Under the original farm-in deal, Beach earned a 40% interest in the Dalby block by spending $35 million on the Tipton West development.
As part of the old agreement, Beach was granted three options to earn 40% of ATP 689P and up to 40% in each of the Dalby South and Millmerran Blocks in ATP 683P, by spending $7 million on exploration and appraisal funds.
Beach’s current involvement comprises the first tranche of that spending. Over the next two years, the company will decide whether to spend $2 million in each of the second tranches.
Arrow told the Australian Stock Exchange this morning that the Dalby South farm-in would involve further appraisal of the highly prospective Meenawarra field in that block.
The four wells drilled to date at Meenawarra have exhibited a good Walloon Coal section with attractive gas contents, according to Arrow.