Santos Farms into Two Carnarvon Basin Permits (Australia)

Santos announced its acquisition of a 75% interest in the Carnarvon Basin permits WA-323-P and WA-330-P that host Winchester, a large prospect which has a geological setting similar to the recent Zola gas discovery.

The farm-in agreement with Octanex N.L was conditional on various regulatory approvals including renewal of the permits, which have now all been received. Santos Vice President WA & NT, John Anderson, said Winchester presented a significant growth opportunity for Santos in Western Australia, and planning was underway for a 3D seismic survey later this year.

“Under the arrangement with Octanex we have three years in which to drill a well, but we interpret Winchester as a robust prospect so we are considering bringing that forward, possibly by the end of next year,” he said.

“It’s an attractive prospect, in shallow water and if successful, is well located for a variety of development options.”

Under the farm-in, Octanex will be free-carried in respect of its 25% interest through the 3D survey, the first well and other exploration costs, except for any follow-up wells.

Santos is operator of both permits.

[mappress]

Source: Santos, June 10, 2011;