Nappamerri Trough Natural Gas project
Beach Energy Limited has been advised by Chevron Exploration Australia 1 Pty Ltd that it will not participate in Stage 2 of the Nappamerri Trough Natural Gas project. Formal notification from Chevron is expected to follow shortly.
Chevron informed Beach that extensive technical evaluation has confirmed a large gas resource and potential for further appraisal. However, at this time the opportunity does not align strategically with Chevron's global exploration and development portfolio. Chevron's spending on exploration is being high?graded and significantly reduced in response to market conditions.
As a result of this decision, all Chevron equity interests in the joint ventures will return to Beach for nil consideration, and no return of Stage 1 capital expenditure is payable by Beach to Chevron. Resulting Stage 2 ownerships will be:
•PRLs 33 to 49 (South Australia): Beach 100% (+30%); and
•ATP 855 (Queensland): Beach 64.9% (+18%) and Icon Energy Ltd 35.1%