Farm-Out Of Exploration Acreage to Chevron
Adelaide, Feb 25, 2013 AEST (ABN Newswire) - Beach Energy Limited (
ASX:BPT) and Beach group subsidiaries, have signed documents with Chevron Australia Exploration 1 Pty Ltd and Chevron Australia Holdings Pty Ltd ("Chevron") to farm-out a portion of their interests in the PEL 218 (South Australia) and ATP 855 (Queensland) joint ventures.
Completion of the transaction is conditional upon:
- all relevant government approvals, including FIRB approval;
- approval and registration of the farm-in agreement in relation to PEL 218 by government authorities in South Australia;
- indicative approval of the transfers of interests in ATP 855 to Chevron by government authorities in Queensland; and
- approval and registration of the transfers of the interests by relevant authorities for each stage.
Icon Energy Ltd (ASX:ICN), Beach's joint venture partner in ATP 855, has consented to and waived its pre-emptive rights in relation to each stage of the transaction.
Subject to joint venture approvals, the key work program elements envisaged across the two permits involve an intial exploration program to be followed by pilot production programs.
The financial commitment by Chevron to Beach is detailed in the table (refer to link below).
If after Stage 1, Chevron elects not to proceed to acquire Stage 2, the interest held by Chevron will be re-assigned to Beach for no consideration. If after Stage 2, Chevron elects not to proceed, Beach may elect to receive a re-assignment of the interests held by Chevron.
As a result of this farm-out to Chevron, Beach is well positioned for long-term appraisal and development of the Nappamerri Trough gas resources. Post Stage 2, Beach will support Chevron should it nominate for operatorship.
Beach has led the way in unconventional exploration of the Nappamerri Trough in both South Australia and Queensland. Beach's identification of this shale and basin centred gas opportunity in the Cooper Basin resulted in Beach taking an early landholding position in both PEL 218 and ATP 855, with six vertical wells in PEL 218 and one in ATP 855 drilled to date.
Beach's Managing Director, Reg Nelson, said: "This transaction vindicates in many ways the vision that the company has in relation to the potential of unconventional gas in the Cooper Basin. We look forward to working closely with Chevron and Icon Energy in the continued rejuvenation of the Cooper Basin."
Icon put option
A put option has been granted by Beach to Icon, exercisable by Icon up to 30 June 2013, for Beach to acquire 4.9% of ATP 855 from Icon on payment by Beach of US$18 million.
View the Beach Energy announcement at the link below:
http://media.abnnewswire.net/media/en/docs/ASX-BPT-722240.pdf
Contact
Beach Energy Limited
T: +61-8-8338-2833
F: +61-8-8338-2336
WWW: www.beachenergy.com.au
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