Santos Ltd announced today that it intends to seek offers for the purchase of the groups oil and gas interests in the United Kingdom.
The interests include up to:
- 32.8% in Anglia (a producing gas field)
- 2.9% in Pierce (oil fields under development
- 1.8% in Banff for production in 1998)
- 13.3% in Block 22/22c (includes the Milburn discovery)
Mr John McArdle, Executive General Manager Commercial, said the group had sought to expand its business in the United Kingdom and had reviewed many opportunities in recent years. However, at the prices required to be the successful acquirer, the group had not found opportunities which provided an acceptable return. Santos has decided to take advantage of the relatively buoyant market conditions for oil and gas interests in the United Kingdom to seek offers for its interests.
Santos existing international Business Unit focussed on the UK and USA would now concentrate on the USA where in early 1997 Santos had been awarded interests in 9 blocks in the Gulf of Mexico. Exploratory drilling in these blocks has already yielded a discovery well – EI 335.
Santos expects the sale process, which will be carried out through Lovegrove & Associates, will be concluded approximately mid-year.