Santos Ltd
(ASX:STO) will sell its entire working interest in Evans Shoal in the Bonaparte Basin to Magellan Petroleum Australia for up to $200 million.
The company says Magellan will pay a cash consideration of $100 million, with the deal expected to be completed in the second half of this year.
Magellan will also pay $50 million on any final investment decision to develop Evans Shoal and another $50 million upon first gas production.
Santos says the deal is part of its ongoing review of commercialisation options for its gas assets in the Bonaparte Basin.
VP Western Australia and Northern Territory John Anderson says the company remains well positioned in its Northern Australia liquefied natural gas (LNG) business through its interest in Darwin LNG and the Bonaparte floating LNG project.
Mr Anderson says Santos also holds a 40% working interest in the Barossa and Caldita fields in the Bonaparte and is considering commercialisation options for these assets.
Santos reported a profit of $434 million in calendar 2009.
