Beach Energy : Victorian Otway Basin Site Visit Presentation

2 4 / 2 5 S E P T E M B E R 2 0 1 9

VICTORIAN OTWAY BASIN SITE VISIT

Compliance statements

Disclaimer

This presentation contains forward looking statements that are subject to risk factors associated with oil, gas and related businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including, but not limited to: price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial market conditions in various countries and regions, political risks, project delays or advancements, approvals and cost estimates.

Underlying EBITDAX (earnings before interest, tax, depreciation, amortisation, evaluation, exploration expenses and impairment adjustments), underlying EBITDA (earnings before interest, tax, depreciation, amortisation, evaluation and impairment adjustments), underlying EBIT (earnings before interest, tax, and impairment adjustments) and underlying profit are non-IFRS financial information provided to assist readers to better understand the financial performance of

the underlying operating business. They have not been subject to audit or review by Beach's external auditors. The

information has been extracted from the audited financial statements.

Free cash flow in this presentation is defined as cash flows from operating activities plus cash flows from investing activities less cash flows from acquisitions and divestments.

All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. References

to "Beach" may be references to Beach Energy Limited or its applicable subsidiaries. Unless otherwise noted, all references to reserves and resources figures are as at 30 June 2019 and represent Beach's share.

References to planned activities in FY20 and beyond FY20 may be subject to finalisation of work programs, government approvals, joint venture approvals and board approvals.

Due to rounding, figures and ratios may not reconcile to totals throughout the presentation.

2

Assumptions

The five year outlook set out in this presentation is not guidance. The outlook is uncertain and subject to change. The outlook has been estimated on the basis of the following assumptions: 1. a US$62.50/bbl Brent oil price in FY20 and a US$70/bbl Brent oil price from FY21; 2. 0.70 AUD/USD exchange rate in FY20 and 0.75 AUD/USD exchange rate from FY21;

3. various other economic and corporate assumptions; 4. assumptions regarding drilling results; and 5. expected future development, appraisal and exploration projects being delivered in accordance with their current expected project schedules.

FY20 guidance is uncertain and subject to change. FY20 guidance has been estimated on the basis of the following assumptions: 1. a US$62.50/bbl Brent oil price; 2. 0.70 AUD/USD exchange rate; 3. various other economic and corporate assumptions; 4. assumptions regarding drilling results; and 5. expected future development, appraisal and exploration projects being delivered in accordance with their current expected project schedules.

These future development, appraisal and exploration projects are subject to approvals such as government approvals, joint venture approvals and board approvals. Beach expresses no view as to whether all required approvals will be obtained in accordance with current project schedules.

Reserves disclosure

Beach prepares its petroleum reserves and contingent resources estimates in accordance with the Petroleum Resources Management System (PRMS) published by the Society of Petroleum Engineers. The reserves and contingent resources presented in this report were originally disclosed to the market in the FY19 annual report released 19 August 2019. Beach confirms that it is not aware of any new information or data that materially affects the information included in the aforesaid market announcement and that all the material assumptions and technical parameters underpinning the estimates in the aforesaid market announcement continue to apply and have not materially changed.

The reserves and resources information in this report is based on, and fairly represents, information and supporting documentation prepared by, or under the supervision of, Mr David Capon (Manager Development Offshore Victoria, New Zealand and NT). Mr Capon is a full time employee of Beach Energy Limited and has a BSc (Hons) degree from the University of Adelaide and is a member of the Society of Petroleum Engineers. He has in excess of 25 years of relevant experience. The reserves and resources information in this presentation has been issued with the prior written consent of Mr Capon as to the form and context in which it appears.

Conversion factors used to evaluate oil equivalent quantities are sales gas and ethane: 5.816 TJ per kboe, LPG: 1.398 bbl

per boe, condensate: 1.069 bbl per boe and oil: 1 bbl per boe. The reference point for reserves determination is the custody transfer point for the products. Reserves are stated net of fuel, flare & vent and third party royalties.

