Cooper Energy Completes Acquisition of Santos' Victorian Gas Assets
Cooper Energy has completed the acquisition of all Victorian gas assets of Santos announced October 24, 2016, expect the 10% interest in the Minerva asset, Cooper said January 10.
Santos will get A$61mn (US$45mn) at completion of the deal. It will get a further milestone payment of A$20mn when the Sole gas field final investment decision is made or if Cooper sells down any of the other Victorian assets. Completion of the deal is expected in early 2017. The acquisition is effective January 1, 2017.
The assets sold to Cooper Energy include 50% interest in the Casino-Henry gas project, 50% interest in the Sole gas field and the Orbost gas plant. Cooper was in a 50:50 joint venture with Santos for the Sole gas project. Cooper will also get 10% interest in the Minerva gas field and gas plant and 100% interest in the Patricia-Baleen gas field. Santos’ share of production from these assets in the first half of 2016 was 5.2 PJ of sales gas.
“It is expected that the outstanding conditions precedent (which do not include pre-emptive rights) for the acquisition of a 10% interest in the Minerva gas project and plant will be satisfied in due course at which point Cooper Energy will pay consideration of $1mn to effect completion of that asset. The Minerva gas field is expected to cease operation in the 2017 calendar year,” Cooper said.