PERTH (miningweekly.com) - US energy major Chevron would spend some $349-million to acquire ASX-listed Beach Energy’s interest in two onshore gas blocks covering an estimated 810 000 acres in the Cooper basin.
Chevron said on Monday that the agreement with Beach provided the company with an opportunity to explore, evaluate and assess the potential for natural gas from shale and tight gas development in the two blocks.
Under the agreement, Chevron would acquire an initial 30% working interest in the Permian section of the PEL 218 joint venture (JV), in South Australia, and an 18% working interest in the ATP 855 JV, in Queensland.
Ultimately, Chevron could earn 60% working interest in PEL 218 and 36% working interest in ATP 855 via staged earning.
Beach’s current JV partner Icon Energy has consented to and waived its pre-emptive rights in relation to each stage of the transaction.
Beach MD Reg Nelson said on Monday that the transaction with Chevron vindicated the company’s vision in relation to the potential of unconventional gas in the Cooper basin.
“Chevron continually looks at opportunities to expand its resource base and add to its asset portfolio globally. This opportunity potentially gives us additional high-quality resources with long-term growth potential, which aligns with our business strategy,” said Melody Meyer, president of Chevron Asia Pacific’s exploration and production company.
Chevron Australia was currently developing the Gorgon and Wheatstone natural gas projects, managing its equal one-sixth interest in the North West Shelf Venture, and operating Australia’s largest onshore oilfield on Barrow Island and the Thevenard Island oilfields.