13/02/2015 - 14:26

Beach flags $166m impairment

13/02/2015 - 14:26

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Oil and gas producer Beach Energy has flagged a $166 million writedown on the value of its assets, as a result the dramatic slide in global oil prices.

Beach chief executive Rob Cole.

Oil and gas producer Beach Energy has flagged a $166 million writedown on the value of its assets, as a result the dramatic slide in global oil prices.

In a statement today, the company, which is headed by former Woodside Petroleum executive Rob Cole, said it would incur impairment charges relating to its oil, gas and gas liquids interests in the Cooper basin in South Australia, and would be reducing the value of its Romanian interests to zero, with no further exploration scheduled.

It follows news yesterday that oil and gas producer Santos was facing a $1.6 billion hit to its books for the same reasons at Beach.

The energy company said it had taken impairment charges on a string of production and exploration assets, including in the Carnarvon and Browse basins.

Beach also announced last week that the Kerry Stokes-chaired Seven Group Holdings had acquired nearly 14 per cent of its stock.

Beach shares closed 2.7 per cent higher at $1.11 per share.

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