Deal includes $70m cash and potential $140m in royalties over the field’s lifetime, valuing the stake at $130m post-tax.
Beach Energy will divest its 60% operated stake in the Otway Basin’s VIC/L35 licence to Amplitude Energy and O.G. Otway for $50.18m in cash. The transaction also includes a $3.75 per gigajoule royalty on 60% of gas produced, capped at 62 petajoules or until June 2036, potentially totaling $140m.
The Artisan gas discovery, located 30km offshore Victoria, was granted production licence status in September 2024. Amplitude Energy will acquire a 50% interest, while O.G. Otway will take 10%, with O.G. Otway already holding a 40% stake. The deal values Beach’s divested share at approximately $130m post-tax.
Completion is expected in Q1 of Beach Energy’s 2027 financial year, pending regulatory approvals. Amplitude Energy will fund its $58.3m share of the upfront payment using existing resources.