Beach Energy’s Otway Basin assets; Image courtesy of Beach
Australian oil and gas explorer Beach Energy has completed the sale of its interests in the Otway assets to O.G. Energy.
Beach announced on October 5, 2018, that it entered into an agreement to sell 40% of its Victorian Otway interests to O.G. Energy through its wholly owned subsidiary OGOG for $344 million with an effective date of July 1, 2018.
The company said that, following the satisfaction of all conditions, a completion payment of $262 million was received on May 31, 2019.
The amount comprises the purchase price of $344 million reduced by adjustments of $82 million. The adjustments reflect O.G. Energy’s share of net cash flow from these assets between the effective date of the transaction and the completion date.
Beach now holds a 60% interest and remains 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.
Beach added that its FY19 results would account for its Victorian Otway interests at 100% until May 31, 2019, and 60% after that.