PETROLEUM INDUSTRY AND TRADE – AUSTRALIA

Beach Energy shares soar on growth plans

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Original article by Matt Chambers
The Australian – Page: 22 : 28-Sep-18

Beach Energy currently produces 26-28 million barrels of oil equivalent each year, but it has outlined plans to increase this to 34-40 million boe by 2022-23. The company will also seek to lift its free cash flow to $2.3bn within five years. The Lattice Energy assets, which Beach bought from Origin Energy for $1.59bn in 2017, will be a major growth driver. Beach took on $US1.58bn worth of debt to finance the acquisition, but CEO Matt Kay expects the company to be almost debt-free by the end of 2019-20.

CORPORATES
BEACH ENERGY LIMITED – ASX BPT, LATTICE ENERGY LIMITED, ORIGIN ENERGY LIMITED – ASX ORG, NEW ZEALAND OIL AND GAS LIMITED, OMV AG, SANTOS LIMITED – ASX STO

Santos planning to double gas output by 2025 thanks to Quadrant buy

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Original article by Matt Chambers
The Australian – Page: 17 & 27 : 27-Sep-18

Oil and gas major Santos has forecast that its annual production could top 100 million barrels of oil equivalent by 2025. The proposed acquisition of Quadrant Energy and its Dorado oil find will be the main driver of growth in output. Santos has also told analysts that production in the Cooper Basin could rise by around 20 per cent by 2025, while MD Kevin Gallagher says the Narrabri coal seam gas project could further boost the company’s output if it receives government approval.

CORPORATES
SANTOS LIMITED – ASX STO, QUADRANT ENERGY PTY LTD, WOODSIDE PETROLEUM LIMITED – ASX WPL, HARBOUR ENERGY LIMITED, BEACH ENERGY LIMITED – ASX BPT, CREDIT SUISSE (AUSTRALIA) LIMITED

BHP chair happy with portfolio

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Original article by Matt Chambers
The Australian – Page: 26 : 21-Sep-18

Analysts who attended BHP Billiton’s recent briefing in London say chairman Ken MacKenzie gave strong indications that the petroleum division is still regarded as a core asset. However, he signalled that further exploration success will be needed for BHP to remain in the sector. BHP’s petroleum division faces a decline in production in coming years as key gas and oil fields become depleted. MacKenzie also told analysts that BHP may be open to retaining its Nickel West assets due to growing demand for batteries.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, UBS HOLDINGS PTY LTD, NICKEL WEST

Sino Gas investors accept Lone Star bid

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 22 : 6-Sep-18

Sino Gas shareholders voted on 5 September to accept US private equity fund Lone Star’s $0.25 per share takeover bid for the company. The bid, which values Sino Gas at $530 million, was first tabled in May. Grant Thornton had deemed Lone Star’s offer "to be fair and reasonable", and it had the unanimous support of Sino Gas’s board. Sino Gas is the only Australian-based gas company with operations in China, having commenced production in the Shanxi province in late 2014.

CORPORATES
SINO GAS AND ENERGY HOLDINGS LIMITED – ASX SEH, LONE STAR FUNDS, GRANT THORNTON AUSTRALIA, TEMASEK HOLDINGS (PTE) LTD, OPHIR ENERGY PLC

Warning over gas glut: Oil Search

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Original article by Andrew White
The Australian – Page: 23 : 22-Aug-18

Oil Search has posted a 2018 interim net profit of $US79.2m ($107.7m), which is 39 per cent lower than previously. Production fell by 31 per cent to 10.24 million barrels of oil equivalent after its Papua New Guinea operations were disrupted by an earthquake in February. Oil Search expects full-year output of 24 million to 26 million boe. Meanwhile, CEO Peter Botten has questioned whether all four of the proposed LNG import terminals in the eastern states would be economically viable.

