Under the MoU, Beach and Rentech will conduct a feasibility study into establishing a facility that could quantify the gas reserves and production rate required to provide fuel feedstock in order to produce commodities such as transport fuels, fertiliser and other commodities.

The study will also attempt to identify the size, scope and costs of operations for the proposed facility.

Beach has been targeting unconventional resources – otherwise known as gas contained within shales and coals – at Roseneath, Epsilon and Murteree, as well as in the Moomba and Big Lake areas of the Cooper Basin, located in South Australia.

Beach was an early entrant into coal seam gas exploration in Australia but is now increasingly involved in researching unconventional gas technology and building international contacts with expertise in the field.