Beach Energy Acquires Mitsui's Interests in Bass Basin Projects
ASX-listed Beach Energy Ltd. has entered into an Asset Purchase Agreement with two oil & gas subsidiaries of Japanese conglomerate Mitsui & Co Ltd. to acquire all of their interests in the Bass basin, offshore Australia. The terms of the transaction have not been disclosed.
The interests acquired include Mitsui’s 35% interest in the BassGas project, as well as its 40% interest in the Trefoil development project and surrounding retention leases. In September 2019, Mitsui had initiated a sales process for its interests in the projects, and had retained Rothschild & Co. to help market the assets.
Upon completion of the transaction with Mitsui, Beach will hold an increased 88.75% operated interest in the BassGas project and a 90.25% operated interest in the Trefoil project. The remaining interest in the projects is held by Prize Petroleum Company Ltd.
The BassGas project lies within license T/L1, situated around 147 km off the coast of Gippsland. The project contains the Yolla gas field which was discovered in 1985, and the associated Lang Lang gas plant. Production from the field commenced in 2006, with production attributable to Mitsui’s 35% interest averaging approximately 2,000 barrels of oil equivalent per day (boe/d) during Q4-2020.
The Trefoil development project spans over licenses T/RL2, T/RL3, T/RL4 and T/RL5, and is situated 90 km off the coast of Victoria and Tasmania. The project contains the Trefoil, White Ibis, and Bass fields. In 2020, the project partners completed a full re-evaluation of the discovered resources at the Bass and White Ibis fields, and are currently using the results for the design and planning of a 3D seismic survey covering those fields. The project plans to utilize ullage within the offshore BassGas platform and onshore Lang Lang gas plant infrastructure to extend the production life of the asset.
“The transaction paves the way for Beach to progress the Trefoil development, where Beach plans to reach a decision in relation to front end engineering design during FY21,” Beach Energy said in a statement. The acquisition includes approximately 0.77 million barrels of oil equivalent (MMboe) of forecast production for 2021, with associated 2P reserve additions to be updated as part of Beach’s year-end reserves process.
The completion of the transaction remains subject to regulatory approvals and third-party consents, and is expected to occur in Q3-2021.