1

Melbourne Mining Club3 October 2013

2

The benefits of natural gas (CH4)

• High hydrogen, hence cleaner burning than coal

• Reduced water demand

• Able to provide flexibility to cover base and peak loads

• Potential to underpin the development of a new and scalable petrochemical industry (explosives, fertilisers etc)

• Possibility of building a new era for high purity diesel and jet fuel via gas to liquids

• ….but, Eastern Australia is short gas

3

2002 – Australian east coast gas outlook

4

Today – Australian east coast gas outlook

Existing domestic east coast contracts

Source: Core Energy Group, July 2012

Projected east coast total demand

Gladstone LNG facilities

Uncontracted gas

5

Reg Sprigg - Founder of Beach Energy

6

Company overview

• ASX 100 listed oil and gas exploration and production company

• Market capitalisation of ~A$1.8 billion

• Largest Cooper Basin oil producer

• Sixth largest Australian oil producer

• Strong balance sheet with cash of $348 million at 30 June 2013

• Undrawn secured debt facility of A$320 million

• FY13 – record underlying NPAT of $141 million, record total revenue of $700 million

7

Cooper Basin acreage

8

NTNG permits and wells

9

Major basins of Australia

10

Key Australian pipeline network

11

Key basins well served by infrastructure

12

What needs to happen next….

• Firm and far reaching policies need to be set

• Regulation needs to be streamlined and harmonised

• Scientific principles by principled scientists

• National backing needed for all LNG projects