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Central to take operatorship, stake from Santos

By  AOG Staff Thursday, 04 June 2015 10:13
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Central Petroleum is acquiring operatorship and 50% interest from Santos Ltd. in the Mereenie oil and gas field located in the Northern Territory’s Amadeus basin, Australia.

Mereenie map. From Central.

Under the agreement Central will pay US$45 million in cash to Santos, structured as $35 million on financial closure of the deal and the balance of $10 million to be paid in June 2016.

The move will significantly increase Central’s operations and enable Central and Santos to maximize the amount of gas available for the proposed Northern Territory-East Coast gas pipeline (NEGI).

This acquisition will increase Central’s oil production to over 500 b/d and contracted gas sales to over 4 PJ/p.a. (equity accounted).

By acquiring operatorship of Mereenie, Central will become the common operator across all three conventional gas fields producing in the Amadeus basin. This creates immediate operating efficiencies and provides employment opportunities in and around Alice Springs by utilizing local services and resources.

The acquisition is subject to regulatory approvals and completion of the expansion to the existing Macquarie Bank debt facility, which are normal for transactions of this nature.

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