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Beach takes on Bengal in Queensland oil play

23rd May 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) - ASX-listed Beach Energy has agreed to a farm-in with TSX-listed Bengal Energy to explore for oil in the Cooper basin.

Subject to the completion of the necessary documentation and due diligence, Beach would acquire a 50% interest in the Tookoonooka permit, with the two companies establishing a joint venture (JV).

The farm-in agreement would see Beach fund 100% of an oil exploration programme that would include two wells and a three-dimentional seismic survey over some 300 km2. The company would fund these activities to a cap, after which the funding would be proportionate to the JV interests.

“This transaction continues Beach’s strong focus on building its footprint in the Cooper basin, where the majority of the company’s production is generated,” said MD Reg Nelson.

“It also provides the opportunity for Beach to apply its highly successful Cooper basin oil exploration and operational experience to the Tookoonooka area.”

The tenement covers some 2 600 km2 on the Queensland side of the Cooper basin, and to date, has only had nine wells drilled within in.

The farm-in activities would be managed by Beach on behalf of Bengal, and upon completion of the programme, Beach would have the right to be appointed operator of the JV.

Edited by Creamer Media Reporter

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