Shares in Santos Limited (ASX:STO) finished last week higher after it inked an asset-swap deal with US-based Magellan Petroleum Corporation (NASDAQ:MPET) for gas fields in the Northern Territory.
Under the deal Magellan will acquire from Santos a 48 per cent interest in the Palm Valley project and a 66 per cent interest in the Dingo field.
Santos will acquire from Magellan a 35 per cent interest in the Mereenie field. Magellan will also receive a $25 million cash consideration as well as possible bonus amounts based on production at the field over the next 20 years.
Both companies have also inked a long-term gas supply and purchase agreement.
At the end of last week shares in Santos rose 2.14 per cent to close at $11.45.
In the 2011 financial year Santos' net profit rose 115 per cent to $504 million.