O T W AY B A S I N S I T E V I S I T - 2 4 S E P T E M B E R

Session 1: Introduction

Our vision, purpose and values

Our vision

We aim to be

Australia's premier

multi-basin upstream oil and gas company

Our purpose

To deliver sustainable growth in shareholder value

4

Beach's portfolio

FY19 production

Taranaki

Basin

Bass

Basin

29.4

MMboe

Otway

Basin

Perth

Basin

FY19 2P reserves

Taranaki

Western

Flank

Cooper

Basin

Bass

Basin

Western

Flank

Basin

Otway	326
MMboe
Basin
Perth
Basin

Cooper

Basin

5

Beach's corporate strategy

Optimise	Strengthen	Pursue	Maintain	Our People
our operated and non-	our complementary gas	other compatible growth	financial strength	and culture
operated producing assets	businesses	opportunities

FY20 Focus

• Focus on operating costs - $30 million reduction1in direct controllable operating costs by the end of FY20
• Execute Cooper Basin FY20 drilling program
• Progress Kupe compression project

•	Continue executing Victorian	•Continue progressing and	•Disciplined capital	•Continued focus on
	Otway development	replenishing frontier	management	enabling and engaging
	program to keep the Otway	exploration portfolio		our employees and
	Gas Plant as full as possible			contractors
•	Drill exploration wells
	Enterprise, Artisan and
	Beharra Springs Deep

•Waitsia Stage 2 FID

Safety Creativity Respect Integrity Performance Teamwork

6

1. Relative to FY18 baseline direct controllable operating costs of $160 million

Five year outlook updated at FY19 results

Accelerated production growth via highly value-accretive investment

Beach is targeting 34-40MMboe annual production in the

medium term…

Production outlook1

(MMboe)

40

35

30

25

20

FY19A FY20E FY21E FY22E FY23E FY24E

Outlook presented October 2018		Updated 5 year outlook

…and cumulative free cash flow2of more than $2.7 billion over the next 5 years…

	Free cash flow outlook1
1,200	($ million)
1,000
800
600
400
200
0
FY20E FY21E FY22E FY23E FY24E

…by accelerating investment in our expanded growth portfolio

Capital expenditure outlook1

	($ million)
1,000
750 - 850		650 - 800
800
600
400
200
0		FY21 - 24
FY20 guidance
range	Range	Outlook

71. Outlook is determined using the assumptions set out on the "Compliance Statements" slide.

2. Free cash flow is defined in disclosures on slide 2 of this presentation. For five year outlook purposes cash flows associated with operating leases are not adjusted for potential changes from AASB 16.

Victorian Otway Basin

Overview

Victorian Otway Gas Assets comprise:

•Otway Gas Plant, ~10 km from Pt. Campbell

•Producing gas fields: oThylacine

oGeographe

oHalladale

oSpeculant

•Undeveloped gas fields: oBlack Watch

oLa Bella

•Thylacine offshore platform (unmanned)

•Gathering system from wells to gas plant

•Various exploration, production and pipeline permits and licences

8

FY19 production

Vic Otway

Basin

8.4 MMboe

29.4

MMboe

Rest of

Beach

FY19 2P reserves

Vic Otway

Basin

62 MMboe

326

MMboe

Rest of

Beach

Victorian Otway is pivotal to Beach's strategy

Beach plans to develop its undeveloped 2P reserves over the next 5 years

Beach 2P reserves1

(MMboe)

48%	326	52%
	MMboe

Developed

Undeveloped

91. Outlook is determined using the assumptions set out on the "Compliance Statements" slide.

Otway Basin represents 19% of Beach 2P reserves and 27% of Beach undeveloped 2P reserves

Beach undeveloped 2P reserves1

(MMboe)

Other	Vic
	Otway

	169
	MMboe
Perth	Western
Basin	Flank
	CBJV

Refilling the hopper through value-accretive exploration

Exploration in the Vic Otway:

• Enterprise-1
• Artisan-1
• Other prospects and leads (Hercules and T/30P prospects)
• Contributing towards company target of > 100% average 2P reserves replacement over the next 5 years

The role of the Victorian Otway assets in Beach's strategy

Victorian Otway assets are expected to contribute approximately 17% of group production from FY20 - 24

