Production of 5.0 MMboe underpinned by strong operational performance
• 22% increase in Bass Basin production from successful follow-up wellbore interventions
• Strong reservoir performance and high facility uptime in the Western Flank
• Lower Otway Basin production due to planned maintenance and Thylacine West connection activities
Sales revenue up 32% quarter-on-quarter to $563 million driven by LNG sales
• $139 million revenue from the third and fourth Waitsia LNG swap cargoes; fifth cargo lifted in January
• Realised average gas price up 3% to $10.7/GJ; realised average LNG price of $17.3/MMBtu
Increased cash flow generation and strengthened liquidity position
• Net debt reduced to $389 million (from $555 million) and net gearing reduced to 10% (from 14%)
• $631 million of cash reserves and undrawn committed facilities at quarter-end
• 30% targeted headcount reduction achieved
Thylacine West 1 and 2 brought online to complete the offshore Otway Basin development program
• Well deliverability for the Otway Gas Plant restored to nameplate capacity
Waitsia Stage 2 transitioned from construction phase to commissioning phase
• Targeting first sales gas from the Waitsia Gas Plant in Q4 FY25
• Two Waitsia development wells completed and suspended; Arenaria 1 exploration well to spud in Q3 FY25
Moomba CCS project commissioned with capacity injection rates achieved
• Ramp-up and commissioning performance exceeded expectations
• Over 300 ktCO2e (gross) injected during the quarter
Comments from Managing Director and Chief Executive Officer, Mr Brett Woods
“Major project delivery, reliable and safe operations and strong free cash flow generation underpinned Beach’s
pleasing results for the second quarter of FY25.
“In the Otway Basin, we completed the largest ever offshore drilling and development campaign with the
Thylacine West 1 and 2 wells brought online. The campaign materially increased well deliverability for the
Otway Gas Plant and is delivering much needed new gas supply for the East Coast market. As talk of the need
for LNG import terminals to supplement near-term East Coast gas supply shortfalls intensifies, Beach is proud
to be finding and developing domestic gas for the domestic market.
“Commissioning of the Moomba CCS project was an important milestone for both Beach and Australia’s
emissions reduction journey. The project has capacity to inject and store all vented reservoir CO2 from the
Moomba Gas Plant. This puts Beach on track to achieve its 2030 emissions intensity reduction target of 35%.
“An active quarter in the Perth Basin saw two Waitsia development wells completed and suspended, two
Waitsia LNG swap cargoes lifted and transition from construction to commissioning phase for the Waitsia Gas
Plant. As we progress commissioning, we are targeting first sales gas from the Waitsia Gas Plant in Q4 FY25.
“The Waitsia LNG cargoes boosted cash flow and supported a material increase in available liquidity. Net debt
reduced from $555 million to $389 million and net gearing reduced from 14% to 10%. This de-gearing
demonstrates the significant contribution Waitsia will have once online and fully delivering“, Mr Woods said.
Financial
Sales volumes
Total sales volumes of 6,819 kboe were 24% above the prior quarter due to lifting of the third and fourth
Waitsia LNG swap cargoes and one additional Cooper Basin condensate cargo lifting
Sales revenue
Total sales revenue of $563 million was 32% above the prior quarter, mainly due to lifting of the third and
fourth Waitsia LNG swap cargoes. The average realised sales price across all products of $83 per boe was 7%
above the prior quarter and supported by higher-priced LNG sales. The average realised oil price decreased by
3% to $123 per barrel and the average realised gas price increased 3% to $10.7 per GJ.
Production from the Xyris Gas Plant and third-party gas sourced via swap arrangements enabled processing
and lifting of the third and fourth Waitsia LNG swap cargoes at the North West Shelf. The cargoes were sold
to bp under the existing LNG SPA at an average realised price of $17.3 per MMBtu, delivering revenue of
$139 million.
Beach lifted its fifth LNG cargo after quarter-end. Beach and Mitsui continue to pursue opportunities for further
LNG swap cargoes prior to start-up of the Waitsia Gas Plant.
Capital expenditure
Capital expenditure incurred of $181 million was in-line with the prior quarter as Beach connected the Thylacine
West 1 and 2 wells in the Otway Basin and progressed the Waitsia Stage 2 project in the Perth Basin.
Liquidity
As at 31 December 2024, Beach had total liquidity of $631 million (Q1 FY25: $465 million) comprising cash
reserves of $251 million and undrawn committed facilities of $380 million.
Perth Basin
Production
Quarterly gas production of 411 kboe was inline with the prior quarter. The Beach-operated
Beharra Springs Gas Plant and the Mitsuioperated Xyris Gas Plant operated at average
rates of 23 TJ/day (gross) and 29 TJ/day (gross),
respectively.
The Xyris Gas Plant was shut down for four days
due to a bushfire in the region. No damage
occurred and the plant subsequently returned
to production.
Waitsia Stage 2
The 250 TJ/day Waitsia Gas Plant reached
mechanical completion during the quarter and
completed the transition from the construction
phase to the commissioning phase.
Commissioning activities were impacted for
four days in late December 2024 due to a full
demobilisation of staff during the bushfire.
