General News
29 July, 2026
License sale boosts Beach revenue
BEACH Energy’s fourth quarter activities report has revealed a $400 million revenue stream, with the company eying a bright future following the sale of rights to oil production off the coast of Port Campbell.
Beach Energy managing director and chief executive officer Brett Woods the result was bolstered following the sale of VIC/L35, the offshore petroleum production licence in the Otway Basin off the coast of Port Campbell, which includes the Artisan gas field.
The sale includes a 50 per cent stake to Amplitude Energy and a further 10 per cent to OG Energy as part of a deal centred around $70 million in cash and ongoing royalties up to $140 million.
“Strong incremental production performance has occurred from the previously suspended Waarre reservoirs, following intervention in the Thylacine West 1 well and the Artisan discovery was successfully completed during the period,” Mr Woods said.
“During the quarter, we announced the sale of VIC/L35 to Amplitude Energy and OG Otway for $70 million upfront cash proceeds and a $3.75/gigajoules production royalty.
“Upon transaction completion, this sale will deliver an immediate capital injection while preserving economic exposure to future Artisan production.
“It also enables Beach to redirect more than $500 million of capital toward higher-return opportunities.”
Mr Woods said a key highlight of the report was it continued the streak of no reportable injuries.
“Beach finished the 2026 financial year with strong operational momentum, delivering quarterly production of 4.9 million barrels of oil equivalent while recording no recordable injuries in the quarter,” he said.
“Achieving a record 18 months recordable-injury free while safely executing major offshore activities, active drilling campaigns in the Cooper Basin and daily operations across all sites, is an exceptional outcome.”
Mr Woods said the result would position the company well into the future.
“Quarterly revenue of $400 million, supported by strong oil pricing and another LNG cargo, further strengthened Beach’s available liquidity to $983 million and a reduction in net gearing to 10.6 per cent, providing financial flexibility,” he said.
“Beyond the quarter, our focus remains on building the resource base that underpins Beach’s next phase of growth.”
Upcoming projects include the Otway nearshore targets, which Mr Woods said will give Beach Energy an organic pipeline with available capital to prioritise higher-return opportunities.
“We look forward to providing more detail with our full year results and financial year 2027 guidance on August 6,” he said.