Beach Energy Completes Initial Farm-In With Chevron

Beach Energy and Chevron have satisfied all conditions precedent for the transfer of interest of former to latter in PEL 218 and ATP 855.

In February this year, Chevron agreed to acquire working interest in two of Beach Energy’s onshore gas blocks covering an estimated 810,000 acres in the Cooper Basin in central Australia. 

The agreement provides an opportunity for Chevron to explore, evaluate and assess the potential for natural gas from shale and tight gas development in blocks PEL 218 and ATP 855.

Under the agreement, Chevron would acquire an initial 30 percent working interest in the Permian section of PEL 218 in South Australia and an 18 percent working interest in ATP 855 in Queensland. Ultimately, Chevron could earn 60 percent working interest in PEL 218 and 36 percent working interest in ATP 855 via staged earning.

The first stage transfers to Chevron remain subject to formal South Australian and Queensland government approval, with indicative approval having been granted in Queensland and the farm-in agreement having been approved and registered in South Australia to date.

Beach’s Managing Director, Reg Nelson, said: “As we have mentioned on a number of occasions and for some time now, there is a gas shortage looming in Eastern Australia. The Nappamerri Trough Gas Ventures, and the substantial gas resource within the acreage, has the potential to be a material source of gas for both the Eastern Australian domestic and international markets in the coming years.”