Mar 10 - Origin Completes Otway Gas Project Acquisition

Source Press Release
Company Origin Energy LimitedWoodside Petroleum Limited 
Tags Deals, Upstream Activities
Date March 16, 2010

Origin Energy Limited, Australia’s leading integrated energy company, today increased its interest in the Otway Gas Project to 67% following completion of the acquisition of an additional 36% interest from Woodside Energy Ltd. The acquisition was undertaken through its subsidiary Origin Energy Resources Limited.

The acquisition was initially announced in November 2009 with an effective date of 1 July 2009. The purchase price has been adjusted for the estimated net impact of capital expenditure, operating costs and earnings to completion, taking the price to $520 million. This is subject to a further adjustment on the settlement of final joint venture accounts up to the completion date.

Commenting on the acquisition Origin’s Managing Director, Grant King said, “We are pleased to increase our interest in this project as the asset and surrounding exploration acreage is well known to us and complements our retail, generation and upstream interests across the region.

“The acquisition includes production licenses which contain the Thylacine and Geographe fields and associated offshore production facilities, pipelines and onshore gas processing plant, together with adjacent exploration permits.

“The increased interest provides additional earnings from sales of natural gas, LPG and condensate extracted from the liquids-rich gas stream, as well as providing greater access to the growth potential and exploration upside of the area.

“This complements our existing operations in the Bass Basin province to the east where we have recently had success with appraisal of the liquids-rich Trefoil field and discovery of gas and oil in the Rockhopper field,” Mr King said.

Benaris International Pty Ltd (“Benaris”) also acquired a portion of Woodside’s interests in the area after exercising pre-emption rights. Post completion interests in the Otway Gas Project are as follows:

    Origin  Benaris  CalEnergy 
Development Joint Venture  67.23%  27.77%  5.00% 
Exploration Joint Venture (T/30P and VIC/P43)  67.23%  27.77%  5.00% 
Exploration Joint Venture (T/34P)  82.30%  12.70%  5.00% 
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