Cooper Energy has farmed out 35% of PEL495 in the Otway Basin, onshore South Australia.

The farminee is Beach Energy Limited. In return for a 35% participating interest in the permit BPT has offered to pay $220,000 cash, 35% of back costs ($220,000) and 70% of the first well on the permit. The value of the farm-in is approximately A$2.6 million dollars, which gives a transaction valuation for Cooper Energy's 50% share of approximately A$3.7 million.

Beach Energy will manage the drilling of the first well in the Permit and will then be nominated as the Operator after conclusion of the well.

The farm-in is subject to the approval of the South Australia Government.

The Otway Permit has a number of attractive leads and prospects and the 52 million barrel resources portfolio was reported to the market on 21st September 2010 (COE210910a). Cooper Energy recently announced a 15% farm-out of the Permit to Somerton Energy (COE201210a).

The participants in PEL495 will be Cooper Energy (50%, current Operator), Beach Energy (35%, potential future Operator) and Somerton Energy (15%).

Mike Scott, Managing Director, noted, 'We are pleased to be joined by Beach Energy in PEL495. We have had a long and fruitful relationship with Beach in the Cooper Basin and we are looking forward to replicating this success in the Otway Basin. There is an attractive portfolio of prospects and leads in the permit waiting to be unlocked and we are looking forward to drilling a well on the Sawpit Prospect next summer (December 2011-April 2012) when the weather is conducive to drilling operations.'

Tags: Cooper Energy