Santos to Buy Quadrant Energy for $2.15B
Australian natural gas company Santos announced Wednesday the acquisition of 100 percent of Quadrant Energy for $2.15 billion plus potential contingent payments.
The acquisition will have an effective date of January 1, 2018. Completion is expected by the end of the year and is subject to customary consents and regulatory approvals.
“This acquisition delivers increased ownership and operatorship of a high quality portfolio of low cost, long-life conventional Western Australian natural gas assets which are well known to Santos, and importantly significantly strengthens Santos’ offshore operating capability,” Santos Managing Director and Chief Executive Officer, Kevin Gallagher, said in a company statement.
“It is materially value accretive for Santos shareholders and advances Santos’ aim to be Australia’s leading domestic natural gas supplier,” he added.
“We look forward to welcoming Quadrant’s staff to the Santos family and integrating our Western Australian operations,” Gallagher continued.
Quadrant Energy holds natural gas and oil production, near and medium term development, appraisal and exploration assets across more than 20,000 square miles of acreage, predominantly in the Carnarvon Basin offshore Western Australia.
In a statement posted on Quadrant Energy’s website Wednesday, the company’s Chief Executive Officer, Brett Darley, said he was extremely proud of the whole team at Quadrant Energy.
“We have delivered operational excellence, outstanding results in our exploration program and successfully integrated an entire new business model throughout the company. All of this has been achieved with a strong focus on the environment, and the commitment to the health and safety of our people,” Darley said in a company statement.
“On behalf of Quadrant Energy I would like to say how pleased I am to be part of this agreement with Santos and our business and people are well placed for this exciting new chapter as part of a national and international oil and gas producer,” he added.
Founded in 1954, Santos has offices across Australia and Asia. Quadrant Energy is based in Perth.
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