Santos Ltd. has agreed farm-in terms with Bengal Energy Ltd. for a portion of Bengal’s southwest Queensland permit ATP 934 in Cooper-Eromanga basin.
Santos will pay 100% of the costs of a one-well work program estimated at $2.7 million (Aus.) for the right to earn a 60% interest in 420 sq km in the southern portion of the permit. This area offsets recent successful Santos-operated exploration wells.
Santos will be operator of the farmin sector and drilling is expected to begin during second-half 2021, subject to access and rig availability.
The remainder of ATP 934 is not part of the deal and remains 100% Bengal-owned.
Bengal has mapped four prospects in the permit and the company hopes success with Santos will derisk future exploration outside the farmin area. Bengal also plans to reenter and recomplete four historic wells as part of its development plan.
Santos holds 100% interest in five production licenses surrounding ATP 934.
