Published by GlobalData
on Sep 5, 2010
, 13 pages
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Santos Ltd. (Santos) completed the sale of its 55% working interest in offshore Spar field (WA-4-R well) to Apache Energy Limited (Apache Energy), an Australia-based oil and gas operating subsidiary of Apache Corporation (Apache), for a consideration of $116m in cash. The consideration includes Apache's initial payment of $31m and an additional payment of up to $85m depending on the level of certified reserves in Spar following the drilling of the Spar 2 appraisal well later this year. The sale will facilitate the development of Halyard and Spar fields. Halyard is expected to be on line in mid 2011 and Spar to follow in late 2012. Production from the combined development is expected to come on line at an initial gross rate of 47.15 MMcf (50 terajoules (TJ) per day) and is then expected to increase to over 94.3 MMcf (100TJ per day) by early 2013 depending on the outcome of the Spar 2 well. Spar is located around 70km due west of Varanus Island, in the Carnarvon Basin, Western Australia. Spar 2 is expected to be drilled approximately 16km from the East Spar Manifold.
- The deal was a strategic Divestment of Santos
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