As announced on 10 December 2024, quality issues identified at the Xyris to Waitsia flowline valve station
delayed the introduction of fuel gas into the Waitsia Gas Plant. These identified quality issues are being
addressed and introduction of fuel gas is now expected in Q3 FY25.
The Waitsia Joint Venture is working closely with contractor Clough to mitigate potential for further schedule
delays. Beach has seconded 20 senior personnel to the project and early initiatives have been identified to
streamline commissioning. First sales gas from the Waitsia Gas Plant in Q4 FY25 is targeted.
Exploration, appraisal and development
The Waitsia 16 and 17 development wells were drilled during the quarter. Waitsia 16 intersected 20 metres of
net gas pay across a 110-metre gross section of the Kingia and High Cliff reservoirs. Waitsia 17 intersected
26 metres of net gas pay across a 79-metre gross section of the Kingia and High Cliff reservoirs. The wells were
completed and suspended for future connection to the Waitsia Gas Plant.
The WA 1 appraisal well spudded in mid-December 2024 and reached total measured depth of 3,447 metres
after quarter-end. Poor reservoir development was encountered at the objective levels and the well did not
meet modelled deliverability thresholds required for completion. The well was plugged and suspended after
quarter-end for a potential future side-track.
The Ventia 106 rig will next conduct the nearby Eremia decommissioning program and then mobilise to drill
the Arenaria 1 exploration well from the L1 permit. The well will target the Kingia reservoir and, if successful,
production volumes may be available for LNG export consistent with the existing Waitsia export licence.
Arenaria 1 is expected to spud later in Q3 FY25.
Otway Basin
Production
Total gas and gas liquids production of
1.6 MMboe was 8% below the prior quarter,
mainly due to planned maintenance and
Thylacine West connection activities. The Otway
Gas Plant produced at an average daily rate of
148 TJ/day (gross) for the quarter (Q1 FY25:
159 TJ/day gross).
Exploration, appraisal and development
Beach completed the offshore Otway
development program with the Thylacine West
1 and 2 development wells brought online in
October 2024. Well deliverability for the Otway
Gas Plant has been restored to nameplate
capacity, which provides greater flexibility to
service East Coast gas demand.
Planning, contracting, regulatory approvals and
community consultation for the next phase of
offshore Victoria activity progressed during the
quarter. Details of upcoming activity will be provided with the FY25 half year results on 6 February 2025.
Cooper Basin JV
Production
Total oil and gas production of 1.6 MMboe was in-line with the prior quarter. Gas and gas liquids production
of 1.4 MMboe was 3% below the prior quarter and oil production of 203 kbbl was 5% above the prior quarter.
Exploration, appraisal and development
Beach participated in 25 wells, including two wells in-progress at quarter-end. An overall success rate of 78%
was achieved from two oil exploration wells, two oil appraisal wells, four oil development wells, one gas
exploration well and 14 gas development wells.
One oil discovery was made in the Raffle field. The 14-well oil appraisal and development campaign targeting
the Coorikiana reservoir was completed with Isoptera 10 cased and suspended. Three horizontal oil
development wells were successfully drilled in the Biala field.
One gas discovery was made in the Snowball field and the eight-well gas development campaign in the
Moomba South development area continued, with four wells cased and suspended during the quarter. Gas
development drilling was also undertaken in the Gidgealpa, Raffle, Tarwonga, Toolachee and Wackett South
fields. The Moomba 390 and Moomba 391 development wells targeting the Granite Wash reservoir were
progressing at quarter-end.
Moomba CCS
Following first CO2 injection on 30 September 2024, daily injection reached capacity rates in mid-October. This
exceeded expectations for the commissioning phase and indicated the project’s potential to capture and store
approximately 1.7 million tonnes of CO2 per annum.
Since commissioning, Moomba CCS has performed in-line with expectations and over 300 ktCO2e (gross) were
injected during the quarter.
Cooper Basin Western Flank
Production
Total oil and gas production of 626 kboe was 6%
below the prior quarter. Natural field decline was
partially mitigated through strong reservoir
performance, high facility uptime and ongoing
optimisation activities.
Oil production of 455 kbbl was 7% below the
prior quarter and gas and gas liquids production
of 171 kboe was 3% below the prior quarter.
Exploration, appraisal and development
No drilling was undertaken during the quarter.
Drill rig negotiations are underway for a
development and appraisal campaign of up to 10
wells, commencing in Q4 FY25. Planning
continued for a potential exploration drilling
campaign in FY26.
Bass Basin
Production
Total gas and gas liquids production of 375 kboe
was 22% above the prior quarter due to
successful follow-up wellbore intervention
activities.
The Lang Lang Gas Plant produced at an average
daily rate of 18 TJ/day (Q1 FY25: 15 TJ/day; FY24:
9 TJ/day). Sales gas volumes of 1.5 PJ were sold
into the spot market during the quarter.
Taranaki Basin
Production
Total gas and gas liquids production of 366 kboe was
19% below the prior quarter due to a 16-day unplanned
shutdown to complete maintenance activities on the
deethaniser column.
The Kupe Gas Plant produced at an average daily rate
of 35 TJ/day (gross) (Q1 FY25: 43 TJ/day) which
supported strong customer nominations.