Beach Energy Buys 20% Stake in Otway Basin Gas Permit from 3D Oil

Beach Energy on Monday said it has executed a deal to purchase a 20% interest in the T/49P offshore exploration permit in the Australia's Otway Basin from 3D Oil Limited.

In addition to this, Beach and 3D Oil have established a new joint venture by executing a joint operating agreement.

Beach will pay 3D Oil $3 million in cash with 3D Oil to remain as operator under the joint agreement.

“It is anticipated that the joint venture will commence a 755 km2 seismic acquisition program within the next twelve months, with timing subject to regulatory approvals. This work is the major commitment required to be undertaken in the initial exploration phase of the permit, with the Transaction subject to the usual government and regulatory approvals,” Beach said.

The T/49P permit, located approximately 20 kilometres to the west of King Island, is 4,960 km2 in size with water depths of around 100 metres. Adjacent to the permit are the Geographe and Thylacine gas fields, of which Thylacine is the largest field discovered in the Otway Basin to date.

The Transaction builds on Beach’s current position in the onshore Otway Basin, which services both South Australia and Victoria in terms of gas supply, the company said.