Chevron farms into Cooper basin in Australia

Chevron Corp. has signed a potential multimillion-dollar farmin deal with Adelaide-based Beach Energy Ltd.’s acreage in the Cooper basin in Australia.

The deal means that Beach will transfer up to 60% of its interests in South Australian permit PEL 218 and Queensland permit ATP 855 to Chevron in two stages.

The first stage involves transfer of 30% in PEL 218 in exchange for $36 million (Aus.) in cash and a $95 million carry.

This stage also includes an 18% interest in ATP 855 transferred to Chevron for $59 million cash.

If Chevron elects not to proceed after the first stage, the interest held by Chevron will revert back to Beach for no consideration.

If Chevron does elect to continue, Stage 2 will mean Beach transferring another 30% interest in PEL 218 to Chevron for $41 million in cash and a $47 million carry. It will also provide Chevron with another 18% in ATP 855 for $36 million.

At the end of Stage 2 Chevron will make a decision whether to go ahead with more work. If it does go ahead it will spend a further $35 million on the program.

However, if Chevron doesn’t proceed after Stage 2 Beach may elect to receive a reassignment of the interests then held by Chevron.

The key to the deal is the deep Nappamerri Trough in which Beach has been working hard to prove up commercial unconventional gas reserves.

Beach says its Encounter-1 and more recent Holdfast-1 wells in PEL218 had proved that the tight Permian strata could flow at significant rates. Meanwhile in ATP855 the joint venture between Beach and Icon Energy Ltd., Queensland, has just finished drilling Halifax-1 which flowed at 2.23 MMcfd post-fracing on a constraining choke.

For Beach the Chevron deal vindicates its vision for unconventional gas in the Cooper basin. For Chevron the deal is a chance to enter the Cooper basin and bring in its onshore gas experience in the US.

Related Articles

InterOil wins arbitration over rights dispute with Oil Search

02/11/2015 The International Chamber of Commerce arbitration panel in London has found in favor of InterOil Corp. in its battle with Oil Search Ltd. over pree...

Beach, Drillsearch make wet gas discovery in Cooper basin

02/11/2015 A joint venture of Beach Energy Ltd. and Drillsearch Energy Ltd. has made a wet gas discovery with its Ralgnal-1 wildcat well in retention lease 13...

MEO, Eni to exchange sections of Timor Sea permit

02/10/2015 MEO Australia Ltd., Melbourne, and Eni SPA—MEO’s joint-venture partner in the NT/P68 permit in the Timor Sea—have decided to split the permit betwe...

CNOOC signs two South China Sea PSCs with SK Innovation

02/10/2015 China National Offshore Oil Corp. Ltd. signed two production-sharing contracts with SK Innovation Co. Ltd., Seoul, for two blocks in the Pearl Rive...

Recent audit shows Trinidad and Tobago with 500 million bbl of 3P reserves

02/10/2015 An audit of Trinidad and Tobago’s oil and condensate reserves shows that the Caribbean twin-island nation has 508.4 million bbl of proved, probable...

Association presidents want more access in next 5-year OCS plan

02/09/2015 The presidents of three major US oil and gas trade associations urged the US Bureau of Ocean Energy Management to keep more of the US Outer Contine...

Statoil well appraises discovery near Oseberg in North Sea

02/09/2015 The Norwegian Petroleum Directorate reported results from an appraisal well drilled in the North Sea by Statoil ASA, operator of production license...

After Keystone nod, Congress should okay ANWR leasing

02/09/2015 Now that it has passed legislation supporting the Keystone XL pipeline, Congress should approve oil and gas leasing of the Arctic National Wildlife...

White House proposes making ANWR coastal plain wilderness

02/09/2015 The Obama administration said it will propose managing more of the Arctic National Wildlife Refuge, including its coastal plain, as wilderness.
White Papers

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...
Available Webcasts


Cognitive Solutions for Upstream Oil and Gas

When Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

When Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

register:WEBCAST



On Demand

Prevention, Detection and Mitigation of pipeline leaks in the modern world

Thu, Apr 30, 2015

Preventing, detecting and mitigating leaks or commodity releases from pipelines are a top priority for all pipeline companies. This presentation will look at various aspects related to preventing, detecting and mitigating pipeline commodity releases from a generic and conceptual point of view, while at the same time look at the variety of offerings available from Schneider Electric to meet some of the requirements associated with pipeline integrity management. 

register:WEBCAST


Global LNG: Adjusting to New Realities

Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected