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Beach sells 40% of Victorian Otway assets

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Adelaide-headquartered oil and gas explorer Beach Energy has announced it will sell 40 per cent of its Victorian Otway assets to Eyal Ofer’s OG Energy for $344 million.

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Following the sale, four new joint ventures will be formed, with Beach operating and having a 60 per cent interest in each joint venture, the company said in a statement today.

The Otway parcel includes the Otway Gas Plant, existing gas fields Geographe, Thylacine, Halladale, Speculant and Black Watch as well as exploration prospects Enterprise and Artisan.

“Securing an excellent development partner for the Otway gas fields is a pivotal step towards creating new supply to Australia’s East Coast gas market,” Beach chief executive Matt Kay said in a statement.

In a separate statement, Beach cut its fiscal year 2019 production and core earnings guidance.

The company now expects to report earnings before interest, tax, depreciation and amortisation between $1.05 billion to $1.15 billion, lower than previous guidance of $1.1 billion to $1.2 billion.

It expects to produce between 25 to 27 million barrels of oil equivalent, down from previous guidance of between 26 to 28 mmboe.

– AAP

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