Beach Energy’s deal to bring in global resources giant Chevron into its Cooper Basin shale gas prospects took another step today.
Icon Energy Limited has carved off part of its Authority To Prospect (ATP) interest in the Cooper Basin for $18 million, payable by Beach.
Icon announced today it has exercised the put option granted by South Australian miner Beach Energy earlier this year.
The option was part of moves by Beach Energy in relation to the farm-out of its equity in the ATP 855 permits to Chevron.
Under the farm-out Beach Energy assigned 60 per cent of its interest in PEL 218 and ATP 855 to Chevron Australia.
Icon retained its 40 per cent interest in ATP 855 with a put option by Beach Energy, exercisable by Icon up to 30 June 2013, where Icon can require Beach Energy to acquire a 4.9 per cent interest in ATP 855 from Icon on payment by Beach Energy of US$18 million.
Today, it exercised that option.
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Icon Energy managing director Ray James said, “our gross cash balance as at 31 March was $19.77 million and the US$18 million will go towards our exploration program in ATP 855″.
“We look forward to working with Beach and Chevron Australia as the exploration program moves forward with drilling currently underway on Hervey-1 and Keppel-1.
“The Nappamerri Trough is a potential world class gas asset and the most advanced shale and basin centred gas province in Australia. The continued exploration in the area will further de-risk the play.”
Today’s move adds to the optimism surrounding shale gas plays in the Cooper Basin.
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