5 year group production outlook1

Beach plans to invest ~$600 million in the Vic Otway Basin, 87% of investment is development and 13% exploration

5 year capital expenditure outlook

At capacity, the Otway Gas Plant can meet ~15% of Victorian peak winter demand and ~25% of Victorian annual gas demand

Victorian peak gas demand2

40

(MMboe)

by asset group 1

(TJ/d)

30

20

1,400

1,200

1,000

10

0

FY20E

FY21E

FY22E

FY23E

FY24E

Vic Otway

Other assets

Range

~$4 billion

Otway growth

Other investment

800

600

400

200

0

Otway Gas Plant supply at capacity

Underinvestment over the past 3-4 years combined with operatorship, key infrastructure and market

access were the key attractions of Lattice portfolio

10

1. Outlook is determined using the assumptions set out on the "Compliance Statements" slide.
2. Source: AEMO, Victorian Gas Planning Report

Why are we investing in the Victorian Otway?

Four years since last well drilled and three years since last well connected

Otway Gas Plant output1

(TJ/day)

250

	Halladale and Speculant brought
Facility Capacity = 205 TJ/d	online in August 2016

200

150

100

JV plans to increase gas supply to the OGP via the drilling of:

• 8 development wells
• 3 exploration wells

50													Speculant-1 was last
												well drilled in 2015
0

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Otway JV (Beach and O.G. Energy) preparing to embark on a low risk program to refill the Otway

Gas Plant. Gas market dynamics are supportive of new investment

111. Source: AEMO, Gas Bulletin Board

Positive exploration track record

100% success to date in Beach-operated acreage with seismic amplitude support

Well Name	Year	Amplitude support?	Success?
La Bella-1	1993	Yes	Yes
Geographe-1	2001	Yes	Yes
Thylacine-1	2001	Yes	Yes
Thylacine-2	2001	Yes	Yes
Halladale-1-DW1 (Black Watch)	2005	Yes	Yes
Halladale-1-DW2	2005	Yes	Yes
Halladale-1-DW3	2005	Yes	Yes
Thylacine South-1	2006	Yes	Yes
Geographe-2PST1	2012	Yes	Yes
Geographe-2L1	2012	Yes	Yes
Geographe-2L2	2012	Yes	Yes
Halladale-2	2014	Yes	Yes

Both Enterprise and Artisan prospects in our drilling program have seismic amplitude support

12Table shows all wells drilled on Beach licence and permit areas in the nearshore and offshore Victorian Otway Basin since 1993 on known, validated amplitude anomalies

Increasing exposure to market pricing

Legacy contract pricing to end in FY21/22, exploration and La Bella adds flexibility

• Increased Otway Gas Plant output to coincide withre-pricing of Lattice GSA and end of AGL GSA
• Thereafter, all gas from Geographe, Thylacine, Halladale, Speculant and Black Watch to be supplied to Origin under Lattice GSA
• Gas from any new discoveries and La Bella to be supplied into new gas contracts

Otway Gas Plant gas production outlook (100% interest)1

70
60
50
40
30
20
10
0
FY20E	FY21E	FY22E	FY23E	FY24E	FY25E	FY26E
Market prices (La Bella and one exploration success)	Re-priced contracts	Current contract prices

131. Production outlook is determined using the assumptions set out on the "Compliance Statements" slide and assumes one exploration success and La Bella development. Any changes to the underlying assumptions could cause actual reported results to differ materially to the outlook presented. Outlook is presented on 100% basis.

