The Australian subsidiary of Chevron (NYSE:CVX) is to purchase stakes in shale gas assets in the country from local concern Beach Energy. The stakes are in two blocks in the Cooper Basin, and they cover a total area of around 810,000 acres. The first, PEL 218, is located in South Australia and the second, ATP 855, is in Queensland.
Upon completion of the transaction, Chevron will hold initial working interests of 30% in the former, and 18% in the latter. Under the terms of the deal, the company could boost those interests to 60% and 36%, respectively.
The investment deepens the company's involvement in Australian energy assets. It is already developing the Gorgon and Wheatstone liquefied natural gas projects in Western Australia.
Depending on how the deal evolves, it could be worth up to $349 million over the course of several years. It is contingent on approval from the relevant regulatory authorities.