Origin Energy increases stake in Beetaloo Joint Venture to 70%

Origin Energy has increased its share in the Beetaloo Joint Venture (JV) to 70% following the acquisition of Sasol Petroleum Australia’s 35% share.

Origin CEO Frank Calabria said: “Having recently announced the discovery of a material shale gas resource in the Beetaloo Basin, Origin has seized the opportunity to increase its interest in the Beetaloo Joint Venture by acquiring Sasol’s 35% share.

“Origin would like to recognise Sasol’s contribution to the Beetaloo JV to date, as it departs the JV to focus its capital investment on its African and North American footprint.

The Beetaloo Basin is the Northern Territory’s most prospective onshore basin for shale gas, and the test results estimate the JV’s contingent resource at a substantial 6.6 trillion cubic feet of natural gas.

Calabria added: “Along with joint venture partner Falcon Oil & Gas Australia, we look forward to progressing our understanding of the play and maturing the contingent resources to reserves over time, subject to the outcome of the Northern Territory’s enquiry into hydraulic fracturing.

"Origin would like to recognise Sasol’s contribution to the Beetaloo JV to date, as it departs the JV to focus its capital investment on its African and North American footprint."

“Recent events have demonstrated how crucial it is for Australia to continue to develop its abundant natural gas resources, in order to provide access to a sufficient, affordable gas supply for businesses and homes across the nation.

“As one of the largest natural gas producers on the east coast, Origin will continue to look at opportunities to invest in the safe and responsible development of natural gas resources, such as those in the Beetaloo Basin.

"Gas will play an important role in the transition to a secure, affordable and cleaner supply of energy for Australia.”

The closure of the transaction is subject to the fulfilment of certain conditions.

Origin Energy now has 70% stake in the Beetaloo JV, while Falcon Oil & Gas Australia holds 30% interest.

Situated approximately 500km south-east of Darwin, the three Beetaloo JV permits have an area of more than 18,500km² within the Beetaloo Basin.