Oil and gas producer Santos Ltd
(ASX:STO) has acquired significant acreage in the Gunnedah Basin in northern NSW and an investment in local coal seam gas company Eastern Star Gas for $476 million.
Under the transaction Santos will acquire Gastar Exploration’s 35 per cent interest in various exploration permits and production areas in the Gunnedah Basin, operated by Eastern Star Gas, for $300 million.
And the purchase of a 19.9 per cent stake in Eastern Star Gas from Hillgrove Resources for $176 million.
Santos says the combination of Eastern Star Gas operated coal seam gas permits with its own in the Gunnedah Basin will cover a total area of around 63,000 square kilometres, with the source potential of this area estimated to exceed 50 trillion cubic feet. Santos 2008 net profit jumped to a five year high of $1.65 billion.
Metal recycling company Sims Metal Management Ltd (ASX:SGM) has acquired U.S. recycler Fairless Iron & Metal.
Fairless, located in Pennsylvania on the East Coast of the United States, operates two principal facilities including a mega-shredder, non-ferrous recovery systems and a deep water port export facility.
CEO Daniel W. Dienst says Sims looks forward to the many contributions of Fairless to the Sims business in the years to come as the two companies collectively focus on shareholder returns and an unwavering commitment to safety, the environment and the communities in which they operate.
The financial terms of the transaction have not been disclosed, however Sims says the purchase price is not material to the company, saying the transaction will be immediately accretive to the earnings of Sims Metal Management. Sims Metal Management recorded profit of $433.1 million in 2008.
Phosphate company Minemakers Ltd (ASX:MAK) has acquired a 9.64 per cent stake in its soon to be joint venture partner Union Resources from Union shareholder Lundin Mining.
The all-scrip deal involves the issue of one ordinary Minemakers share for every 80 Union shares held by Lundin.
Minemakers has a current takeover bid for Bonaparte Diamond Mines who along with Union each hold a 42.5 per cent stake in a joint venture for marine phosphate evaluation and development in offshore Namibia.
Union made an unsuccessful takeover bid for Bonaparte in April this year. Minemakers has posted a loss in 2007 and 2008.
