Oz Beach Farms Into NZ Permit

Australia’s Beach Energy has reached an agreement with OMV GSB to acquire a 30% participating interest in exploration permit PEP50119 in the Great South Basin, offshore New Zealand, it said December 19.

Under the agreement, Beach will acquire a 30% participating interest in the permit in exchange for funding a 30% share of the Tawhaki-1 well cost and the associated work programme and budget. Beach said the estimated capital exposure is about A$25mn (US$17mn).

The transaction is subject to the New Zealand government and regulatory approval. Following completion, Beach’s interest in PEP50119 will be 30%, with operator OMV holding a 52.93% interest and Mitsui E&P Australia holding 17.07%.

“Tawhaki is one of three frontier exploration wells Beach will participate in over the next 18 months, the others being Wherry to the north of Tawhaki and Ironbark in the Carnarvon Basin. All three wells have the potential to add material resource volumes to Beach in a success case,” Beach CEO Matt Kay said.

The Tawhaki-1 well is planned to be drilled in early calendar 2020 by the COSL Prospector rig as part of a larger OMV-led drilling campaign.