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    Gas2Grid terminates Santos farm-in deal

Summary

The company in April had agreed to acquire 60% interest each in two of Santos’ licences in Queensland’s Cooper basin.

by: Shardul Sharma

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Gas2Grid terminates Santos farm-in deal

Sydney-listed Gas2Grid has terminated an agreement to acquire 60% interest each in two of Santos’ licences in Queensland’s Cooper basin, the company said on September 21. The deal was announced in April this year. 

ATP 1063 and ATP 1174 are located along the eastern edge of the Cooper basin in southwest Queensland, in an area that contains underlying Permian sediments. These two licenses are located approx. 100 km from existing oil and gas production infrastructure.

Gas2Grid’s entry into the joint venture included the commitment to fund 100% costs to acquire 100 km 2D seismic data and drill one exploration well to basement or at least 1,800 m.

“Due to the time frames associated with ATP1063 and ATP1174, Santos and Gas2Grid have agreed the commitments cannot be met and agreed to terminate the proposed farm in,” the company said in a statement.

Gas2Grid said it is continuing discussions to seek alternative farm in opportunities in the Cooper basin.