maybe get it later if you can.

 

[gamefisherman]

hmmmmmmmmmm thanx guys for the feedback
We will wait and see what the market does with it this week, it will be interesting to see........

 

[Ludwik]

Beach is part of Petratherm test program I hear, so cross posting for feedback from Beach bums who might be up with it on geothermal:

Geothermal is promising - agreed.

The future of this mob is uncertain on some criteria, given that much of the hype is around clean and sustainable energy - the latest news is not good, meaning ethical investors may run for the hills real fast.

Planned transmission lines across Flinders Ranges adding risk of regional backlash and tainting the green image of geothermal - and wasteful exp on grid when not required.

Seeming intent re above to power Olympic Dam and Beverley Uranium Mines - what the out the window go the green and clean credentials

Test site at Paralana (help me out geologists) - would'nt drilling into a major fault line be somewhat risky in terms of damaging the geology and destabilising an area in close proximity to an aboriginal sacred hot springs ? ethical credentials out the window again.

Petrotherm may throwing the geothermal baby out with the bath water on this if they dont play their cards right - so far the scorecard is not looking good, while the fundamentals are promising it appears they are wading deeper into murkier waters.

 

[pointr]

Today BPT has launched an all scrip bid at $0.03 for Drillsearch Energy-DLS, more shares issued but at least there not increasing sovereign risk this time.

 

[Nero64]

Beach is part of Petratherm test program I hear, so cross posting for feedback from Beach bums who might be up with it on geothermal:

I don't think geothermal projections or outcomes will have an impact on the SP movements of BPT at this stage. Most oil stocks have outperformed in the past 3-4 days and this will be the main driver.

 

[Sean K]

Not sure what's going on with these guys funnymentally.

Technically looks interesting for a break one way or the other.

Watch and shoot.

 

[ShareDevil]

Interesting chart kennas. It appears BPT has a very solid floor. I'm more than convinced by the latest announcement that this undervalued stock will go the other way. They have huge upside potential in my opinion.