Australian oil and gas producer Santos showed it had emerged from survival mode with a flourish, by inking an agreement to buy West Australia-based Quadrant Energy for $2.15 billion.
The deal includes a contingent payment in relation to the recent significant Dorado-1 oil discovery and a royalty over all other future hydrocarbons produced in Quadrant’s Bedout Basin tenements, the companies said in a statement on Thursday.
Santos is paying a slight premium to consultancy Wood Mackenzie's valuation of Quadrant Energy's production portfolio, but the Dorado discovery offers material value upside on the deal.
Key drivers for Santos include rebalancing its...
¬ Haymarket Media Limited. All rights reserved.