Beach East Coast gas portfolio

Otway gas an important component in Beach's portfolio

Beach

average realised gas price:

FY19

$6.81/GJ

Re-contracted /re-priced volumes

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

FY20		FY21		FY22	FY23	FY24
		Legacy Pricing		New Market Pricing

Almost 80% of Beach's estimated east coast gas sales in FY24 is sold at prevailing market prices

• Beach's East Coast gas portfolio comprises gas from:
  oOtway Basin assets oBass Basin assets oCooper Basin assets
• Lattice gas contracts have annualstep-ups and CPI adjustments ahead of repricing events
• By FY22 more than 70% of Beach's east coast gas sales is expected to bere-priced or re- contracted
• Beach capital investment supported by market dynamics

ACCC report that Victorian and South Australian producers have agreed prices ranging from

$8.87 - 10.83/GJ for gas supply in 2020 (average price: $9.72/GJ)1

14

1. Source: ACCC Gas Inquiry Report 2017 - 2020 Interim Report July 2019, page 60. Expected 2020 wholesale producer gas commodity prices in the East Coast Gas Market, from Victoria and South Australian producers, for supply in 2020, agreed under GSAs executed between 1 January 2018 and 24 April 2019.

O T W AY B A S I N S I T E V I S I T - 2 4 S E P T E M B E R

Session 2: Progress since Otway acquisition

Priorities and outcomes since Beach acquisition

		Priorities	Outcomes
People	•	Functional operating model to promote technical excellence	✓Functional operating model now in place
	•Build out offshore capabilities to support offshore programs	✓190 staff increased to 550, plus contractor support
HSER	•	Ensure safe operations during transition to Beach ownership	✓Our safest year on record in FY19
	•Integrate HSER systems with Beach systems	✓Our best process safety year on record in FY19
Operations	•	Focus on reliable operations	✓OGP Facility reliability 97.6% in FY19
	•	Initiate operational excellence program	✓FY20 YTD OGP facility reliability > 99%
Data review	•	Review all production data and simulation models	✓Better understanding of existing gas fields
	•Integrate 3D seismic surveys into a single 'Super Cube'	✓Optimised location of development wells
Commercial	•	Move to 100% interest in Otway	✓Toyota Tsusho stake acquired, JOA re-written
	•Sell down Otway stake to aligned, well funded partner	✓Sale of 40% interest to O.G. Energy for $344m
	•Complete GSA repricing with Toyota Tsusho volumes	✓Completed price review with Origin Energy
	•Evaluate low cost bolt-on acquisition opportunities	✓Acquired undeveloped La Bella gas field for $4m
Development	•	Re-evaluate previous operator development plans	✓Optimised 8 well development program announced
	•Secure rigs for drilling campaign	✓Contracted Ensign 931 and Ocean Onyx rigs
Exploration	•	Confirm Enterprise and Artisan as viable exploration targets	✓Enterprise and Artisan prospectivity confirmed
	•Use reprocessed seismic to identify new prospects and leads	✓Prospects and leads being high-graded

✓T/30P exploration well in drilling schedule

16

Progress under Beach ownership

January 2018:		November 2018:		February 2019:		June 2019:
		Awarded VIC/P73		Commence
Lattice		Contracted Ocean
		containing		SA Otway
acquisition		Onyx semi-
		La Bella gas field		drilling
completed		submersible rig
		for $4 million		campaign

2018

2019

October 2018:		December		May 2019:		August 2019:
Announced		2018:		Sell down of		Announced 183%
O.G. Energy to		Contracted		40% interest		organic 2P reserves
acquire 40%		Ensign 931		to O.G. Energy		replacement ratio
interest		onshore rig		complete		in Victorian Otway

17

Beach's functional operating model

Development and Exploration & Appraisal teams for Otway development program

Geoff Barker

Group Executive -

Development

30+ years' experience Woodside, Shell, RISC

GM Well Engineering &	GM Well Engineering &	GM Development	GM Development
Construction (Onshore)	Construction (Offshore)	Projects
(Subsurface)
30+ years' experience	35+ years' experience	30+ years' experience
25+ years' experience
Shell, Tullow, SASOL,	Shell, Santos, Apache,	Santos, Quadrant,
Santos, Oil Search, RISC
Petro SA	Vermillion	Origin, Apache

Well engineering and
	Well engineering and		Projects team		Subsurface team
construction team		construction team
		20 people		7 people
14 people		28 people

Jeffrey Schrull

Group Executive -

Exploration & Appraisal

30+ years' experience

Chevron, Addax

GM E&A (Victoria)

