Beach completes acquisition of Origin’s Lattice Energy

Australia’s Beach Energy has completed the A$1,58 billion acquisition of Lattice Energy from Origin Energy.

Beach paid a completion payment of $1,498 million on Wednesday., comprising the purchase price of A$1,585 million less adjustments of A$87 million.

“Beach has received the economic benefit of Lattice since 1 July 2017, which is reflected in these adjustments and acquired cash, and includes free cash generation of approximately $155 million in H1 FY18,” Beach said.

According to Beach, payment for Origin’s conventional upstream oil and gas business was funded by existing cash reserves of $503 million and drawdown of new debt facilities of $995 million. Following payment, Beach has estimated cash reserves of $135 million, drawn debt of $995 million and undrawn debt facilities of $405 million.

As of September 2017, when the sales and purchase agreement was first announced, Lattice Energy’s assets comprised: a 67 per cent interest in the Otway Gas Project, as well as interests in various adjacent exploration permits; a 100 per cent interest in the Halladale, Speculant and Black Watch gas fields; a 42.5 per cent interest in the Bass Gas Project, as well as interests in discoveries located in nearby exploration permits.

It also held various interests in the Cooper Basin, including in the Cooper Basin Joint Venture operated by Santos and in the Cooper Basin Origin Senex exploration joint venture operated by Senex; various interests in the Perth Basin, including a 50 per cent interest in the Waitsia Gas Project and a 67 per cent interest in the Beharra Springs Project; various interests in exploration permits in the Bonaparte Basin, including a 5 per cent interest in the Petrel field; and interests in New Zealand, including a 50 per cent interest in the Kupe Gas Project and an exploration permit located in the Canterbury Basin.

Origin expects to use the cash to pay down debt.

Offshore Energy Today Staff