By Ross Kelly
SYDNEY--Beach Energy Ltd. (BPT.AU) said Wednesday it may sell
infrastructure assets such as natural gas processing facilities and
pipelines to protect its balance sheet from tumbling oil
prices.
Beach also said it would attempt next year to find a new partner
to develop its shale-gas prospects in the Australian Outback after
Chevron Corp. (CVX) recently decided to abandon a joint
venture.
In a slideshow presentation, the Adelaide-based company said it
is considering the "monetization potential" of strategic Australian
infrastructure assets. Assets that could be considered for sale
include the company's 20.2% stake in the Moomba natural gas
processing facility operated by Santos Ltd. (STO.AU) in central
Australia, pipelines running from Moomba-to-Port Bonython, and
gas-storage capacity.
The presentation is part of a national roadshow introducing new
Beach Chief Executive Rob Cole to investors. Analysts expect the
former Woodside Petroleum Ltd. (WPL.AU) executive to focus more on
Beach's conventional oil and gas assets in central Australia's
Cooper Basin. On Wednesday, the company confirmed it's still trying
to sell its Egyptian oil assets, while noting that acquisition
opportunities exist "close to home".
As for its shale-gas prospects, Beach said it would conduct a
technical review of previous drilling results later in the year
before planning a potential second phase of drilling next year.
Beach would "seek to re-partner" once the scoping study was
complete, it said.
Write to Ross Kelly at ross.kelly@wsj.com
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