Stag oil­field sold to Sin­ga­porean group

Pilbara News - - News - Peter Wil­liams

San­tos and Quad­rant En­ergy have closed the $US10 mil­lion ($13.6 mil­lion) sale of the Stag oil­field off the Pil­bara to Sin­ga­pore-based Mi­tra En­ergy.

The deal for the Carnar­von Basin block was struck in July at a hefty dis­count to pre­vi­ous agree­ments with another buyer, which fell through.

Quad­rant will con­tinue as the Stag op­er­a­tor un­der a tran­si­tional ser­vices agree­ment to Oc­to­ber 2017 at the lat­est un­til Mi­tra sub­sidiary Jade­stone En­ergy (Aus­tralia) ob­tains reg­u­la­tory ap­proval.

San­tos had owned two-thirds of the oil­field and Quad­rant the other third. Stag achieved first oil in 1998 and pro­duced about 1.5 mil­lion bar­rels last year.

The part­ners had been try­ing to sell the non-core as­set since last year. They struck a $US50 mil­lion deal 12 months ago with Sona Petroleum, cut­ting to $US25 mil­lion-be­fore the deal col­lapsed.

Mi­tra is listed on the Toronto Stock Ex­change and is ac­tive in South-East Asia. It is ac­quir­ing near-term pro­duc­tion as­sets.

Ex­ec­u­tive chair­man Paul Blake­ley said the pur­chase was a mile­stone for his com­pany, which wanted to be­come a sig­nif­i­cant oil and gas pro­ducer. “Stag will bring pro­duc­tion and cash flows to the com­pany for the first time in its his­tory, as well as a num­ber of ex­cit­ing rein­vest­ment op­tions to cre­ate fur­ther value for share­hold­ers,” he said.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.