Ann: Business Update Presentation, page-127

Anyway ME brought out a valuation for Beach on the 19/4/21 which valuaed BPT at A$4,838M or A$2.10 per share.

On Friday, after the downgrade announcement, BPT was trading at A$1.28 per share or A$2,908M;

The components in ME valuation were as follows:

	Column 1	Column 2	Column 3	Column 4
0		Res	Valuation
1		mmboe	A$M	A$/share
2	Cooper Basin (STO operated JV)	57	608
3	Cooper Basin (Oil)	46.1	1,187
4	Cooper Basin (Wet Gas)	15.5	265
5	Taranaki Basin (Kupe)	20	249
6	Otway Basin (excluding undeveloiped discoveries)	41	1,086
7	Other Projects	92	1,088
8		272	4,483
9
10	Cooper, SACB JV - 2C	17	48
11	Otway Basin (Artisan & Enterprise)	34	344
12
13	Cash		249
14	Debt		-208
15	Corporate Overheads		-97
16	Third Party Volumn		17
17	Total	323	4,836	2.12
18
19	Less
20	Cooper Basin (Oil)	46.1	1,187
21	Cooper Basin (Wet Gas)	15.5	265
22	Revised Valuation excluding Western Flank	261	3,384	1.48
23
24	Add:
25	Cooper Basin (Oil)	25.9	?	?
26	Cooper Basin (Wet Gas)	8.7	?	?
27	Revised Valuation/reserves	296	?	?
28

If you totally exclude the Western Flank, ME valuation comes in at A$3,384M or A$1.48 per share.

However, the western Flank still has 25.9 and 8.7 2P Oil and Gas Reserves. Consequently, based on ME valuation, would expect a revised valuation of something in excess of A$1.48 depending on the revised valuation for the Western Flank.

The Western Flank was valued at A$1,452M or A$0.64 per share prior to this down grade in 2P Reserves from 61.6 mmboe to 34.6 mmboe.

Would have to conclude that a large part of this downgrade was already anticipated by the market prior to this announcement. However, 2021 reported profit is not going to look good. Will be interesting to see where the share price goes from here.

Also just worth noting that the expected fall in FY22 Western Flank oil production of 4.0 – 5.0 MMbbls, as announced by Beach,  is against previous estimates by Beach and not FY21 production.

Regards

SP