20+ years' experience

Hess, InterOil

Exploration & appraisal team

13 people

18

Otway Basin seismic reprocessing and remapping

Otway Basin data review since acquisition

Integrated workflows targeting exploration and development opportunities

Seismic - Lower subsurface risk

• Legacy 3D seismic surveys in the offshore basin reprocessed into a Super Cube - over
  9,000 km2of data
• State-of-the-artseismic reprocessing and rigorous mapping has led to reserves upgrades in producing fields and identification of new prospects
• Super Cube allows the calibration of new prospects and leads to existing fields, reducing risk
• Development well planning onbest-in-class depth migration data reducing execution risk

Courtesy of

20			Seismic x-section on next page

Otway Basin data review since acquisition

ANew data - fundamentals in place			A'
Enterprise-	Minerva-1	Artisan-proposed	Thistle-1	GeographeGeographe-1	Thylacine-1Thylacine-2
proposed				North-1

In-house and external reprocessing of existing seismic surveys has led to a better understanding of	Courtesy of

21existing fields, increased confidence in existing prospects and the identification of new opportunities

Otway Basin data review since acquisition

Thylacine remapped - leading to optimised well locations

•Thylacine gas field currently producing from four wells

•Current deliverability ~50 TJ/day

•Four new development wells planned as part of upcoming drilling campaign

•State-of-the-art reprocessing of Super Cube and rigorous mapping led to increase in reserves and optimisation of new development well locations

•Targeting an increase in Thylacine deliverability to 150 TJ/day once all new development wells are brought online

22	Courtesy of

Otway Basin data review since acquisition

Artisan and Hercules

Artisan-1

SSE

NNW

-

500m

• Artisan, a low risk exploration prospect, will be the first well drilled in the offshore campaign
• Super Cube seismic data allows otherde-risking indicators to be observed and calibrated

High

Hercules

Lead

Low

• Work on Artisan and surrounding seismic data has identified another lead to the south - named Hercules
• Hercules under consideration for drilling as part of current drilling program, depends on Artisan success

23Courtesy of

Otway Basin data review since acquisition

La Bella - discovered gas field provides optionality

• Permit VIC/P73 containing the La Bella gas field was acquired as part of government gazettal round in February 2019 for $4 million
• Gross 2P gas reserves ~40 PJ
• Victorian Otway 2P reserves life of 12 years means we have flexibility around development timing
• New data allows rapid understanding and calibration of the field and planning is now underway for development
• Well timing and pipeline connection dependent on other drilling results

Courtesy of

24

Otway Basin data review since acquisition

Further exploration potential - T/30P and beyond

• T/30P prospect and lead portfolio being refreshed utilising Super Cube data

1. Portfolio currently being matured for drilling

• 1. The T/30P commitment well is on the rig schedule for execution in FY21
• Further exploration potential identified in the outboard area
• Beach team will mature prospects and leads for consideration as future drilling candidates

25

Courtesy of

Deep Shallow

O T W AY B A S I N S I T E V I S I T - 2 5 S E P T E M B E R

Session 3: Otway Gas Plant

Beach's functional operating model

HSER team

Brett Doherty

Group Executive - HSER

30+ years' experience

Rasgas, Inpex

Head of Head of

Head of Corporate Risk

Head of Health & Safety

Head of Operations

Head of Environment

Assurance

Technical Assurance

20+ years' experience

13+ years' experience

20+ years' experience

15+ years' experience

30+ years' experience

Santos Ltd, Corrs

Inpex, BHP

Beach, SA Government

Origin Energy, Rio Tinto

ExxonMobil, Origin

Chambers

27

Health, safety, environment and risk

Safety performance	Environmental performance2
TRIFR116	Crude Spill Volumes (kl)

	15.6
12						51.9
8			7.9							99.9%
						9.6
4				3.5	3.4
	3.8
							0.2
0								0.1	0.07
FY15	FY16	FY17	FY18	FY19
	FY15	FY16	FY17	FY18	FY19

Focus on HSE delivering best performance to date

• Safety: Our safest year on record
• Environment: Our best environmental performance on record
• Process Safety: Our best process safety performance on record

281. TRIFR: Total Recordable Injury Frequency Rate, calculated as number of recordable injuries per million hours worked (Beach employees and contractors).

