Effective 1 March 2016, Drillsearch Energy Limited is a wholly owned subsidiary of Beach Energy Limited. For latest information regarding the combined operations, please visit Beach’s web site at www.beachenergy.com.au. Please note the existing Drillsearch web site will close in due course.

Reserves and Contingent Resources

Drillsearch’s 2015 Reserves and Contingent Resources Statement was released subsequent to the year end with the Full-Year Results on 26 August 2015. The review was conducted by RISC and DeGolyer MacNaughton and is in line with the company’s policy of supporting reserves and resources estimated with third party review.

Reserves

1P
mmboe

2P

mmboe

3P

mmboe

Oil      
Western Flank Oil 6.0 8.6 12.2
Developed 5.0 6.2 7.9
Undeveloped 1.0 2.4 4.3
Eastern Margin Oil 0.6 1.2 1.8
Developed 0.6 0.7 1.0
Undeveloped 0.0 0.5 0.9
Total Oil 6.6 9.8 14.0
Developed 5.6 6.9 8.9
Undeveloped 1.0 2.9 5.2
 Wet Gas      
Western Wet Gas (JV with Beach) 4.0 8.1 11.3
Developed 3.3 6.9 9.2
Undeveloped 0.8 1.2 2.1
Western Wet Gas (JV with Santos) 2.5 7.9 20.1
Developed 1.1 3.3 5.6
Undeveloped 1.4 4.6 14.5
Northern Cooper Gas and Liquids 1
Southwest Queensland Wet Gas
Total Wet Gas 6.5 15.9 31.4
Developed 4.4 10.2 14.8
Undeveloped 2.2 5.8 16.6

Total Reserves

13.1 25.7 45.4
Developed 10.0 17.1 23.7
Undeveloped 3.1 8.6 21.7

Contingent Resources

1C
mmboe

2C
mmboe

3C
mmboe

Oil
Western Flank Oil 0.3 0.5 0.9
Northern Cooper 4.8 10.8 18.8
Eastern Margin 0.2 4.6 7.5
Total Oil 5.3 15.9 27.2
Wet Gas
Western Wet Gas (JV with Beach) 0.3 0.8 1.7
Western Wet Gas (JV with Santos) 0.7 2.4 5.7
Northern Cooper Gas and Liquids 6.5 13.3 26.8
Southwest Queensland Wet Gas 0.9 3.1 7.5
Total Wet Gas 8.4 19.6 41.7
Unconventional
Central Cooper Unconventional (ATP 940) 14.8 51.4 123.1
Total Unconventional 14.8 51.4 123.1

Total Contingent Resources

28.5

86.9

192.0

1 Reserves declared at Flax in the Northern Cooper area at 30 June 2014 have been reclassified as Contingent Resources as of 30 June 2015.

Reconciliation of changes to Reserves and Contingent Resources from 30 June 2014 to 30 June 2015

 

Reserves

1P
mmboe

2P
mmboe

3P
mmboe

Reserves as at 30 June 2014 11.9 28.3 54.7
Production (Oil and Wet Gas) -3.0 -3.0 -3.0
Reserves additions
Oil 5.0 4.2 4.2
Wet Gas 2.2 5.2 11.1
Reserve adjustment
Oil -0.5 -1.3 -4.4
Wet Gas -2.6 -7.8 -16.8

Reserves as at 30 June 2015

13.1 25.7 45.4

 

Contingent Resources

1C
mmboe

2C
mmboe

3C
mmboe

Contingent Resources as at 30 June 2014 13.4 33.7 71.0
Contingent Resources additions
Oil 0.6 3.1 2.0
Wet Gas 0.8 2.8 6.6
Unconventional 14.8 51.4 123.1
Contingent Resources adjustments
Oil -0.8 -1.2 -1.7
Wet Gas -0.3 -2.9 -9.0
Unconventional 0.0 0.0 0.0

Contingent Resources as at 30 June 2015

28.5

86.9

192.0

Drillsearch’s reserves and contingent resources estimates as at 30 June 2015 have been independently reviewed by RISC Operations and DeGolyer and MacNaughton. The assets covered by each reviewer are specified below.

 

RISC Consents

Information on the Reserves and Contingent Resources in this release relating to the PRLs 151-171 and PPLs 253-256 formerly known as PEL 91, the Eastern Margin/Tintaburra assets, PRLs 14, 17, 18 and PRLs 173 and 174 (formerly known as PEL 101 assets) is based on an independent review conducted by RISC Operations Pty Ltd (RISC) and fairly represents the information and supporting documentation reviewed.

