Beach acquires Senex’s South Australian Cooper basin portfolio

Beach Energy Ltd., Adelaide, has executed an asset sales agreement with Senex Energy Ltd., Brisbane, to acquire Senex’s Cooper basin assets for a cash sum of $87.5 million (Aus.).

Beach will be sole operator in the Western Flank and associated infrastructure in South Australia with 100% interest.

The acquisition includes 6.8 MMboe 2P reserves (4.6 MMboe oil and 2.2 MMboe gas and gas liquids) and a forecast financial year 2021 production of 600,000 boe.

In addition, Senex’s exploration portfolio includes more than 10 drill-ready prospects that provide upside potential.

In detail the deal includes:

• 60% operated interest in permits ex PEL 104 and ex PEL 111, including Growler, Snatcher, and Spitfire oil fields and associated infrastructure taking Beach’s interest to 100%;
• 60% operated interest in the Growler-Lycium flowline system and 40% interest in the Lycium-Moomba flowline system taking Beach’s interest to 100%;
• 100% operated interest in production license PPL 270 containing the producing Gemba gas field;
• 70% operated interest in production license PPL 207 containing Worrior oil field.

Initial estimates suggest there will be about $5 million (Aus.) in annual operating cost savings.

The effective date of the sale is July 1, 2020, with settlement expected to occur in the March 2021 quarter, subject to conditions, including relevant regulatory approvals.