Beach: $140m Egypt Writedown

Australian independent Beach Energy has taken an A$148.6mn (US$139mn) impairment on its Egyptian assets with the relinquishment of two exploration blocks as it looks to “refocus capital allocation”.

“We want to ensure efficiency in capital allocation over the medium term. As part of that, we have looked critically at Egypt… we want to start focusing on reserves producing revenue and profitability as the key drivers,” the firm’s Managing Director Reg Nelson says.

As part of this the frontier Mesaha block in Upper Egypt, operated by Petroceltic, has been relinquished following a single unsuccessful well in early 2013, as has the exploration portion of the BP-operated North Shadwan block in the Gulf of Suez. Beach’s two remaining Egyptian exploration assets are the Abu Sennan concession in the Western Desert (operated by Kuwait Energy) and Dana Petroleum-operated El-Qa’a plain on the Sinai Peninsula. (CONTINUED - 145 WORDS)