BPT - Beach Energy

[piersha1]

September is the last post that we have had about this company.
I as a young inexperienced trader don't really have to much information or knowledge to feel game enough to post anything on this forum, I merely just look, watch and listen to what you people say.
In saying that, lets get the ball rolling on what is a great company with great future prospects and (up until yesterday) was on a steady uptrend...
Why the sudden massive drop in price from, yes a mediocre, but still, positive announcement...

 

[DB008]

Why the sudden massive drop in price from, yes a mediocre, but still, positive announcement...

Could just be profit taking? People did buy in around to $1 mark. To make ~40% in a few months is all bad...

 

[oldblue]

The market thinks that the flow test on the Moonta 1 shale gas well was a bit disappointing. The economics of shale gas extraction in Aust is still to be established and BPT has a fair bit riding on a positive outcome.

The terrorist business in North Africa might also be an influence on the SP. BPT has an interest in the North Shadwan field in Egypt, operated by BP.

 

[So_Cynical]

The market thinks that the flow test on the Moonta 1 shale gas well was a bit disappointing. The economics of shale gas extraction in Aust is still to be established and BPT has a fair bit riding on a positive outcome.

That's the conclusion i came to as well, its the only negative i could find in the ICN ann released the day of the drop..its got to be a bit of a given that the gas coming from those deep shale wells will be expensive...did you see the fracking setup in the ICN ann...big dollars for gear like that in the middle of nowhere.

 

[So_Cynical]

The big news....drum roll......Chevron is in.

BPT was the biggest mover in the ASX100 today on the back of the Chevron announcement.

http://www.beachenergy.com.au/IRM/C...295/BeachfarmoutofexplorationacreagetoChevron

Chevron will pay 349 million to farm in to Beaches Nappamerri Trough Shale gas tenements...ending up with 60% of BPT's stake in the project.

Chevron.

 

[Not Rene]

Here is a more detailed web article from bloomberg

http://www.bloomberg.com/news/2013-...hResults+(shale+-+Yahoo!+News+Search+Results)

Hope this brings us back to the giddy heights of $1.77, I need this after my recent foray into Las Vegas

 

[DB008]

Some good news...

http://www.beachenergy.com.au/IRM/Company/ShowPage.aspx/PDFs/2877-89796368/Halifax1VerticalWellFlowingBackGas

 

[notting]

Some good news...

Jesus, I thought the good news was a few days ago -Beach
will transfer up to 60% of its interests
in PEL 218 (Beach 100%) and ATP 855 (Beach 60%) to Chevron for
$349 million.
Today was just icing.
Only way is up baby.

 

[qldfrog]

yes but it took a while, they were my pick for the Feb competition but too late I think to do much good

 

[DB008]

Announcement out today on asx

Good news.

 

[Not Rene]

CBA comsec report gives a price target of $1.70 with longer term upside potential.

wish it would hurry up!

 

[So_Cynical]

CBA comsec report gives a price target of $1.70 with longer term upside potential.

wish it would hurry up!

Well it took 16 weeks for that price target to almost come good today, intra day high of $1.695 (up 9%) on the release of the Half year results and dividends, 1c special and 1c interim.

http://www.asx.com.au/asxpdf/20140224/pdf/42mxw9nfg0l55d.pdf

Have a look at these numbers.
~

 

[Not Rene]

Commsec price target is now $1.85 ..... another 16 weeks!!
I have my own price target of $2.20

 

[Joe Blow]

Commsec price target is now $1.85 ..... another 16 weeks!!
I have my own price target of $2.20

Not Rene, can you please outline your reasons for advocating a price target of $2.20? All arbitrary price targets must be accompanied by some supporting analysis, so others understand where you are coming from.

 

[Not Rene]

That would be my dreams

 

[Echidna50]

Article - BPT is included as a takeover target

Title: Oil and gas sector now in play for mergers

Richard Hemming

The Australian

June 07, 2014 12:00AM


SMALL listed oil and gas companies look to be increasingly on the auction block as bigger predators eye takeover opportunities to boost production growth given higher operating costs, a relatively high oil price and increasing domestic gas prices.

