Beach Energy Acquires Senex's Cooper Basin Portfolio
ASX-listed Beach Energy Ltd. has executed an Asset Sales Agreement (ASA) with Brisbane-based Senex Energy Ltd. to acquire its Cooper basin assets located in South Australia for a total cash consideration of A$87.5 million, subject to customary adjustments.
Under the terms of the ASA, Beach Energy will acquire Senex’s interests in 4 exploration licenses (PELs), 23 production licenses (PPLs) and 108 retention licenses (PRLs) in the Cooper basin. The deal also includes a 60% operated interest in the Growler to Lycium Flowline System (GLFS) and a 40% interest in the Lycium to Moomba Flowline System (LMFS).
The transaction will result in Senex’s exit from the Cooper basin after more than 20 years, and will support its plans to accelerate the development of its Surat Basin natural gas assets.
The Cooper basin assets cover a combined area of 10,876 sq. km. Upon completion, Beach Energy will become the sole operator in the Western Flank. Focus areas for the assets include the prospective Birkhead oil play, the southern portion of the Western Flank, which is covered by the recently acquired Westeros 3D seismic, and multiple Patchawarra gas prospects located adjacent to the Gemba gas discovery. Over 10 drill ready prospects have been identified within the newly acquired acreage. 2P reserves associated with the assets (as of September 30th, 2020) are approximately 6.8 million barrels of oil equivalent (MMboe), and estimated FY2021 production is around 0.6 MMboe (or ~1.64 Mboe/d).
“From a Beach perspective this was a logical acquisition given our proven track record of extracting value from permits we operate, combined with the fact we are building on our extensive position in the Western Flank across the South Australian Cooper Basin,” said Matt Kay, Beach Energy’s Managing Director.
“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,” he added.
Rothschild & Co. is acting as the financial advisor to Senex in relation to the deal.
The transaction is subject to customary closing conditions, including the receipt of regulatory approvals, and is expected to close in Q1-2021, with an effective date of July 1st, 2020.