ADELAIDE, Australia – Santos has agreed to pay $2.15 billion plus conditional payments to acquire Australian E&P company Quadrant Energy, which recently discovered the mid-size Dorado oil field in the Bedout basin offshore Western Australia.
Assuming regulatory approvals, the purchase would be fully funded from Santos’ existing cash resources and new committed debt facilities.
The deal, the company said, advances its aim of being Australia’s leading domestic natural gas supplier, lifting its 2P reserves1 by around 26% to 220 MMboe and its annual production by around 32% to 19 MMboe, with upside through further synergies, near-term developments and exploration.
Managing Director and CEO Kevin Gallagher said: “This acquisition delivers increased ownership and operatorship of a high-quality portfolio of low cost, long-life conventional Western Australian natural gas assets which are well known to Santos, and importantly significantly strengthens Santos’ offshore operating capability.”
Quadrant has natural gas and oil production, near- and medium-term development, appraisal and exploration assets across more than 52,000 sq km (20,077 sq mi) of acreage, mainly in the offshore Carnarvon basin.
It also holds a large inventory of discovered resources to backfill existing infrastructure and a leading position in the Bedout basin.