Beach sells Arrow shares
Australia’s Beach Petroleum has sold all shares it has received from Arrow Energy in exchange for a stake in Tipton West coalbed methane (CBM)project.
Beach has received over 20 million shares valued at A$3.3958 ($2.78) per share from Arrow.
The entire stake was sold at A$77.8 million, resulting in nearly $8 million gross profit.
Beach has earlier received A$260 million in cash and expects to receive three payments from Arrow under the agreement for the Tipton West stake sale.
Beach will receive up to A$40 million in cash for the booking of gross reserves over and above Tipton West joint venture’s 31 December 2008 reserve position up to 31 December 2014 reserve certification.
Beach is entitled to another A$15 million in cash until 31 December 2016 on any liquefied natural gas cargo sold on Arrow’s share of Tipton West gas output.
A further A$15 million in cash will also be due to Beach if Arrow’s upstream tenements were to supply gas to any liquefied natural gas project with an annual production of 1 million tonnes per annum.
Tipton West holds up to 703 petajoules of gross gas reserves. The CBM tenement lies in Queensland’s Surat basin and is touted as one of Australia’s largest onshore gas fields.
Monday 217 July, 2009
Upstream
Monday 217 July, 2009
Upstream
Queensland opens up CSG groundwater data
