Beach Energy flags $449 million impairment charges

Beach Energy, Cooper Basin

Beach Energy, Cooper Basin

Beach Energy’s Cooper Basin and Egyptian interests are expected to incur about $A449 million worth of non-cash asset impairment charges in the company’s 2014–15 full year accounts.

$A167 million worth of asset impairment charges after tax have been flagged for Beach Energy’s Nappamerri Trough Natural Gas (NTNG) Project, located in the Cooper Basin across South Australia and Queensland, following completion of the Stage 1 exploration program and exit of joint venture partner, Chevron Exploration Australia.

Acting Chief Executive Officer Neil Gibbins said the full year impairments have no cash impact and do not affect Beach’s underlying business.

“The reduction in asset values partly reflects the sustained low oil price environment,” Mr Gibbins said.

DeGolyer and MacNaughton evaluated well results from the NTNG Project, following the completion of a four-well fracture stimulation and flow testing campaign in ATP-855 in the second half of 2014.

Contingent 2C reserves at the NTNG Project’s PRL-33, PRL-49 and ATP-855 permits, as at 30 June 2015, were at 495 MMboe, with 196 MMboe 1C contingent resources.

Beach Energy holds a 100 per cent interest in the PRL-33 and PRL-49 permits, with a 64.9 per cent interest in ATP-855 alongside joint venture partner Icon Energy’s 35.1 per cent interest.

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