Santos to buy gas assets in Cooper Basin, Australia

Australian oil and gas company Santos has signed an agreement with Drillsearch to acquire 60% interest and assume operatorship in the PEL106A and PEL513 permits, both located in the Cooper Basin in Australia.

The company will also acquire Drillsearch’s additional 40% share of production in both permits to add to its east coast sales gas capacity.

Santos’ oil exploration acreage in the Cooper Basin will increase with the purchase of 25.835% interest at PEL100 in Western Flank fairway and 50% of Drillsearch’s 66.6% interest and operatorship in the ATP 549P West permit.

In addition, Santos will divest a 29% interest in ATP 299 and associated production licences to Drillsearch, while it will retain 60% interest and operatorship.

Santos Eastern Australia vice president James Baulderstone said that the acquired liquid-rich permits will allow the company to supply additional gas to the Eastern Australian market from 2014.

"The proximity of these resources to the Cooper Basin’s existing infrastructure makes these assets attractive, and demonstrates the importance Moomba’s infrastructure plays in connecting the gas resources in the region to both domestic and international markets," he said.

"Critically, it is this unique position in the Cooper Basin which enables Santos to work with partners such as Drillsearch to accelerate the development and subsequent marketing of gas via its extensive existing infrastructure position."

Santos and Queensland Gas Company have also signed an agreement to support plant operation and efficiency of both LNG projects.

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Image: Santos will acquire Drillsearch’s additional 40% share of production in PEL106A and PEL513 permits in Cooper Basin. Photo: Courtesy of Ruhrfisch.