What’s weighing on Beach Energy (ASX:BPT) share price today

June 20, 2022 08:30 PM AEST | By Sonal Goyal

What’s weighing on Beach Energy (ASX:BPT) share price today — Image source: © Pichitbo | Megapixl.com

Details of the Bass basin update shared by Beach Energy

According to the announcement, Beach Energy has detected an infield opportunity in Yolla West. It is a fault block identified after seismic re-processing over the Yolla field. Reportedly, the new fault block is drillable from the existing Yolla platform.

If drilling reports favourable results, Yolla West might connect to the Lang Lang Gas plant. Also, if the company succeeds, the Lang Lang Gas plant would return to capacity production rates of 67 terajoules per day and extend Yolla’s field life.

Image source: © Route66 | Megapixl.com

In a statement, Beach Energy said that the company has now prioritised the Yolla West development, which represents a lower cost, higher return, with near term investment opportunity.

The ASX-listed energy firm informed the market that it is negotiating to secure a rig for Yolla West. The company intends to begin drilling by 2022/23 summer, which is subject to securing a rig and receiving joint venture and regulatory approvals.

The shareholders can expect the cost estimates in August 2022.

Management commentary

On the development, chief executive officer of Beach Energy, Morne Engelbrecht said,

Related article: Beach Energy (ASX:BPT) appoints new acting Chief Executive Officer

Projects affected by the new Yolla West

With the identification of the new fault block, a final investment decision for Trefoil has been postponed from its original timing, the first half of the fiscal year 2023. With this, the company will get extra time to refine the cost-effective development alternatives, complete a prion 3D seismic survey and benchmark the investment in Trefoil against other growth opportunities in the company’s portfolio.

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