Beach Energy to buy Vintage Energy’s interest in Otway Basin gas project
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The news: Fossil fuels producer Beach Energy will buy Vintage Energy’s interest in PEP171, an onshore gas exploration project in the Otway Basin in the south of Victoria.
The numbers: Vintage Energy will sell its 25% interest to Beach after joint venture partner Amplitude Energy waived its pre-emptive rights relating to the sale and consented to Beach being appointed operator of the exploration permit.
As previously announced, Vintage will be paid $1.25 million on completion of the transaction.
This is made up of $1 million in cash and a $250,000 waiver of a milestone payment otherwise due from Vintage.
The context: The sale still requires regulatory and ministerial approval with Vintage in discussions with the Victorian Department of Energy, Environment and Climate Action to accelerate the process.
Vintage’s divestment is a part of its strategy to concentrate resources on its Southern Flank gas fields project in the Cooper Basin and Nangwarry Contingent Resource in the Otway Basin.
The source: ASX
