Santos, Drillsearch reach deal

Energy groups satisfy due diligence conditions for Western Cooper Wet Gas project.

Drillsearch Energy (DLS) and Santos (STO) have formalised their joint venture in the Western Cooper Wet Gas project.

In a statement to the Australian Securities Exchange, Drillsearch said mutual due diligence conditions for the transaction have been satisfied and the group expects the partnership will deliver a material result.

Santos has acquired a 60% interest in the project and committed to fund a $100 million to $120 million program to accelerate wet gas commercialisation (see Santos' cash pipeline).

Drillsearch said it has secured a firm gas sales agreement for production at the project.