Drillsearch signs gas sale agreement with SACB

Drillsearch Energy has signed a gas sale agreement with the South Australian Cooper Basin (SACB) Joint Venture for the commercialisation of the Middleton and Brownlow gas discoveries in Australia.

Under the terms of the agreement, PEL 106B JV, which is held by Drillsearch Energy and Beach Energy, will sell raw, untreated gas consisting of condensate, LPG and sales gas, and will be paid for each component.

The gas sales will begin on completion of the commissioning of the production facilities.

Drillsearch Energy has finished the construction of the Wet Gas Pilot project and will start production in December 2011.

The project covers the installation of surface production facilities at the Middleton and Brownlow discoveries, and a raw gas pipeline gathering system at the SACB Moonanga gas field.

The new pipeline is owned by the PEL 106B JV and is operated by Beach Energy.

Drillsearch and Beach Energy will carry out a five well drilling programme, with four wells in PEL106B and one well in PEL 107.