another BPT report, no mention of fraccing LKO's Gippsland, but they were supposed to be doing Wombat before end of year, which seems not going to happen.
I will phone BPT monday.
"Beach Energy is expecting another year of good growth by: Cameron England From: Adelaide Now November 24, 2011 3:49PM Managing director of Beach Energy Reg Nelson with some drilling core samples at the Adelaide Convention Centre today.
Picture: Brooke Whatnall Source: AdelaideNow
BEACH Energy is looking to win a place in the ASX100 index, which should provide the Adelaide company with a share price boost. The company's share price is up more than 100 per cent since last year's annual meeting, boosting its market cap into the top 100 Australian companies by value.
Beach will have to maintain its value within the top 100 to be formally granted a place within the index, which would mean fund managers would have to start buying the stock.
Chairman Bob Kennedy told the company's annual meeting yesterday the stock had hit a three year high of $1.465 this week.
After the meeting managing director Reg Nelson said he believed the stock was still undervalued.
"I think it's got a long way to travel," he said.
"There's solid growth in the Western Flank (of the Cooper Basin) oil, but the game changers are the changed dynamics of the eastern coast gas market, the higher price, and the ability to sit on what we think are huge gas reserves.
"If we can develop that and unlock it there's a long way to go for the price there."
Beach has had success in the past year, exploring for shale gas in the Cooper Basin in far north South Australia.
That sort of gas which is held in shale rock, instead of traditional reservoirs - has not been explored for in the basin previously.
Mr Kennedy said the shale exploration program had the potential to discover reserves larger than all of Queensland's current gas reserves, or 10 times the gas produced out of the Cooper Basin over its 40 year history.
Beach has drilled two experimental wells to test the prospectivity so far, and Mr Nelson told the meeting the results surpassed "our wildest dreams".
Beach is importing a drilling rig to continue its shale gas program in the first half of next year, and is aiming for development and production by 2013-14.
The company has also had success in Egypt, finding gas in two of the scheduled six wells it is invested in there.
Mr Nelson also told the meeting the company would be shooting seismic exploration over its Tanzanian project, where the company was targeting large oil accumulations, in the first quarter of next year.
Beach is forecasting production to increase from 6.6 million barrels of oil equivalent to 7.5 million this financial year.
"I believe we will build from there in each succeeding year," Mr Nelson said."
RAVI
LKO Price at posting:
0.3¢ Sentiment: Hold Disclosure: Held
(20min delay)