Beach Energy Invests in Adelaide Energy

Beach Energy Ltd has  announced a strategic alliance with Adelaide Energy Ltd., through a potential investment of $12.1 million via a placement of both shares and options in the company.

Beach and Adelaide Energy are currently in joint venture in the Nappamerri Trough acreage of PEL 218 (Beach 90%, Adelaide Energy 10%) and ATP 855P (Beach 40%, Adelaide Energy 20%, Icon Energy Ltd 40%). As a result of the success to date in the Nappamerri Trough, this alliance between Beach and Adelaide Energy will ensure further expansion of activities for both parties to develop the significant gas resource identified to date.

Beach will subscribe for 14 million shares in Adelaide Energy at a price of 16.5 cents and nominate a new director to its board. At a forthcoming General Meeting of Adelaide, shareholder approval will be sought for the issuance to Beach of a further 59.5 million shares in Adelaide Energy; and the granting to Beach 75 million unlisted options, at an exercise price of 40 cents, exercisable by 30 June 2016;

Upon approval from Adelaide Energy shareholders, Beach will own 19.95% of Adelaide Energy’s issued share capital.

Beach Managing Director, Mr Reg Nelson said, “This alliance between Beach and Adelaide Energy makes a lot of strategic sense for both companies and continues Beach’s strategy of putting a foothold on what is turning out to be Australia’s pre-eminent shale gas province, the Cooper Basin.”

Source: Beach Energy