Press release deal announcement beach 9 aug07
Published on: Mar 4, 2016
Transcripts - Press release deal announcement beach 9 aug07
Thursday 9 August 2007
FOR IMMEDIATE RELEASE
BEACH PETROLEUM SELLS
10% STAKE IN BASKER-MANTA-GUMMY PROJECT
Beach Petroleum has sold a 10 per cent equity share in the Basker-Manta-Gummy (BMG)
joint venture in Bass Strait to ITOCHU Corporation of Japan for a total of $A123 million,
valuing the project at $A1.23 billion.
Beach Petroleum, which currently owns a 50% stake, will retain a 40% participating
interest in the project. Anzon Australia has also sold a 10% share in BMG to Itochu under
the same terms as the Beach sale.
Earlier this year, Anzon and Beach, began investigations into the possibility of each
divesting a 10% interest in the BMG project. After a competitive tender process,
negotiations with ITOCHU have been successfully concluded and a conditional agreement,
subject to Designated Authority approval, has been signed by the three parties.
The effective date of the transaction is 1 June 2007. The transaction is expected to have a
material positive impact on Beach's profit result for the year ended June 30, 2007.
The new participant in the joint venture will be CIECO Exploration and Production
(Australia) Pty Ltd, a wholly owned subsidiary of ITOCHU.
Beach Petroleum managing director, Reg Nelson said, “The joint venture welcomes
ITOCHU Corporation as a 20% participant in the project. ITOCHU brings significant
technical and financial strength to the joint venture.”
The BMG project was developed to initially produce oil from the Basker and Manta fields,
based on initial proved and probable (2P) reserves estimates of about 23 million barrels
But new wells drilled in 2006 expanded the reserves base with 2P oil reserves now standing
at nearly 40MMbbl while an associated increase in the natural gas resource has nearly
quadrupled estimates of the gas/condensate resource.
Up to 6 new wells are scheduled to be drilled in the fields, commencing with Basker-6 early
Level 1, 25 Conyngham Street, Glenside South Australia 5065
GPO Box 175 Adelaide 5001
Telephone (618) 8338 2833
Facsimile (618) 8338 2336
Beach Petroleum Ltd
ABN 20 007 617 969
On completion the participants in the Basker Manta Gummy Joint Venture will be:
Anzon Australia Limited 40% (Operator)
Beach Petroleum Limited 40%
CIECO Exploration and Production (Australia) Pty Ltd 20%
For further information please contact:
Reg Nelson, Managing Director - Beach Petroleum – 08 8338 2833
Ian Howarth, Farrington National - 0407 822 319
Mark Lindh, Adelaide Equity – 0414 551 361
Beach Petroleum background
Beach Petroleum was established in the early 1960’s by the late Australian geologist,
explorer and conservationist, Dr Reg Sprigg.
The company pioneered exploration in the south-east Australian Otway basin and made
significant gas discoveries around Port Campbell in 1979.
The company now has oil and gas producing assets in south-western Queensland and owns
an average of 20 per cent in permits associated with the Cooper Basin production area in
South Australia through the 2006 acquisition of Delhi Petroleum for a total of $590 million.
Following completion of the transaction with Itochu, Beach Petroleum will hold proven and
probable reserves of approximately 90 million barrels of oil equivalent. Oil and gas
production for the 2007/08 financial year is expected to rise to 10Mmboe.
Beach holds 40 per cent of the Basker/Manta/Gummy project in Bass Strait in Victoria and
has an active exploration program both onshore and offshore around Australia and in
offshore areas in New Zealand.
The company rapidly expanding its coal seam gas production at its Tipton West project in
Queensland and is continuing to invest in the geothermal energy industry through a joint
venture in the Paralana hot rock energy project in South Australia.
ITOCHU Corporation background
ITOCHU Corporation was founded in 1858 by Chubei Itoh who started a linen trading
Since then, ITOCHU has evolved and grown into a sogo shosha (general trading company),
involved in domestic trading, import/export and overseas trading of textiles, machinery,
information and communications-related products, metals, oil, gas and other energy
sources, general merchandise, chemicals, provisions and food.
In addition, ITOCHU has made multi-faceted investments in insurance agencies, finance,
construction, real estate trading, and warehousing as well as operations and businesses
incidental or related to those fields.
The company is based in Tokyo.