egolinews.com

Santos Limited (STO) said it has agreed to sell its entire working interest in Evans Shoal in the Bonaparte Basin offshore Northern Australia to Magellan Petroleum Australia Limited for up to $200 million. The company said Magellan would pay a cash consideration of $100 million, with completion expected to occur in the second half of 2010.

In addition, Magellan would also pay $50 million on any final investment decision to develop Evans Shoal and $50 million upon first gas production from NT/P 48.

Santos said the transaction is part of its ongoing review of commercialisation options for its gas assets in the Bonaparte Basin and follows the sale of 60% of the Petrel, Tern and Frigate fields to GDF SUEZ for up to US$370 million announced in August 2009.

Santos vice president Western Australia and Northern Territory, John Anderson, said the company remains well positioned in its Northern Australia LNG business through it interest in Darwin LNG and the Bonaparte floating LNG project.

”Santos also holds a 40% working interest in the Barossa and Caldita fields in the Bonaparte and is considering commercialisation options for these assets”, Mr Anderson said.

The transaction remains subject to customary consents and regulatory approvals.

At the close of trade yesterday, Santos shares were trading at $14.76.

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