Stag oilfield sold to Singaporean group
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.