Beach Energy made a payment of A$1.49bn ($1.21bn) to Origin Energy after taking into account a final adjustment of A$87m ($70m).
The company said: “Beach has received the economic benefit of Lattice since 1 July 2017, which is reflected in these adjustments and acquired cash, and includes free cash generation of approximately $155 million in H1 FY18.”
In September 2017, Origin entered into the deal to sell Lattice, to simplify its business, cut down on its debt, and to give better returns to its shareholders.
For the Adelaide-based oil and gas firm Beach Energy, the acquisition of Lattice Energy is expected to help it grow its oil and gas reserves by almost 200% to 232 million barrels of oil equivalent.
With the acquisition completed, Beach will now own the gas assets of Lattice that are spread across the Otway, Perth, Cooper, Bonaparte and Bass basins in Australia. In New Zealand, Beach has added the stakes of Lattice in Kupe gas project and in an exploration permit in the Canterbury Basin.
Origin Energy plans to use the sale proceeds to complete its oil forward sale agreements worth A$266m ($215m) and also to pay down its debt of around A$1bn ($810m). These transactions will be carried out after the company settles a previously announced acquisition by Lattice Energy of Benaris’ stakes in the Otway Basin of worth A$190m ($153.8m).
The company said: “As a result of this transaction Origin expects to record accounting charges of approximately $220 – $240 million, primarily comprising a non-cash post-tax impairment charge of $170 – $180 million as a result of recognising Lattice Energy earnings from 1 July 2017 up to the 31 January 2018 completion date.”
Image: Lattice Energy owns gas assets in various Australian basins including the Otway basin. Photo: courtesy of Origin Energy Limited.
