Santos will purchase 100 per cent of Quadrant Energy at a price of $2.92 billion.
The company announced yesterday that the acquisition was part of its continued aim of becoming Australia’s leading domestic natural gas supplier.
The move would increase Santos’ 2P reserves by 26 per cent, up to 220 MMboe, and raise its annual production by 32 per cent, or 19 MMboe.
In addition to Quadrant’s gas developments, Santos will also take hold of the company’s assets in the northwest shelf of Western Australia where the company recently made a significant oil discovery in the Dorado-1 well.
Santos CEO Kevin Gallagher said his company was very familiar with Quadrant and its assets.
“This acquisition delivers increased ownership and operatorship of a high-quality portfolio of low cost, long-life conventional Western Australian natural gas assets which are well known to Santos, and importantly significantly strengthens Santos’ offshore operating capability,” he said.
“It is materially value accretive for Santos shareholders and advances Santos’ aim to be Australia’s leading domestic natural gas supplier.
“We look forward to welcoming Quadrant’s staff to the Santos family and integrating our Western Australian operations.”
Quadrant holds oil and gas assets across more than 52,000 km2 of acreage.