ICON BENEFITS FROM $349 MILLION DEAL

Written on the 25 February 2013

ICON BENEFITS FROM $349 MILLION DEAL

US energy giant Chevron has jumped into two shale gas plays held by Beach Energy for up to $US349 million, in a move that could also inject $US18 million into Gold Coast-based gas hopeful Icon Energy.

Chevron Australia has agreed to acquire 60 per cent interest in Beach Energy’s PEL218 tenement in South Australia and up to 36 per cent of Beach’s interest in the ATP855 tenement in Queensland.

The deal is in two stages and worth a combined $US349 million to Beach.

Icon owns 40 per cent of ATP855 and will retain that interest under this deal, but the company has agreed to sell a 4.9 per cent interest in the prospective shale gas field to Beach for $US18 million under an option exercisable by June 30 this year.

The deal enhances the development of the tenements in the Nappamerri Trough which has started to show promise for the partners following gas flows struck in early February from the Halifax 1 well in ATP855.

The Chevron farm-out agreement has been welcomed by Icon managing director Ray James (pictured) who says the joint venture will benefit from Chevron’s extensive experience and expertise in shale gas exploration and development.

Beach Energy managing director Reg Nelson says the farm-out agreement with one of the world’s largest energy explorers is a major fillip for the company.

“This transaction vindicates in many ways the vision that Beach Energy has in relation to the potential of unconventional gas in the Cooper Basin,” says Nelson.

“We look forward to working closely with Chevron and Icon Energy in the continued rejuvenation of the Cooper Basin.”


Latest News

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

QUEENSLAND WEATHER UPDATE: MAJOR AIRPORTS STILL IN BUSINESS DESPITE CANCELLATIONS AND DELAYS

DESPITE the storms and flash floods which are continuing to wreak havoc across several Queensland cities and towns...

STARS ALIGN AS GOLD COAST ICON REBRANDS

TODAY marks a shift in the Gold Coast's constellation as the iconic Jupiters Hotel and Casino officially rebra...

OROTON GOES CLICKS AND BRICKS AS PROFITS SLIDE

TWO former Aussie lawyers have turned their passion for fashion into a $15 million dollar international business six ...

Related News

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter