Beach Energy explores acquisitions in order to expand
With intentions of expanding and becoming a top-50 company in Australia, Beach Energy has focused on merging and acquisitions (M&A) to accelerating the company’s growth.
As our sister site Business Review Australia reported, the oil and gas company recently released a strategic review of its global operations that includes a plan for 15 percent corporate savings within the next financial year. Beach has taken a keen interest in acquisitions, and has even set up a corporate development team to search for new opportunities.
According to UBS analyst Nik Burns, PNG companies Horizon Oil and Kina Petroleum could be potential candidates to merge with Beach.
Recently, Beach signed a binding agreement to acquire a 40 percent operating interest in the ATP 1056 permit in Australia from a subsidiary of AGL Energy. ATP 1056 has long been identified as highly prospective for oil and is covered by 235 square miles of 3D seismic, with two small discoveries currently on extended production test.
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However, managing director Rob Cole has gone on record saying that Beach feels the need to diversity outside of the area, and outlines a vision in annual production and reserves to propel it up the rankings.
Consolidation in the region has been viewed as probable by many, with Seven Group Holdings owning nearly 20 percent of both Beach and Drillsearch Energy. However, Cole insists the company will only pull the trigger if it makes sense for the company.
“We agree there is a potential for significant consolidation benefits, but consolidation only makes sense if it can be done on a basis that creates value for our shareholders,” said Cole. “A dedicated corporate development team has been established to enhance our acquisition capabilities. The team is actively screening and pursing a wide array of opportunities.”
While Beach has an interest in changing its infrastructure in its Cooper Basin headquarters, any agreement requires approval from its joint venture partners. The company is currently pondering a stand-alone infrastructure from a potential third party.
In addition, Beach is searching to replace Chevron in its Nappamerri Trough shale exploration project in the Cooper Basin. Meanwhile, Cole said Beach’s sale processes for its interests in the Browse and Carnarvon Basins have begun.
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Beach owns a diverse variety of infrastructure that includes a 20 per cent stake in the South Australian Cooper Basin Joint Venture, which is a partnership with Santos and Origin Energy. The company is also searching for a joint venture partner to invest in its Otway Basin permits to assist with a conventional drilling program.
Hydrostor receives $4m funding for A-CAES facility in Canada
Hydrostor has received $4m funding to develop a 300-500MW Advanced Compressed Air Energy Storage (A-CAES) facility in Canada.
The funding will be used to complete essential engineering and planning, and enable Hydrostor to plan construction.
The project will be modeled on Hydrostor’s commercially operating Goderich storage facility, providing up to 12 hours of energy storage.
Hydrostor’s A-CAES system supports Canada’s green economic transition by designing, building, and operating emissions-free energy storage facilities, and employing people, suppliers, and technologies from the oil and gas sector.
The Honorable Seamus O’Regan, Jr. Minister of Natural Resources, said: “Investing in clean technology will lower emissions and increase our competitiveness. This is how we get to net zero by 2050.”
A-CAES has the potential to lower greenhouse gas emissions by enabling the transition to a cleaner and more flexible electricity grid. Specifically, the low-impact and cost-effective technology will reduce the use of fossil fuels and will provide reliable and bankable energy storage solutions for utilities and regulators, while integrating renewable energy for sustainable growth.
Curtis VanWalleghem, Hydrostor’s Chief Executive Officer, said: “We are grateful for the federal government’s support of our long duration energy storage solution that is critical to enabling the clean energy transition. This made-in-Canada solution, with the support of NRCan and Sustainable Development Technology Canada, is ready to be widely deployed within Canada and globally to lower electricity rates and decarbonize the electricity sector."
The Rosamond A-CAES 500MW Project is under advanced development and targeting a 2024 launch. It is designed to turn California’s growing solar and wind resources into on-demand peak capacity while allowing for closure of fossil fuel generating stations.
Hydrostor closed US$37 million (C$49 million) in growth financing in September 2019.