Gas2Grid farms into Santos' Cooper basin licences
Sydney-listed Gas2Grid’s wholly owned subsidiary GGX Eromanga has executed a binding term sheet to acquire 60% interest each in two of Santos’ licences in the Cooper basin, Queensland, the company said on April 6.
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 said.
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The ATPs will require new work programms and timing as proposed by GGX for the farmin in place of existing work commitments to be lodged with the Queensland department of resources prior to the end of the current work programme period on October 1, with GGX holding a participating interest.
The amendments will be sought under existing government provisions, supported by GGX’s entry into a joint venture with Santos in order to fulfill work commitments. Santos will be the operator of the joint venture.
Upon GGX’s registration on the title of the ATPs it is committed to fund 100% costs to acquire 100 km 2D seismic data, and drill one exploration well to basement or at least 1,800 m. At the appropriate time GGX will seek to raise equity capital to fund the work programme, Gas2Grid said.