Beach agrees New Zealand offshore permit farm-out

Oil and gas company Beach Energy has agreed to sell a 37.5 percent share in the PEP 38264 license offshore New Zealand to a subsidiary of O.G. Energy.

Image source: Beach Energy

Beach Energy said in its financial report for the second quarter 2019 that O.G. Energy, owned by Monaco-based Israeli billionaire Eyal Ofer, agreed to farm into the license located in the Canterbury Basin off New Zealand.

PEP 38264 contains the Wherry and Gondola gas prospects and, subject to regulatory approvals of the farm-out, Beach will hold 37.5% as the operator, O.G. Energy’s subsidiary OGOG will hold an equal stake, while Discover Exploration will hold the remaining 25%.

Furthermore, Beach Energy added that a change of conditions to extend Stage 3 of the work program was submitted for approval by the New Zealand regulator.

The license joint venture subsequently committed to the Stage 3 work program, which includes the requirement to drill one well by October 2021.

This is Beach Energy’s second sale to O.G. in quick succession. Namely, Beach Energy completed the sale of its interests in the Otway assets to O.G. Energy last month.

Beach announced the sale in October 2018, and that it would sell 40% of its Victorian Otway interests to O.G. Energy through OGOG for $344 million with an effective date of July 1, 2018.

Beach still holds a 60% interest and is the operator of its Victorian Otway interests including the Geographe, Thylacine, Halladale, Speculant, and Black Watch gas fields as well as the Enterprise and Artisan exploration prospects and the Otway Gas Plant.

Beach also agreed to transfer a 40% interest in the La Bella gas field to O.G. Energy, ensuring alignment across its offshore Otway portfolio.

It is worth reminding that Beach also hired a Diamond Offshore-owned semi-submersible drilling rig to undertake its Victorian Otway offshore drilling program. The first well will be on the Artisan gas exploration well located in the VIC/P43 permit.

Offshore Energy Today Staff

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