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Santos moves to take stake in Beehive, Australia

Written by  OE Staff Tuesday, 12 December 2017 03:51

Australia's Santos has agreed to partly fund and lead a new 3D seismic survey over the beehive prospect in Australia's Bonaparte Basin in return for an up to 80% farm-in option in the permit.

Santos calls Beehive, which sits on the WA-488-P permit, adjacent to the Blacktip production infrastructure and within reach of the Ichthys infrastructure, an "exciting prospect." 

It's proximity to existing infrastructure could provide options for early commercialization of any discovery, says Santos, which is acquiring the option from Melbourne-based Melbana Energy.

Funding and execution of the 3D seismic survey over Beehive will give Santos the right to earn up to an 80% interest in WA-488-P through the subsequent funding and completion of an exploration well.

Santos Executive Vice President Exploration & Appraisal Bill Ovenden said the transaction puts the company in a good position to boost its strategic acreage position in offshore Northern Australia.

“The Beehive prospect is a large undrilled structure with great hydrocarbon-bearing potential and, being immediately adjacent to the Blacktip facilities and within reach of Ichthys infrastructure, a commercial discovery could be quickly delivered to market,” he said.

“This option adds to our diverse portfolio of core production, appraisal and exploration assets in Northern Australia, including our foundation interest in Darwin LNG and the Barossa field which is the leading candidate to backfill Darwin LNG as Bayu-Undan comes off plateau in the next few years.”

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