Santos Executes Farm-In for McArthur Basin Shale Gas, Oil Resource

Santos has executed a farm-in agreement in the McArthur Basin prospective shale gas and oil resource in the Northern Territory. The farm-in agreement with Tamboran Resources provides for Santos to earn up to 75% in Exploration Permits 161, 162 and 189 and 299 (A), covering approx. 25,000 sq kms.

As per agreement, Santos will immediately earn a 50% operated interest in the four permits by funding a $41 million phase one work program within three years. Upon completion of that program, Santos will have the option to earn a further 25% interest in the permits by funding a $30 million phase two work program including the drilling and testing of two wells. The agreement is subject to the standard regulatory approvals.

Santos has also agreed to acquire a 14% interest in Tamboran for $10 million.