Beach Energy shares slide after first Enterprise gas sale
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More news: Beach Energy shares slipped on the ASX, despite the oil and gas explorer delivering its first gas sale this week. However, the news came a few days after the company announced $400 million in writedowns on two other assets.
Beach shares were down 1.4% to $1.58 by 12:50pm AEST.
Over the last 12 months its shares have risen 19.3%.
Beach Energy makes first sale from Enterprise gas field
The news: Beach Energy has delivered its first gas sale this week after successfully connecting its Enterprise gas field to the Otway gas plant in Victoria.
The numbers: The Enterprise field was discovered in FY21 and holds 2P gas and associated liquids reserves of 34 million barrels of oil equivalent (MMboe). Beach signed a gas sales agreement for the field in January to supply Origin Energy until the end of 2026.
The context: Beach chief executive Brett Woods said the first sale is a significant milestone in its target of delivering a material increase in production and free cashflow over the next 12 months.
The news comes just days after Beach Energy, 30% owned by Kerry Stokes’ Seven Group, outlined writedowns worth $400 million on two other assets. It has also been troubled by delays at its key Waitsia project in the Perth Basin.
The Enterprise well site is located onshore, 3.5 kilometres from Port Campbell and 8 kilometres from the Otway plant.
The source: ASX announcement
