Aus Gas Supply Tightens : Beach/BPT Production Constraints

Guys, not sure if you saw Beach Energy’s (BPT) announcement today.

Could Beach have a crack at Comet Ridge in order to increase their reserves on the East Coast I wonder?

Let’s not forget that BPT had an early T/O crack at WGO late last year @ 20c from memory and lost that battle to Gina Reinhart. One would think the BPT boys would be desperate to utilise their balance sheet strategically in order to capitalise on any opportunities on offer domestically.

Comet Ridge at 25c is poo change for BPT.

Here’s an extract from this arvo’s AFR article:

“The delay in gas production is also a blow to hopes that Beach is poised to see the much anticipated turnaround in its fortunes after it struggled to boost output - much to the frustration of investors.
Beach late last year slashed estimated gas reserves at its LNG export basin near Perth by 11 per cent after the Waitsia Stage 2 drilling campaign.

The company – 30 per cent owned by billionaire Kerry Stokes – said the reduction in total proven and provable (2P) reserves by 10.6 million barrels of oil equivalent was due to “increased structural complexity in the Waitsia field and poor reservoir quality in the High Cliff reservoir at Waitsia”.
Seeking to repair its standing, Beach has ramped up efforts to bolster production in a bid to capitalise on a looming supply shortage across Australia’s east coast, and it has seen some recent results.

Beach on Wednesday said recent wells drilled in the offshore Otway Basin are now connected to its Otway Gas Plant and is now delivering additional gas into the Australian East Coast gas market.
The Australian Energy Market Operator and the country’s competition regulator have warned of a supply squeeze across Victoria and NSW as soon as this year as output wanes from fields in the Bass Strait, which once supplied 40 per cent of the East Coast’s needs.”