Drillsearch, Santos Sign Gas Agreement

Drillsearch Energy has entered into an agreement with Santos to accelerate Western Cooper Wet Gas commercialisation and expanding Drillsearch’s Cooper Basin hydrocarbon reserves and production.

Under this transaction, Santos will earn a 60% interest and operatorship in the Western Cooper Wet Gas Project (PEL 106A and PEL 513). PEL 106A and PEL 513 contain conventional 2C wet gas resources of approximately 62 bcf (gross) over six discoveries, conventional wet gas prospective resources over 100 bcf (Best estimate) and additional unconventional gross prospective resources of over 7 tcf (Best estimate).

Additionally, Drillsearch has entered into a firm Gas Sales Agreement covering expected production from PEL 106A and PEL 513 through 2025. The GSA will be for the sale of raw gas with separate pricing for the condensate, LPG and sales gas components.

“The gas pricing is structured to maximize the alignment between Drillsearch and Santos, both as a joint venture partner and as gas buyer,” Drillsearch said.