Beach Energy has acquired a 20% interest in the T/49P offshore exploration permit in the Otway Basin from 3D Oil Limited. The interest will be acquired for $3 million and supports a broader portfolio strategy for the Otway Basin, both onshore and offshore Beach Energy Limited advises it has executed a binding sale and purchase agreement ('SPA') for the purchase of a 20% interest in the T/49P offshore exploration permit in the Otway Basin from 3D Oil Limited. In addition to this, Beach and 3D Oil have established a new joint venture by executing a joint operating agreement ('JOA').
Under the terms of the SPA, Beach will pay 3D Oil $3 million in cash with 3D Oil to remain as operator under the JOA. It is anticipated that the joint venture will commence a 755 km2 seismic acquisition program within the next twelve months, with timing subject to regulatory approvals. This work is the major commitment required to be undertaken in the initial exploration phase of the permit, with the Transaction subject to the usual government and regulatory approvals.