New Standard Energy Sells Stake in Cooper Basin Licence to Santos

New Standard Energy on Thursday announced it has divested part of its interest in PEL 570 in the Cooper Basin, South Australia, to Santos.

The move, according to the company, is to significantly reduce its exploration expenditure commitments while retaining exposure to the development of the large and prospective permit and focus on development of its Eagle Ford shale assets in Atascosa County, Texas.  

“We look forward to working with our partners in PEL 570 to prove up the hydrocarbons so we can utilise the existing pipeline infrastructure to supply gas to either domestic or export markets,” New Standard Managing Director Phil Thick said.

New Standard will retain a 17.5% working interest in PEL 570 in return for a cash consideration of $7.5m coupled with a commitment from Santos to meet 75% of New Standard’s remaining expenditure commitments associated with the $42.5m earn-in obligations, of which approx. $0.3m has been spent to date, the company said.

This deal will bring together a powerful consortium of Santos, Magnum Hunter Resources, New Standard and Drillsearch Energy to explore and develop PEL 570, the company added. 

Santos will assume operatorship of the permit.