On 3 November 2017 Key Petroleum Ltd reported that its purchase of Beach Energyâs interest in ATP 783-P, ATP 920-P and ATP 924-P, located in the Cooper Basin, had been officially registered by the Queensland Department of Natural Resources and Mines (DNRM).Â  Key reported that it will now commence discussion with the DNRM around the work programme assigned to the permits, which will focus on conventional gas exploration within the Permian gas fairway. The deal, which was completed via Keyâs subsidiary company Key Cooper Basin Pty Ltd, was reported to have been finalised between the companies on 28 June 2017.Â  The agreement was first announced on 22 February 2017.  Beach had been offering equity in the permits as part of a farm-out offer but under the agreement, Key has agreed to purchase 100% interest for an immediate payment of AUD 125,000, plus a royalty of 1.5% of the wellhead value for all future petroleum produced, to Drillsearch Energy (a subsidiary of Beach). The finalisation of the transaction now remains only subject to Ministerial approvals. Beach currently participates in 442 permits and licences within the Cooper-Eromanga Basin and is the operator in 108 permits and licences. Upon completion of the deal, Key will be entering the basin for the first time at low cost. Key currently operates in the Canning and Perth basins and has been seeking opportunities to expand its portfolio to add value to the company. Beach Energy currently holds 100% interest in all three permits which cover a total area of 6,764 sq km. The permits have little time remaining before renewals must be approved as they were scheduled to expire in February 2017 (ATP 920-P, and ATP 924-P) and May 2017 (ATP 783-P). Only one well has been drilled during the validity periods: Maroochydore 1, in ATP 924-P, which was plugged and abandoned in November 2015 with oil shows. A five well drilling campaign formed part of the work commitments between 2013 and 2017 along with two in ATP 783-P and five in ATP 920-P. Key reports that a number of leads and prospects across the permits have been mapped from seismic data facilitating an exploration strategy over the remaining permit terms.  Key Petroleum Ltd has completed purchase agreement with Beach Energy for three Cooper-Eromanga Basin permits. Once the transaction has been fully approved, Key will hold 100% interest in ATP 783-P, ATP 920-P and ATP 924-P.
Key Petroleum reported that its purchase of Beach Energyâs interest in ATP 783-P, ATP 920-P and ATP 924-P.