Australian Beach Farms into Carnarvon Basin

Australian Beach Energy has entered into an agreement to farm-into a BHP associated exploration project in the North West Shelf in the Carnarvon Basin, offshore Western Australia, the company said November 29.

The permits are to be acquired from Cue Energy Resources and adjoin exploration permits which contain the giant Ironbark gas-condensate prospect, it said.

“The Ironbark prospect is interpreted to have reservoirs of similar age to nearby giant fields such as Gorgon and Goodwyn. A discovery at Ironbark could result in a multi-trillion ft³ gas field,” it said. “Exploration success at Ironbark could provide significant, long-term gas volumes to feed nearby LNG plants in the coming decade,” it added.

Ironbark is less than 50 km from the North West Shelf LNG’s Rankin platform, and  near Pluto and Wheatstone LNG infrastructure.

The deal would see Beach acquire a 21% stake in one of the blocks in exchange for a one-off payment to Cue of A$900,000 ($681,000) for past costs, and future payments equating to 4% of Cue’s cost of drilling the Ironbark-1 exploration well within the permit. It is subject to BP exercising its option to acquire a 42.5% stake. BHP has until December 11 to exercise the option, unless extended, Beach said.

“With favourable Western Australia LNG market dynamics over the coming decade, successful development of Ironbark may align with expected shortfalls in LNG feedstock,” Beach’s CEO, Matt Kay, said.

“Beach is also excited to collaborate with high quality joint venture partners in BP and Cue,” he added.