Beach Energy Mulls Outback Asset Sales

   By Ross Kelly 
 

SYDNEY--Beach Energy Ltd. (BPT.AU) said Wednesday it may sell infrastructure assets such as natural gas processing facilities and pipelines to protect its balance sheet from tumbling oil prices.

Beach also said it would attempt next year to find a new partner to develop its shale-gas prospects in the Australian Outback after Chevron Corp. (CVX) recently decided to abandon a joint venture.

In a slideshow presentation, the Adelaide-based company said it is considering the "monetization potential" of strategic Australian infrastructure assets. Assets that could be considered for sale include the company's 20.2% stake in the Moomba natural gas processing facility operated by Santos Ltd. (STO.AU) in central Australia, pipelines running from Moomba-to-Port Bonython, and gas-storage capacity.

The presentation is part of a national roadshow introducing new Beach Chief Executive Rob Cole to investors. Analysts expect the former Woodside Petroleum Ltd. (WPL.AU) executive to focus more on Beach's conventional oil and gas assets in central Australia's Cooper Basin. On Wednesday, the company confirmed it's still trying to sell its Egyptian oil assets, while noting that acquisition opportunities exist "close to home".

As for its shale-gas prospects, Beach said it would conduct a technical review of previous drilling results later in the year before planning a potential second phase of drilling next year. Beach would "seek to re-partner" once the scoping study was complete, it said.

Write to Ross Kelly at [e-mail]

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