Beach, Sundance eye unconventional plays
BEACH Petroleum has formed an alliance with Sundance Energy to jointly pursue unconventional oil and gas exploration projects in Australasia and other parts of the world.
Under the memorandum of understanding, the two companies will work together to identify, evaluate and acquire interests in unconventional oil and gas plays.
Beach has also agreed to subscribe for 17.5 million Sundance shares, representing a 9% stake in Sundance, at 13.5c each.
Sundance will use the $2.36 million to develop its asset base and pursue new opportunities and has also asked Beach to nominate a representative to its board.
Both companies have experience in unconventional plays, with Beach having a contingent net resource of 179 million barrels of oil equivalent in its coal seam gas, shale gas and tight gas plays in Australasia, while Sundance has extensive experience in the development of the relatively more mature North American shale resources.
“Sundance has a proven track record of identifying shale opportunities in the US market at an early stage, developing them and then bringing in larger partners,” Beach managing director Reg Nelson said.
“This is a good fit with Beach’s strategy of partnering with emerging energy companies with a promising asset base and sound technical expertise.
“Beach brings its own technical expertise and balance sheet strength to the relationship, the alliance with Sundance will allow us to keep in touch with the rapid advances in technology occurring in the USA.”
Sundance managing director Jayme McCoy added that Beach was “clearly ahead of the game when it comes to unconventional plays in the Australian market”.
Thursday, 22 October 2009
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