Ann: Beach Secures $150 Million Financing Facilit, page-35

re: Ann: Beach Secures $150 Million Financing... In BPT latest presentation they present data on "The Cooper Basin shale gas potential" in Slides 17 to 26 indicating an intention to book gas resource this quarter Q3 2011 and establish pilot production wells in Q1/Q2 2012.

They highlight the "BG Group - Haynesville ?core? economics" (Slide 23) which has an Average well recovery: 9 bcf then highlight the breakeven pricing and present value per well for a low to high recovery of 6.5 BCFE to 8.5 BCFE assume $5.00/Mcf natural gas price (Slide 24).

Slide 21 indicates that PEL 218 is likely to have Gas in place (Av) Bcf/sq.km of 40 - 80 which compares to the 40 and 80 in the Barnett and Haynesville properties.

In 2010, AWE took over ADI which had an interest in the Eagle Ford Shale. "Gas in the Eagle Ford has a higher oil yield and initial well productivity is similar on a gas plus condensate (mscfe/d) basis.". As part of that takover a discounted cash flow analysis was undertaken in the target statement to value ADI's share of that field. for those interested the target statement is located here:

http://www.hotcopper.com.au/post_single.asp?fid=1&tid=1182318&msgid=6637725

However to show the cash flows for developing the field I thought I would reproduce the predicted cash flows in that analysis as they might be a guide to what type of cash BPT may require to commence the devlopment of shale gas:

Year...........1.......2.........3

wells..........10......20.......21

Net Rev $M.....46.....163.......280

Op ex...$M.....6.......22.......38

Cap ex..$M......77......158......162

Total project Cash
Flow before tax:

...............(37)......(16).....80

I don't know how comparable this would be to PEL218. The above field has a high condensate rate. However, while it does indicate that capital costs over the first two years could total $235M most of these costs are offset with revenue from the early wells. Total project costs in the first two years amounted to only $53M with an inflow of $80M in the third year.

I hope this information is helpfull in some way. I guess it will all depend on the level of gas/condensate and the price we receive for each.

Regards

SP