BEACH Energy has acquired a 20 per cent interest in the T/49P offshore exploration permit in the Otway basin from 3D Oil for $3 million.

Beach said the deal supported a broader portfolio strategy for the Otway basin, both onshore and offshore.

“The transaction builds on Beach’s current position in the onshore Otway basin, which services both South Australia and Victoria in terms of gas supply,” Beach said.

In addition to the binding sale and purchase agreement, Beach and 3D Oil have established a new joint venture by executing a joint operating agreement.

Under the terms of the SPA, Beach will pay 3D Oil $3 million in cash with 3D Oil to remain as operator under the JOA.

It is anticipated that the joint venture will commence a 75,500 hectares seismic acquisition program within the next twelve months, with timing subject to regulatory approvals.

The T/49P permit, located about 20 kilometres to the west of King Island, is 496,000 hectares in size with water depths of around 100 metres. Adjacent to the permit are the Geographe and Thylacine gas fields, of which Thylacine is the largest field discovered in the Otway basin to date.

In relation to Beach’s onshore activity, the second well of a two well exploration program on the South Australian side of the onshore Otway basin, Bungaloo-1, recently reached total depth. Initial observations from Bungaloo-1, and the first well in the program, Jolly-1, indicate good exploration potential for gas and liquids in both shallow conventional structural traps as well as deeper targets within these wells. Follow up analysis is being undertaken to confirm these initial observations.