Santos Ltd. announced today it had reached an agreement with the Northern Territory and Federal Governments (Joint Authority) on a resolution for Santos’ outstanding work program commitments on the NT/P52 exploration permit.
As a result of this agreement, the Joint Authority has confirmed that Santos remains in good standing under the Petroleum (Submerged Lands) Act (PSLA) following the cancellation of the NT/P52 permit.
Santos will spend A$2.3 million on exploration in new permits to compensate for its 37.5% share of the outstanding work commitment in the NT/P52 permit. The exploration activities will consist of seismic acquisition and/or the drilling of exploration well(s) in re-released acreage, that is acreage, which had not been taken up by other explorers during the normal acreage release process. Santos will bid for this re-release acreage at the earliest opportunity.
Arrangements will be consistent with published guidelines on maintaining good standing.