Santos sells Bonaparte basin permit, hands over operatorship

Santos has agreed to sell its working interest in NT/P 48 (Evans Shoal) in the Bonaparte basin offshore Northern Australia to Magellan Petroleum Australia for up to $200 million.

Offshore staff

ADELAIDE, Australia -- Santos has agreed to sell its working interest in NT/P 48 (Evans Shoal) in the Bonaparte basin offshore Northern Australia to Magellan Petroleum Australia for up to $200 million. Santos has a 40% interest in NT/P 48 and is the operator. The other participants are PETRONAS (25%), Shell (25%), and Osaka Gas (10%).

Magellan will pay a cash consideration of $100 million with an additional $50 million pending any final development investment decision and $50 million upon first gas production.

“The sale of Evans Shoal is consistent with Santos’ ongoing program to monetize certain non-core assets in its expanding business in Western Australia and Northern Territory,” says John Anderson, Santos VP Western Australia and Northern Territory.

The transaction is subject to customary consents and regulatory approvals.

03/29/2010

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