Beach Petroleum announced that it had entered into an agreement with Tri-Ocean Energy Company under which Beach will acquire a 20% interest in the North Shadwan Concession, located in the Gulf of Suez at a cost of US $110 million.
Beach is pleased to report a waiver of pre-emptive rights has been received from BP. The transaction is still subject to the approval of the Government of the Arab Republic of Egypt and the waiver of pre-emptive rights by the Egyptian General Petroleum Corporation.
The concession contains three undeveloped oil discoveries with Proved and Probable recoverable reserves of approximately 40 million barrels. Several attractive oil exploration prospects are also identified.
If completed, this acquisition will complement the farmins to the South East July and North Qarun concessions announced on May 22, 2008. North Shadwan represents a further step in building Beach’s portfolio in Egypt as part of an overall material expansion of its suite of exploration and production assets.