Real Inks Deal with Santos for Oz Gas Commercialisation

Real Energy has signed binding agreements with Santos and Beach Energy for use of their gas processing facilities at Moomba in South Australia, as well as gas transportation and tie-in at Mount Howitt, the company said October 15.

“The signing of the gas processing agreement allows us to commercialise our gas without the need to build an expensive gas plant and other associated infrastructure. These are significant agreements that potentially add considerable value to Real Energy, not to mention the fact that these are major de-risking events for our project,” Real Energy’s managing director Scott Brown said.

“Real Energy is very well-placed to take full advantage of the growing demand for Australian east coast gas, and these agreements, together with the upcoming flow rates for Tamarama-2 and Tamarama-3, will build on the excellent results we have received to date at our 100%-owned ATP927P acreage. We look forward to moving our gas project into production,” he added.

Real Energy’s Windorah Gas Project, which the agreements pave the way for commercialisation of its gas, has a 3C gas resource of 672 billion feet³, assessed by an independent geologist, Real said.

The agreements remain subject to condition precedents including Real receiving regulatory approvals, access rights allowing pipeline connections, entering unconditional gas supply arrangements, and final investment decision. The commercial terms are confidential.

Real is an oil and gas exploration and development company, which focuses on the Cooper Basin – Australia’s most prolific onshore producing petroleum basin.