Beach Energy and Cooper Energy have accepted an offer from the National Offshore Petroleum Titles Administrator (NOPTA) to convert the Basker, Manta and Gummy gas field permits VIC/L26, 27, and 28 (BMG joint venture) in the offshore Gippsland Basin into retention leases.
Beach has also advised Cooper Energy of its intention to withdraw from the BMG joint venture, with effect from the end of the current permit year. The withdrawal will be under taken in accordance with the joint operating agreement. Beach’s 35% non-operated interest in the permits will be assigned to Cooper Energy for zero consideration, increasing Cooper Energy’s stake to 100%.
The VIC/L26, 27,and 28 permits are located nearby the Sole gas field (VIC/RL3; Cooper Energy interest: 50%) which is currently the subject of development plans for production via the Orbost Gas Plant (Cooper Energy interest: 50%). Analysis conducted by Cooper Energy has identified an economic development opportunity for the Manta gas field using the Orbost Gas Plant. Cooper Energy is offering the opportunity to others to participate in its plans to develop the Sole and Manta gas fields to meet supply opportunities in eastern Australia.
Beach has advised that the decision to exit the permits is consistent with its ongoing focus on portfolio optimization and prioritizing capital allocation in the current lower oil price environment, and consequently a desire not to participate in the probable appraisal of the Manta gas field. Subject to NOPTA approval and registration, Beach’s withdrawal from the permits and assignment of its interest to Cooper Energy will have an effective date of 27 October 2016.
Beach will retain liability for its joint venture share of existing abandonment liabilities until October 2021, being five years from the effective date of withdrawal.
Image: Gippsland Basin gas interests including VIC/L26, 27,and 28; Sole gas field and Orbost Gas Plant/ Cooper Energy
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