Australia's Beach Energy Exits Egypt

ASX listed Beach Energy has exited Egypt with completion of the $20.5 million sale of Beach Petroleum (Egypt) Pty Ltd (Beach Egypt) to Rockhopper Exploration, the company announced on Wednesday.

Beach Egypt’s core asset is a 22% interest in the Abu Sennan concession.  Other partners in the asset are Kuwait Energy 50% and operator, Dover 28%. The Australian firm acquired the stake in 2010. Abu Sennan concession lies within the prolific Abu Gharadig basin of the Western Desert.

An upfront payment of $10.8 million was received on completion, and deferred consideration of approximately $7.4 million is expected over the next 12 months subject to receipt of outstanding receivables, Beach said.  Payments received prior to completion include a deposit of $1.1 million and outstanding receivables of $1.2 million.

Beach’s CEO, Matt Kay, said “This transaction completes our exit from Egypt and is another step in our ongoing process of portfolio optimisation. Divestment of non‐core assets is releasing capital and resources, and delivering cost savings and operating efficiencies.”

In addition to cash consideration payments, a post completion adjustment will be agreed and settled by early Q2 FY16.