Beach Petroleum Limited has entered into a Farmin Agreement with Adelaide Energy Limited under which Beach will acquire a 90% interest in PEL 218, in the Cooper Basin, northeastern South Australia.
Subject to regulatory approval, Beach will acquire its interest by:
A cash payment to Adelaide Energy of A$5.14 million
Contributing a further A$2.5 million towards Adelaide Energy's share of future exploration expenditure in PEL 218.
PEL 218 is located in the Nappamerri Trough region of the Cooper Basin and is primarily prospective for gas with the Permian section, with additional prospectivity for oil within the overlying Jurassic (Eromanga Basin) sequence also recognised. Beach will assume operatorship of PEL 218 and expects to drill at least one gas exploration well in the permit during 2009/10.
Subject to regulatory approval of the Farmin Agreement, Beach will also be issued 8 million ordinary shares in Adelaide Energy at a price of A$0.12 per share.
Tags:
Adelaide Energy Limited,
Beach Petroleum Limited
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