Beach Energy intends to withdraw from the Basker, Manta and Gummy (BMG) Joint Venture with Cooper Energy.
The withdrawal will be undertaken in accordance with the joint operating agreement, and Beach’s 35 per cent non-operated interest will be assigned to joint venture partners Cooper Energy for nil consideration.
Beach’s decision to exit the BMG JV is consistent with an ongoing focus on portfolio optimisation and prioritising capital allocation in the current lower oil price environment, and consequently a desire not to participate in the proposed appraisal of the Manta gas field.
Beach and Cooper have also accepted an offer from the National Offshore Petroleum Titles Administrator (NOPTA) to convert the BMG gas field permits VIC/L 26, 27 and 28 in the offshore Gippsland Basin into Retention Leases.
Subject to NOPTA approval and registration, Beach’s withdrawal from the BMG JV and assignment of its interest to Cooper will have an effective date of 27 October 2016.