Cooper Basin Interest - come on STX

Comsec Research Wrap 12th Dec

re Overweight recommendation FOR BPT: and hoping this type of inetrest/ recommendation spills across (already has I reckon) to STX

Along with alot of STX posters, I am overweight STX and anxiously awaiting continuing +ve news flow and rewards

BEACH ENERGY LIMITED 1
Summary of Report
dated 10 December 2014
Stock Code:
BPT
Sector:
Energy
12mth Price Target:
$1.40*
Last Traded:
$0.88*
Market Cap:
$1,135m*
GSA SIGNED WITH ORIGIN ENERGY
BPT has signed a new gas sales agreement (GSA) with ORG to supply BPT’s equity molecules from the South Australia Cooper
Basin (SACB) and South West Queensland (SWQ) JVs from 1 January to 30 June 2015. This is in addition to the existing GSA
with ORG, with pricing of the new contract consistent with the existing contract which includes an oil linkage component.
Supply under existing GSA with ORG expected to commence in 2HFY15
Under the agreement, BPT will sell up to ~139PJ of gas over an eight-year term. ORG has an option to extend the term of the
deal by two years, which would result in an additional ~34PJ of gas sold, taking the total contract to ~173PJ. Pricing of this
contract includes an oil-linked component and other parameters, with the gas to be sourced from BPT’s share of SACB and SWQ
JV production.
No update to FY15 guidance
BPT has not updated its current FY15 production guidance of 8.6-9.4mmboe, which is split 4.2-4.5mmbbl oil and 4.4-4.9mmboe
gas and gas liquids. This represents decline of 2-10% on FY14 production and reflects the timing of new oil facilities being
brought online in the Western Flank, the natural decline at Bauer, the timing of the ramp-up of SACB JV infill gas drilling, and
future exploration and appraisal outcomes. Updated guidance is expected at BPT’s 2Q15 update, once further clarity from
Santos around the timing of JV gas production has been received.
Maintain Overweight and $1.40ps price target
We see longer-term upside potential in terms of commercialising the Cooper Basin’s unconventional resources. Initial shale results
have been encouraging. Gas pricing upside should also assist economics, and recent transactions highlight the potential value of
export options for BPT’s Cooper Basin gas portfolio. We maintain our Overweight recommendation and 12-month price target of
$1.40ps