Santos to Acquire Eastern Star Gas

Santos is to buy all of the remaining issued and outstanding ordinary shares of Eastern Star Gas (ESG) that are not already held by Santos and TRUenergy Holdings.

Santos will acquire TRUenergy’s 39 million shares in ESG for A$35m ($37m) under a binding agreement.

Santos will also sell its 20% interest in ESG permits in the Gunnedah Basin, northern New South Wales, for A$284m ($302m) to TRUenergy Holdings.

Pursuant to these transactions, Santos will assume operatorship and own 80% of ESG’s coal seam gas permits, with TRUenergy owning the remaining 20%.

On completion of the transactions, Santos will have the largest natural gas reserves in New South Wales, with 1,216PJ of 2P reserves and 2,238PJ of 3P reserves.