CORPORATES
OIL SEARCH LIMITED – ASX OSH, AGL ENERGY LIMITED – ASX AGL, FORTESCUE METALS GROUP LIMITED – ASX FMG, EXXONMOBIL CORPORATION

Caltex tips profit rise despite downturn

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Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 15 : 13-Jun-18

Caltex Australia has advised that its 2018 interim net profit is expected to be within the range of $A295m to $A315m, compared with $A294m previously. Caltex has also forecast that its fuels and infrastructure division will post half-year EBIT growth of nine per cent. However, its convenience retail division’s EBIT is expected to be 17 per cent lower than previously. This has been attributed to factors such as lower fuel margins and costs associated with dismantling its franchise model.

CORPORATES
CALTEX AUSTRALIA LIMITED – ASX CTX, SEAOIL, WOOLWORTHS GROUP LIMITED – ASX WOW, GULL PETROLEUM (NZ) LIMITED

Santos and ENN in an awkward spot after Harbour bid rejected

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Original article by Simon Evans, Michael Smith
The Australian Financial Review – Page: 17 : 25-May-18

Oil and gas producer Santos announced on 22 May that it had rejected a $A14.4 billion takeover bid from private equity firm Harbour Energy. Chinese gas firm ENN, which is a major shareholder in Santos, did not take part in the board’s decision to reject Harbour’s bid, as it had backed the Harbour offer. Santos CEO Kevin Gallagher says he does not expect there to be any tension on its board as a result of the decision to reject the offer, while Macquarie Capital has described the decision as a "bold move".

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, MACQUARIE CAPITAL PTY LTD, HONY CAPITAL, ENERGYQUEST PTY LTD

Santos share price now at right level

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Original article by Simon Evans
The Australian Financial Review – Page: 17 & 28 : 24-May-18

Troy Angus of Paradice Investment Management says Santos’s rejection of a takeover offer from Harbour Energy was justified, saying it did not reflect the growth potential of some assets. Santos CEO Kevin Gallagher has also defended the decision to spurn the $A14.4bn bid, after Harbour Energy questioned the oil and gas group’s medium-term growth opportunities. Santos shares closed 8.4 per cent lower at $A5.90 on 23 May, but Gallagher says the stock is now at an appropriate after rising in recent months.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, PARADICE INVESTMENT MANAGEMENT PTY LTD, CONOCOPHILLIPS, ENN ECOLOGICAL HOLDINGS COMPANY LIMITED, HONY CAPITAL, AUSTRALIAN LABOR PARTY

Industry baulks at Pauline’s gas pact

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Original article by Matt Chambers
The Australian – Page: 4 : 23-May-18

The Australian Petroleum Production & Exploration Association has warned that oil and exploration costs would rise under proposals put forward by One Nation leader Pauline Hanson. The Federal Government had agreed to a number of concessions in return for One Nation’s support for its company tax package, including changes to the Petroleum Resource Rent Tax and a gas reservation scheme in Western Australia. One Nation subsequently withdrew its support for the tax package, although LNG producers still anticipate some changes to the PRRT.

CORPORATES
AUSTRALIAN PETROLEUM PRODUCTION AND EXPLORATION ASSOCIATION LIMITED, ONE NATION PARTY, CHEVRON AUSTRALIA PTY LTD, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Santos rejects $14.5bn Harbour bid

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Original article by Matt Chambers, Scott Murdoch
The Australian – Page: 17 & 22 : 23-May-18

Santos has terminated discussions with Harbour Energy after its board deemed that the suitor’s "best and final" offer of $US5.21 ($A6.95) per share did not reflect the oil and gas group’s full value. The deal would have required approval by 75 per cent of Santos shareholders, as well as the Foreign Investment Review Board. It is believed that Santos CEO Kevin Gallagher and most of its board supported the deal, but chairman Keith Spence is said to have opposed it from the outset. Santos shares closed $A0.08 higher at $A6.44 on 22 May.

CORPORATES
SANTOS LIMITED – ASX STO, HARBOUR ENERGY LIMITED, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD