Santos acquires Spar gas field acreage off W. Australia

Santos Ltd., Adelaide, has purchased a 100% interest in the offshore Western Australian Carnarvon basin retention licence WA-4-R, which contains most of the undeveloped Spar gas field.

Sep 20th, 2008

Rick Wilkinson
OGJ Correspondent

MELBOURNE, Sept. 20 -- Santos Ltd., Adelaide, has purchased a 100% interest in the offshore Western Australian Carnarvon basin retention licence WA-4-R, which contains most of the undeveloped Spar gas field.

Santos has purchased the field from the Chevron Australia-led Gorgon project joint venture, which had decided that Spar was unlikely to contribute to the proposed Greater Gorgon LNG development.

The terms and conditions of the sale are confidential and the transaction is subject to the usual approvals.

Spar field, originally found in 1976 by West Australian Petroleum, has an estimated gas resource of up to 600 petajoules along with some 8 million bbl of condensate. It extends into production licence WA-13-L in which Santos also has a 45% interest.

Santos will now evaluate various development options for the short to medium-term production.

In related news, Santos as a participant in the Barrow Island oil field joint venture, has agreed to an access regime to facilitate the Gorgon JV plans for LNG processing and export from Barrow including a geosequestration of reservoir carbon dioxide into the Dupuy Formation under the island.

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