Santos Limited
(ASX:STO) and Drillsearch Energy Limited
(ASX:DLS) have formed a joint venture to fast-track the Western Cooper Wet Gas Project.
Santos has acquired a 60 per cent interest in the project, with both companies aiming to bring it to commercialisation and to expand Drillsearch’s Cooper Basin oil reserves and production.
Drillsearch Managing Director Brad Lingo says Santos’ role as operator and JV partner in the project will accelerate the development of wet gas resources.
Mr Lingo says the agreement will strengthen Drillsearch’s balance sheet and increase its oil production potential.
Under the deal, Santos will earn a 60 per cent interest in the Western Cooper Wet Gas Project.
Santos generated a net profit of $518 million in its 2012 financial year.
