Santos Takes 40% Stake in Oz Beehive Prospect

Australia-listed Melbana Energy November 5 said it has been notified by Santos that it exercises its option to acquire a 40% interest in permit WA-488-P, which contains the Beehive prospect.

Melbana has also received notification from Total E&P Australia Exploration that it has decided not to exercise its option to also acquire a 40% interest in the permit. Total’s option, therefore, expires with immediate effect, Melbana said.

As a consequence of Total’s decision, Santos’ option is now modified such that it may now acquire an 80% interest in the permit in return for funding 100% of the costs for an exploration well in the area. Santos has until December 4, 2019, to exercise the modified option, Melbana said.

“If Santos does not exercise this modified option, Santos will not acquire any interest in the permit and Melbana’s interest in the permit will remain at 100%,” it said.

The Beehive prospect, located off the coast of Northern Territory, has been assessed to contain a best estimate prospective resource of 388mn barrels of oil equivalent, Melbana said.