Santos, Central Petroleum JV to target shale gas in Amadeus basin
SYDNEY -- Santos has bought a slice of Central Petroleum's exploration acreage in the Australian outback, spreading its holdings to more remote locations ahead of an expected surge in natural gas demand from the Asia-Pacific region.
Central Petroleum said Santos would spend up to $155 million carrying the cost of exploring and developing up to 13 permits in the Amadeus basin in Australia's Northern Territory and the Pedrika Basin straddling the same territory and South Australia state. In return, Santos will get up to 70% of the acreage and become operator of the fields.
Central Petroleum retains 100% of some acreage in the Amadeus basin, including the recent Surprise discovery. It didn't provide a drilling timetable for the Santos joint venture, which would target unconventional resources such as shale gas.
Dow Jones Newswires