6,780 Posts.
Could this be GOOD News for LAKES An Interesting read from the COE Forum
398
Date:
06/10/18
Time:
22:45:13
Post #: 36024989 New
Ya said: ↑
reading this news from The aust made me think.
1 Eyal Ofer clearly has made the decision to invest in O&G in Aust, and particularly East Coast
2. they have plenty of capital and experience
3. almost everything wrt the reasons thay invested in the Beach Otway assets, seem to apply to the concept of a selldown of COE's assets in Gippsland - have a read below.
4. COE was continually referring to a selldown of Sole, but now has gone quiet
5. COE owns 100% Sole/manta - plenty of room for j/v
6. saves COE invest $$$ for expl and development
7 realise $$$ from expenditure and progress to date ie premium
8 all the plusses demonstrated by Beach in sale of their Otway assets, also apply to COE and C/H
9. each of C/H J/V partners could sell dow a % of their interests in C/H to allow cashed up Eyal ofer to farmin
10 BPT talks about Otway gas plant a sbig plus in their sale. well C/H j/v has Minerva plant now. same deal
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9 November 2017
Gippsland Joint Venture decision
10 October 2017 I
Gippsland JV options to be explored
Eyal Ofer joins Stokes for Otway Basin oil and gas field stake
Israeli shipping and real estate magnate Eyal Ofer has joined Kerry Stokes as an investor in the tight east coast gas sector, agreeing to buy a 40 per stake in Beach Energy’s Otway Basin plots off Victoria for $344 million as a platform for Australian growth.
The Monaco-based billionaire, who branched into oil and gas production through his OG Energy unit last year with a focus on New Zealand, says he wants to use the Otway stake as to grow further in Australia and the region.
“With this acquisition, we have acquired a cornerstone producing asset around which we intend to continue to build the portfolio and grow our presence in Australia and the region,” said Mr Ofer, who Forbes estimates is worth $US9.4 billion ($13.3bn). “We are excited at what the future holds.”
OG Energy entered Australasian oil and gas late last year by acquiring a controlling stake in NZ Oil and Gas and, through this, a majority stake in ASX-listed Cue Energy.
The deal is scheduled for completion by the end of March.
Beach, 26 per cent owned by Mr Stokes’ Seven Group, had previously made it known it was looking to sell the stake.
The price represents a 25 per cent gain to the value put on the assets when Beach agreed to buy them in September last year as part of a $1.6bn purchase of Origin Energy’s Lattice business.
But with a 47 per cent gain in oil prices since, and continued predictions east coast gas prices will rise, some were expecting a better price. As a result, shares in Beach fell 8c, or 3.5 per cent, yesterday to $2.11. Shares are still up 150 per cent since the Lattice deal was signed.
When Beach acquired Lattice, it also agreed to buy 27.7 per cent shareholder Benaris out of the assets for $190m. That represents a $274m value for a 40 per cent stake, meaning the Ofer price represents a 25 per cent gain.
RBC analyst Ben Wilson said the price was in line with his valuation and the sale had been well flagged by Beach.
Beach chief Matt Kay said: “This transaction introduces a fully aligned partner to support the rapid exploration and development of our offshore Victorian acreage.
“Securing an excellent development partner for the Otway gas fields is a pivotal step towards creating new supply to Australia’s east coast gas market.”
The Otway assets include the Otway gas plant, the Geographe, Thylacine, Halladale, Speculant and Black Watch fields, as well as Enterprise and Artisan exploration targets.
The deal would be effective from the start of 2018-19.
Beach’s reduced expected interest in the Otway has led to a reduction in guidance given last week at a Sydney investor briefing.
This year’s production guidance has fallen to 25-27 million barrels of oil equivalent (mmboe), from 26-28mmboe, and earnings before interest, tax, depreciation and amortisation guidance has slipped to between $1.05bn and $1.15bn, from $1.1bn-$1.2bn.
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