This was certainly the case for Karoon Gas Australia, whose shares spiked 46 per cent from $2.54 where it was in late April prior to its suspension of trading due to funding uncertainty. It got to as high as $3.72 this week after Origin Energy lifted the previously cash-strapped oil and gas minnow out of the grave.

Origin is on the hook to buy Karoon’s 40 per cent interest in two exploration permits for potentially large offshore gas fields in Western Australia’s Browse Basin. The deal delivers Karoon $US600 million ($647m) upfront and payments of up to $US200m if things go well for Origin.

The transaction follows other merger and acquisition activity in the sector, including the Horizon Oil (HZN) and Roc Oil (ROC) merger, the all scrip takeover by Drill Search for Ambassador Oil and Gas (AQO) and the $1.84 billion takeover of US-based oil producer Aurora Oil and Gas by Canada’s Baytex Energy.

Canaccord Genuity’s oil and gas analyst Johan Hedstrom explains why there is more M&A activity in the sector in comparison to others. He said:

“There is more takeover activity in oil and gas because the share prices have fallen, yet the oil price is $US100 plus and gas prices in Australia are rising. This is unlike other commodities like iron ore, copper and gold, which have been under sustained pressure.”

Hedstrom predicts that there will be more activity in the sector as big companies go looking for cheap assets, and small companies look for scale:

“There is going to be speculation about more activity because so many companies’ prices have become irrelevant for investors. Mergers produce scale which will attract institutions.”

Hedstrom says that candidates on the takeover front include Beach Energy (BPT), Drillsearch Energy (DLS) and Senex Energy (SXY) because of their shale gas enterprises in the Cooper Basin.

At the smaller end he includes Cooper Energy (COE) as well as Sundance Energy (SEA) and Lonestar Resources (LNR). He also singles out Karoon (KAR). “This is a huge deal for the company and means it can develop its assets in Peru and Bazil.”

 

[So_Cynical]

Beach looks like its good for a trade, POO at support as is the SP of Beach, 6 months support anyway..just keeps bouncing off this level, 1.61/2/3 - the annual report was all good, everything up and at record levels, dividend and sales revenue has doubled over the last 5 years, heaps of cash.

http://www.beachenergy.com.au/IRM/C...1/FY14FullYearResultsPresentation25August2014
~

 

[tradernor]

Seeking Alpha has today an article that talks about the 2P reserves of Beach (BPT), Santos (STO), Drillsearch (DLS) and other Australian energy producers. See the middle of the article:


http://seekingalpha.com/article/2566285-petroamerica-my-additional-take

 

[polpak]

Longer term BPT optimistic with five year chart.

Shorter term BPT's W%R suggests oversold.

What about the oil price slump ?

Larger Oil producers mostly looking for large productions.

Some may consider worthwhile some takeover opportunities which boost their production growth, remove potential competition, while costs lower as returns down with some pessimism.

Higher operating costs not likely to fade much, sources deeper or more complicated to draw from, so expect higher oil prices shall return soon enough.

Any serious production problem will speed that up.

Only thing likely to impact petroleum prices will be cheaper production costs as electric vehicles move into mass production and the vehicles to have in mass markets.

China or India could really benefit, with good prospects of achieving, IF they decide to go that way.



Australia's larger production activities mostly geared to export at prices to cover their set up costs.

Australian domestic gas prices likely rise to match export price returns, this assists smaller producers achieve better returns.


Note last weeks notification of significant shareholder increase in holdings.

Note end of week reports of resolving Russian and Ukrainian gas line problems, which may have EU imports up again.




BPT may drop further below the five year line, short term, while longer term expect to see rise again.

When may it start edging up enough to change sentiment ?-)


Added some to my longer term

​

 

[So_Cynical]

The fall in POO has been a long time coming, lots and lots of new production coming on online and static global demand....the POO held up for a long time but has now capitulated, POG going with it, BIG opportunity coming up.