1. Includes Lattice assets from 1 January 2018.
2. Based on API 754 Tier 1, 2, 3. Loss of Primary Containment process safety events.

Process Safety - Loss of containment3

10

8

6

4

2

0

Dec Feb Apr	Jun Aug Oct Dec Feb Apr	Jun Aug Oct Dec Feb Apr June
2017	2018	2019

Pacesetting HSER performance achieved through …

Organisation

• Modelled on established industry practice, yielding HSE independence and significant discipline experience.
• Entire Division recruited to provide HSE expertise across all Oil & Gas Drilling, Construction and Operations activities
• Delivered this support efficiently through a Functional Model.

Systems

• Deliberate decision to continue operating under the Lattice Energy HSEMS providing stability and clarity on risk controls during the transition.
• Completed integration of important HSE IT systems, including the Incident and Action Management Tools.
• Implemented a Emergency and Incident Management Framework, Response Teams and System.

Strategy

• Heightened focus on process safety leadership - assurance executed by all levels of the business.
• Integrated and improved Technical Authority and Process Safety Frameworks.
• Implemented3-Tier Assurance Framework.
• Addressing community expectations through focus on sustainable development - emissions benchmarking across all assets with the aim of

setting future reduction targets.

29

HSE&R - 5 Year Vision and Strategy

# incidents

Safety

Process Safety

Environment

Health

Security

• 5 Year Vision: Zero incidents achieved and maintained
• Strategy of continuous improvement year on year

15%	Reduction strategy leverages:
	•	Annual KPIs and Targets
	•	Internal Inputs
		oIncident investigation learnings
		oAudit and assurance findings
	•	External Inputs
		oIndustry group participation
		oRegulations and standards
		oIndustry best practice

2019

2020

2021

2022

2023

30

Operational excellence

Delivery of value through safe, reliable and efficient operations

People

Performance

HSE	Process &
and risk	technology

31

Beach's functional operating model

Production Division : Victoria - Otway

Dawn Summers

Chief Operating Officer

25+ years' experience

BP, Genel Energy, Origin

GM Technical Services

GM Production, Planning

GMs of SA, WA and

GM Victorian

Operations

20+ yrs experience

& Performance

NZ

30+ yrs experience

BHP, Origin, BP,

20+ yrs experience

Woodside, Mobil, AMEC

Union Texas

BHP, Santos, AWE, Mitsui

32

Operational excellence

Delivery of value through safe, reliable and efficient operations

Key goals

Key targets

Otway FY19

actuals

	Reliability		Operating costs
	98% reliability across all operating assets		Sustainable reduction in direct operating costs of
	by end FY20		greater than 20% by end FY20
	>$20 millionper annum incremental revenue		>$30 millionper annum reduction in direct
	targeted by the end of FY20 vs FY18		controllable operating costs by FY20 vs FY18
	2.6% Improvement=$8.2m incremental revenue		12% Op Cost Reduction = $7.7m
	Reliability : FY18 = 95% to FY19 = 97.6%		$/boe : FY18 = 8.9 to FY19 = 7.3

33

Operational excellence

Improving base productionusing industry best practice & technology

Productivity

• Advanced Process Control
• Secondary recovery
• Technical Limit and debottlenecking techniques

Application at Victorian Otway

•Best practice start-up times and reduced downtime

• Process efficiency including inlet compressor control and LPG yield optimisation
• Debottlenecking of liquids handling during pig runs•Optimising production and exports
• Optimising fuel gas and reducing emissions

Victorian Otway facility reliability increased from 95% in FY18 to 97.6% in FY19

34

Operational excellence

Driving a sustainable reduction in direct operating costs

Operating Cost		Application at Victorian Otway

• Drone technology - Offshore Platform Inspections

✓Advanced Inspection	•	Advanced Digital Radiographic techniques - CUI inspections
techniques

