Beach Energy divests 60% Otway Basin stake for $130m
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The news: Beach Energy has sold a 60% operated interest in the VIC/L35 permit in the Otway Basin to ASX-listed Amplitude Energy and OG Otway for approximately $130 million after tax, with the deal expected to finalise in the first quarter of FY27.
The numbers: The agreement includes $70 million in upfront cash, alongside royalty payments estimated at $140 million over the life of the field based on current contingent resources.
The context: Beach said the transaction will deliver cash proceeds at completion, retain economic exposure to future production through royalty structure, and improve capital allocation across the company’s growth portfolio.
The oil and gas explorer will not proceed with the drilling and completion of the La Bella 2 development well and its planned subsea tie-in to the Otway Gas Plant. This decision allows Beach to redirect more than $500 million of previously allocated capital toward value-accretive opportunities, it said.
What they said: “We continue to see compelling Otway backfill options through low-cost nearshore prospects and longer-dated offshore opportunities of scale, supporting our strategy to be a low-cost, high-margin producer,” Beach CEO Brett Woods said.
The source: ASX
