Beach Energy Ltd (ASX: BPT) is currently undertaking an investor roadshow to Hong Kong and Singapore to show its growing supply potential for petroleum markets.
The company is iterating the new joint venture on its Otway Basin gas project in which O.G. Energy, the company also holding a control block in New Zealand’s most active domestic petroleum company New Zealand Oil & Gas Ltd (NZOG).
Beach’s presentation pushes the point that the company is producing gas for the Australasian and Asian markets at a competitive price.
Currently 55% of the company’s Australian and NZ gas reserves are sold in the country’s East Coast gas market.
The presentation said that in the current financial year Beach was targeting $A60 million of synergy and operating efficiencies and also an $A30 M reduction in “direct controllable” operating costs.
The company was Australia’s second largest oil producer, with 48% of FY18 revenue coming from crude oil, and global liquids were seen as a growth market.
In the current year Beach was expected to participate in drilling up to 133 exploration wells, taking in 69 development and 64 exploration wells.
In New Zealand Beach is 50% owner and operator of the Kupe gas and oil project, which provides about half of NZ’s LPG supply,
The company said Kupe was expected to generate 10% of Beach’s free cash flow over the next five years, and pointed out the current NZ Government’s offshore exploration policies do not impact this project, nor any of the company’s NZ