• Reducing confined space entry through digital technology

✓Smart, risk-based	•Optimising high frequency maintenance activity, planning, tool time
•System integration and functional alignment
maintenance 'scrub'

• Utilising smart technology to increase reliability

✓JV Partner and Basin	•	Warehousing, spares and contractor synergies
supply chain & logistics	•	Helicopter, vessel & vehicle optimisation in Victoria
synergies

Victorian Otway operating cost reduced from $8.9/boe in FY18 to $7.3/boe in Y19

35

The Otway Gas Plant

•The Otway Gas Plant is located onshore near Port Campbell, Victoria

•It processes commingled raw gas from the Thylacine, Geographe, Halladale and Speculant gas fields, into sales gas, LPG (propane and autogas) and condensate products

•The maximum operating capacity of the onshore plant is approximately 205 terajoules per day (equivalent to 75 PJ/a)

•The plant is designed for annual average production of:

o60 petajoules of natural gas (PJ/a)

o~100,000 tonnes of LPG

o~800,000 barrels of condensate

36

Facilities overview

OGP connection to the gas grid

•The Otway Gas Plant is strategically located close to key infrastructure:

oIona gas storage facility

oSEA Gas pipeline (to Adelaide)

oSouth-west pipeline (to Melbourne)

37

Otway Gas Plant process flow diagram

38

O T W AY B A S I N S I T E V I S I T - 2 5 S E P T E M B E R

Session 4: Development plans

Our forward development program

Indicative drilling timeline

ERD program	Rig: Ensign 931

FY20

FY21

FY22

Black Watch-1Enterprise-1

Offshore program	Rig: Ocean Onyx

		Development drilling		Development drilling
		Development program: 4 x Thylacine, 2 x Geographe wells and La Bella
	Artisan-1		T/30P well

• Eleven drilling opportunities in current program: 8 development wells and 3 exploration wells
• Rig schedule to remain flexible depending on drilling results. E.g. La Bella timing may be pushed back in the schedule depending on exploration results at Enterprise and Artisan.

40

Nearshore - starting close to home

Lowest development costs

Ensign 931 rig secured for ERD drilling program

• Same rig was used to drill Halladale and Speculant development wells
• Rig is currently drillingDombey-1 in SA Otway Basin
• Following the completion ofDombey-1 drilling, rig will mobilise to Victoria to drill Black Watch-1 development well and Enterprise-1 exploration well
• The onshore rig will drill highly deviated wells to reach offshore reservoirs
• Key benefit is the onshore wellhead location, providing lower cost completion and processing options as well as fasterhook-up to the Otway Gas Plant

41

BlackWatch-1 to be drilled from Halladale well pad

Halladale as a template - Black Watch as follow up

Halladale delivered:

• Halladale/Speculant online rate 80 MMscf/d
• High production rates maintained by pressure support/recharge
• 2P reserves increased by 3.6 Bcf (net) FY19 due to lower production declines supported by new mappings

Black Watch development anticipated to do the same:

• Approximately 70% of the BlackWatch-1 well path twins the producing Halladale-2 well
• Well designed for 60 MMscf/d

43

Enterprise exploration well

Low risk, high value exploration target in a proven play

Enterprise-1

Enterprise-1

Enterprise-1

Proposed

High

Low	Enterprise
East Lead

• Enterprise 7 km from Minerva in proven Waarre play
• New Super Cube tied to proprietary transition zone data allows calibration to known fields reducing subsurface risk
• In a success case:
  oEnterprise-1 to be cased and suspended as a future producer
  oProceed with regulatory approvals and construction of new pipeline to Otway Gas Plant

Ocean Onyx semi-submersible rig

• Ocean Onyxsemi-submersible rig contracted in December 2018 for the offshore Otway Basin drilling program
• Ocean Onyx is currently undergoing upgrades in Singapore
• Upgrades are required to handle the expected operating conditions in the Otway Basin
• Rig delivery currently expected in Q3 FY20

Key remaining milestones ahead of offshore drilling:

• Completion of upgrade installation and operational readiness checks
• Regulatory approvals (e.g. NOPSEMA approval of safety case)
• Delivery of long lead items

