Beach, Origin Ink Major Gas Deal

Beach Energy, through its wholly owned subsidiary Delhi Petroleum Pty Ltd, has signed a gas sales agreement with Origin Energy for the supply of up to approximately 139 PJ of gas from the Cooper Basin for a term of eight years. Commencement date window for supply under the agreement is from July 2014 to June 2015.

Origin has an option to extend the term of the agreement by two years, which would result in the sale of up to approximately 173 PJ of gas. The gas will be sourced from the South Australian Cooper Basin Joint Venture, the Patchawarra East JV and the South West Queensland Unit Joint Venture, Beach Energy said in a statement.

The Australia has reported that the deal is believed to be at prices close to $9 a gigajoule.