Under the terms of the farm-in agreement Beach will earn a 50% interest in the permit by contributing to the cost of drilling the Nampara South-1 exploration well. The well is to be drilled in late 2004 or early 2005 to test the oil potential of the Sawpit Sandstone in a prospect located approximately 25 km to the north-west of Penola.
It is Beach’s third farm-in agreement in as many months and follows joint venture exploration programs reached in April and May with Santos Limited (offshore Western Australia) and Stuart Petroleum (SA Cooper/Eromanga Basin) respectively.
Under the terms of the agreement Beach will assume operatorship of PEL 27.
Interest holders in PEL 27 will be Beach Petroleum 50% (Operator), Origin Energy Resources Limited 16.7% and Origin Energy CSG Limited 33.3%.
