Microsoft Word - ASX Release - Asset Impairments - 130215
For Immediate Release - 13 February 2015
Ref. #007/15
ASX Ltd / SGX Singapore Exchange Ltd Companies Announcement Office Electronic Lodgement System
Dear Sir,
NON-CASH ASSET IMPAIRMENTS
Non-cash asset impairment charges of $166 million (after tax) expected in relation to Cooper
Basin and Romanian interests
Beach Energy Ltd (ASX: BPT, "Beach") advises of asset impairment charges expected to be recognised in the FY15 half year accounts, due for release on Monday, 23 February 2015. Asset carrying values have been assessed as part of Beach's half year review process, with resultant impairment charges reflecting the current environment of lower oil prices (refer Note 1 below).
Cooper Basin impairment charges have been determined on an area of interest basis and comprise primarily non-operated oil, gas and gas liquids interests. The value of Romanian interests has been reduced to nil, with no further exploration scheduled. Summarised below are the estimated
impairment charges, which are subject to finalisation of the FY15 half year accounts.
Non‐cash Impairment Charges
($ million)
Before Tax After Tax
Cooper Basin interests $194 $136
Romanian interests $30 $30
Total $224 $166
Note 1: Brent oil price assumptions have been determined by reference to consensus estimates and include US$55/bbl in 2015, US$70/bbl in 2016, US$80/bbl in 2017 and US$90/bbl beyond 2017; A$/US$ exchange rate of 0.80 assumed constant in all years
Impairment charges are non-cash in nature and do not affect Beach's operating outlook or ability to fund future exploration activities.
Yours sincerely,
Reg Nelson
Managing Director, FAusIMM
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ASX Release
For more information please contact the following on +61 8 8338 2833: Corporate
Kathryn Presser Chief Financial Officer
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Derek Piper Investor Relations Manager
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