45

Otway offshore scope

Diagrammatic only - not to scale	Subsea Structure			Future Subsea Developments
	Subsea Tree
	Rigid Tie-In Spool	Flexible Flowline		Existing Infrastructure
46	Umbilical

• Schematic shows how the seven offshore development wells and Artisan exploration well (success case) would be connected to the existing offshore infrastructure
  oGeographe wells are connected with short rigid connectors to existing tie-in points
• • Short lead times and low cost
• Thylacine wells tied back to platform using flexible flowlines
• Reviewing options to optimise subsea infrastructure
• La Bella tie in route depends on Artisan success, but usespre-existingtie-in points in either case

Our plan is to fill the Otway Gas Plant

…and keep it full with the lowest unit technical cost gas

• Output to progressively ramp up as wells connected and tied in, commencing with BlackWatch-1 in H2 FY20

Otway Gas Plant gas production outlook (100% interest)1

60

• Sufficient deliverability expected to be available to fill OGP capacity by FY23

50

40

PJ

30

20

10

0

FY20

FY21

FY22

FY23

FY24

FY25

FY26

FY27

FY28

2 exploration successes + La Bella

1 exploration success + La Bella

471. Production outlook is determined using the assumptions set out on the "Compliance Statements" slide and assumes risked exploration success and La Bella development. Any changes to the underlying assumptions could cause actual reported results to differ materially to the outlook presented. Outlook is presented on 100% basis.

Growth potential (debottlenecking)

• Beach undertaking review of facility constraints
• Evaluating options for increasing throughput above current capacity limit of 205 TJ/day
• Range of low to higher cost and capacity addition options expected to be prepared
• Capacity expansion to be considered based on results of drilling campaign

48

Key takeaways

1. Safety takes precedence in everything we do
2. Vic Otway is a strategically important asset to Beach and East Coast gas market

1. 15-20%of Beach 2P reserves, 5 year investment and production, Vic winter gas demand (at capacity)

3. We've made significant progress in Vic Otway since acquisition

1. Beach team has the offshore experience and capabilities

1. Onshore and offshore rigs contracted for drilling programs

1. Rigorous rework of all data has optimised well locations, improved understanding of assets and yielded more prospects and leads

1. 1. Operational efficiency ~98% reliability in FY19, > 99% in FY20 YTD
2. Beach is preparing to execute on its 3 year, $1 billion (gross) development program designed to refill the plant and extend the life throughvalue-accretive exploration, potentially requiring de-bottlenecking
3. Otway Gas Plant to play a key role in meeting Victorian gas demand for years to come

49

O T W AY B A S I N S I T E V I S I T

Appendices

Otway Basin - History of asset and commercial activity

Year

Asset Activity

Year

Commercial Activity

2001 Gas discovered at Thylacine and Geographe

2004 Otway Gas Project sanctioned

2004

2010

Initial joint venture for development of Thylacine and Geographe: Woodside Energy 51.55%, Origin Energy Resources 29.75%, Benaris International NV 12.70% and CalEnergy Gas (Australia) 6%

Origin Energy acquires Woodside interests and assumes operatorship

2005 Gas discovered at Halladale and Black Watch

2017

2008 Thylacine gas production commences

2017

2013 Geographe gas production commences

2017

2014 Gas discovered at Speculant

2018 (Jan)

2016 Gas production commences at Halladale and Speculant

2018 (Jun)

51	2018 (Oct)

Origin announced proposal to acquire Benaris interests

Origin announces sale of Lattice Energy (including Otway assets) to Beach

Beach announces acquisition of Toyota Tsusho interests

Lattice acquisition completed

Beach completes acquisition of Toyota Tsusho interests, moves to 100% ownership

Beach announces sale of 40% interest in all offshore and nearshore Otway interests and OGP to OGOG Energy

Beach Energy Limited

Level 8, 80 Flinders Street

Adelaide SA 5000 Australia

1. [phone]

1. [phone] beachenergy.com.au

Investor Relations

Nik Burns, Investor Relations Manager

Mark Hollis, Investor Relations Advisor

T: [phone]