By the OGJ Online Staff
HOUSTON, Nov. 20 -- Santos USA Corp., a subsidiary of Australian company Santos Ltd., has acquired interests in several projects onshore the Texas Gulf Coast from several companies for $28.5 million (US).
The interests include 33% of the Esenjay Exploration Inc.-operated Runnells gas unit, bringing Santos's stake to 62%; 33% of the Ashland Deep prospect, bringing its stake to 63%; 33% of the Triple Play prospect; and 635 net acres of undeveloped land.
The acquisition, effective Sept. 16, includes proved and probable reserves of 15.5 bcf of gas and 700,000 bbl of liquids (200,000 bbl of gas liquids and 500,000 bbl of condensate).
The Runnells project was producing 30 MMscfd of gas and 1,310 b/d of liquids in mid-September.
Before the acquisitions, Santos USA's production was 15 MMscfde.
Managing Director John Ellice-Flint, said, "The area's proximity to infrastructure creates a favorable environment for creating economic value since production can be established quickly. While Santos's previous US activity was relatively minor, we plan to leverage the US experience of the new management team to grow a business in this region."
