Vintage, partners acquire Beach's equity in PRL 211

Sydney-listed Vintage Energy and its joint venture partners in PRL 211 in the Cooper basin have acquired Beach Energy’s 15% equity in the licence, the companies said on March 29.

The joint venture parties will acquire their respective share in the 15% stake in proportion to their existing holding with the result of the transaction being the following equity interests: Vintage 50% and operator; Bridgeport 25%; and Metgasco 25%.

PRL 211 is located close to the existing Cooper basin producing gas fields and infrastructure and contains the Odin gas field, discovered and successfully flow tested late last year. The licence is also adjacent to ATP 2021, held by the joint venture in the following equity interests: Vintage 50% and operator; Bridgeport 25%; and Metgasco 25%.

“This licence contains the Vali gas field which is being prepared to commence production midyear 2022. Alignment of interests between the two licences will promote efficiencies in planning and optimal field operations,” Vintage said.

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The transaction has also redistributed approximately 3.1bn ft³ of PRL 211’s 2C contingent resource which was previously attributable to Beach.

Consideration for the transaction has been structured to align with successful production from Odin with an initial milestone payment by the joint venture of A$1mn ($0.75mn) with a further A$1.25mn payable in two installments on achievement of production milestones.

Vintage managing director, Neil Gibbins, said the acquisition was a positive and valuable development for the company.

"Odin is a promising discovery, which has bright prospects for development to supply gas to the east coast domestic gas market,” he said. “It is very well located for rapid and economic development with its proximity to our Vali gas field and the Moomba gas gathering network. The potential to add value through successful appraisal and development of the Odin field is good.”