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 fro 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.