 

The review was carried out in accordance with the SPE Reserves Auditing Standards and the SPE-PRMS guidelines under the supervision of Mr. Geoffrey J Barker, a Partner of RISC, a leading independent petroleum advisory firm. Mr. Barker is a member of the SPE and his qualifications include a Master of Engineering Science (Petroleum Engineering) from Sydney University and more than 30 years of relevant experience. Mr. Barker meets the requirements of qualified petroleum reserve and resource evaluator as defined in Chapter 19 of the ASX Listing Rules and consents to the inclusion of this information in this release.

 

DeGolyer and MacNaughton Consents

Information in this release relating to PRLs 26, 129 and 130 and PPLs 239 and 257 (formerly known as PEL 106, Western Wet Gas – Beach JV), PRLs 131-134 formerly known as PEL 632 (Western Wet Gas – Santos JV), PRLs 175-179 and PPL 212 formerly known as PEL 107, and ATP 924 of the Cooper Basin with interests licensed to Drillsearch Energy Limited has been prepared under the supervision of Paul J. Szatkowski, Senior Vice President of DeGolyer and MacNaughton.

 

Mr. Szatkowski holds a Bachelor of Science degree in Petroleum Engineering from Texas A&M University, has in excess of 40 years of relevant experience in the estimation of reserves and contingent resources, is a member of the Society of Petroleum Engineers, and is a Registered Professional Engineer in the State of Texas. Mr. Szatkowski is a qualified person as defined in the ASX Listing Rule 5.41.

 

Notes:

  1. This reserves statement:

a)   is based on, and fairly represents, information and supporting documentation prepared by, or under the supervision of, the qualified petroleum reserves and resources evaluators listed in note 12 of this reserves statement.

b)   as a whole has been approved by Neil Thompson, who is a qualified petroleum reserves and resources evaluator and whose employment and professional organisation membership details are set out in note 12 of this reserves statement; and

c)   is issued with the prior written consent of Neil Thompson as to the form and context in which the estimated petroleum reserves and contingent resources and the supporting information are presented.

2.  The estimates of petroleum reserves and contingent resources contained in this reserves statement are as at 30 June 2015.

3.  Drillsearch prepares its petroleum reserves and contingent resources estimates in accordance with the Petroleum Resources Management System (PRMS) sponsored by the Society of Petroleum Engineers (SPE).

4.  Drillsearch engages independent experts DeGolyer and MacNaughton and RISC Operations Pty Ltd (RISC) to review reserves and contingent resources. Each reviewer found, based on the outcomes of its respective review and evaluation, and its understanding of the estimation processes employed by Drillsearch, that Drillsearch’s 30 June 2015 petroleum reserves and contingent resources estimates in aggregate compare reasonably to the estimates prepared by each reviewer. Thus, in the aggregate, the total volumes summarised in the tables included in this reserves and resources statement represent a reasonable estimate of Drillsearch’s petroleum reserves and contingent resources position as at 30 June 2015.

5.  Unless otherwise stated, all references to petroleum reserves and contingent resources quantities in this reserves statement are Drillsearch’s net share.

6.  Reserves and contingent resources for the Western Flank Oil Fairway have been estimated probabilistically and aggregated probabilistically to the field level. For all other project areas, reserves and contingent resources have been estimated deterministically and aggregated arithmetically to the field level. For all regions aggregation beyond the field level is arithmetic.  As a result, the aggregate 1P and 1C figures may be conservative and the aggregate 3P and 3C figures may be optimistic due to the portfolio effects of arithmetic summation.

7.  Reserves replacement ratio (RRR) is calculated as the change in petroleum reserves divided by production in the same period.

8.  Reserves estimates take the economic impact of third party royalties in account.

9.  The reference point for reserves calculations is the point of custody transfer; for contingent resources the point of transfer has been assumed.

10.  Petroleum reserves and contingent resources quoted in this reserves statement are rounded to one decimal place. Some totals in the tables may not add due to rounding. Items that round to zero are represented by the number 0, while items that are actually zero are represented with a dash “-“.

11.  Conversion factors: Sales gas is converted to equivalent barrels of oil (boe) using a factor of 6,000 cubic feet per barrel of oil equivalent (boe). LPG is converted to equivalent barrels of oil using a factor of 11.5 thousand boe (Mboe) per MMT of LPG. Condensate is converted at 1 MMbbl = 1 MMboe.

12.  Qualified Petroleum Reserves and Resources Evaluators

Name Title Employer Professional Organisation
Neil Thompson General Manager
Exploration and Development
Drillsearch Energy Limited AAPG
Susan Hyde General Manager
Reservoir Engineering
Drillsearch Energy Limited SPE

AAPG: American Association of Petroleum Geologists              SPE: Society of Petroleum Engineers