GAS exploration company Beach Energy has entered into a binding agreement with Origin Energy to acquire all shares in Lattice Energy Limited for $1.5b.
Beach – which already has a foothold in the South East gas mining sector – has described the acquisition as “transformational”.
According to yesterday’s announcement on the Australian Stock Exchange, the move will significantly enhance Beach’s scale and will create the leading ASX-listed oil and gas mid-cap with diversity of production and growth options.
Beach chief executive officer Matt Kay said the acquisition represented a significant milestone within its strategy to become a premier upstream oil and gas company.
“The transaction greatly enhances our platform for continued growth, delivers a diverse portfolio with significant upside and provides material value accretion for Beach shareholders,” Mr Kay said.
“It establishes Beach as a major supplier of gas to domestic markets and provides a step-change in production, operating capabilities and geographic exposure.”
Moreover, he said it provided attractive long-term gas contracts with Origin Energy and other high-quality counter-parties.
Lattice is a complementary portfolio of assets with diversified exposure to the Australian east coast, west coast and New Zealand gas markets with a mix of production and exploration assets.
Beach is currently drilling for gas at its new $15m Haselgrove-3 conventional well south of Penola.
It has foreshadowed expanding exploration if this well is commercially successful.
