The acquisition includes all of Senex’s Cooper Basin assets, covering 10,876 km2 gross
Australian oil and gas exploration and production company, Beach Energy (BPT) has agreed to acquire all Senex Energy’s Cooper Basin portfolio of assets for A$87.5m ($62.5m).
The acquisition includes all of Senex’s Cooper Basin assets, covering 10,876 km2 gross. The assets have 6.8 MMboe of proven and probable reserves and estimated production of 600,000 boe in the fiscal year 2021.
The transaction involves purchase of 60% of operated interest in ex PEL 104 and ex PEL 111, including the Growler, Snatcher and Spitfire oil fields and associated infrastructure along with 60% operated interest in the GLFS and a 40% interest in the LMFS.
Beach will also own 100% interest in all these permits upon completion of the transaction.
The company will also own 100% operated interest in PPL 270, containing the producing Gemba gas field and 70% operated interest in PPL 207, containing the producing Worrior oil field.
Beach managing director Matt Kay said: “the acquisition would enable the company to apply its exploration, appraisal and development expertise across a broader footprint.
“The transaction is immediately earnings accretive for shareholders, with initial estimates pointing to approximately $5 million in annual operating cost savings, expected to be realised in the first year post acquisition.
“Pleasingly, the new acreage contains more than 10 drill-ready oil and gas prospects, providing additional upside potential. These prospects will be integrated into our growth portfolio as drilling candidates from FY22.”
Subject to a number of conditions precedent, including relevant regulatory approvals, the transaction is expected to occur in the March 2021 quarter.
Upon completion of the deal, Beach Energy will have 100% ownership in the Western Flank and associated infrastructure.