Santos increases interest in South Nicholson Basin

Cooper EnergyAustralia gas agreement

Santos is officially the 100 per cent owner of the South Nicholson Basin exploration project onshore the Northern Territory and Queensland after it completed a deal with Armour Energy.

Armour announced at the start of January it had executed the sale of its remaining 30 per cent interest in ATP 1087, the application permit areas in Queensland ATP 1192 and 1193, and the Northern Territory tenements EP (A) 172 and 177.

With the completion of the sale and purchase agreement, Armour has received $12.16 million and will re-acquire full ownership and operatorship of ATP (A)1107, which covers 906km2 of the South Nicholson Basin exploration project.

Armour’s net acreage position in the South Nicholson Basin exploration project will now reduce by 35 per cent as a result of the $12.16 million transaction. 

Over the last year, the company has received $33.16 million in cash proceeds in relation to the South Nicholson Basin project, whilst retaining 100 ownership and operator ship of ATP(A) 1107.

When the deal was announced, Armour chief executive officer Brad Lingo said: “Retaining the ATP(A) 1107 application area enables the company to maintain substantial exposure to the unconventional shale gas play it proved-up with the Egilabria 2DW1 directional well, which was the first hydraulically stimulated shale gas well in Australia to flow hydrocarbons to surface.”

Lingo added that the completion of the South Nicholson Basin sale to Santos and the long-term debt reduction was a good way start 2021.

“The company is fully focussed on delivering strategic priorities we outlined in August 2020 – both and the delivering increased production in our core Kincora gas project and debt reduction,” Lingo said.

Send this to a friend