Cooper Energy has completed the acquisition of Victorian gas assets from Australian oil and gas producer Santos.
The acquisition does not include a 10% interest in the Minerva asset.
For this acquisition, Cooper Energy has paid an initial $61m consideration with working capital adjustments to Santos.
The $20m conditional consideration will be payable prior to the final investment decision for the Sole Gas Project or if Cooper Energy decides to sell any of the Victorian assets.
Under the transaction, Cooper Energy acquired a 50% interest in the producing Casino-Henry gas project and the retention licences VIC/RL11, VIC/RL12 and VIC/P44 exploration acreage all located in offshore Otway Basin.
It has also acquired the remaining 50% interest in the Sole Gas Project and Orbost Gas Plant in the Gippsland Basin, thereby gaining full ownership.
It has also purchased a 100% interest in the exhausted Patricia Baleen gas field in the Gippsland Basin.
The acquisition became effective on 1 January.
The company expects that all outstanding conditions precedent excluding pre-emptive rights, the acquisition of the 10% interest in the Minerva Gas Project will be completed soon.
After completion, Cooper Energy needs to pay a $1m consideration for this acquisition.
The Minerva gas field is expected to terminate its operations by this year.
The company predicts to produce 1.6 million barrel of oil equivalent (boe) this year, of which only 0.1 million boe will be contributed by Minerva gas field.
The ownership transfer for the acquired properties has already started and is expected to be completed later this year.
Cooper Energy is an ASX listed exploration and production company that focuses on supplying gas to the south-east Australia and produce low-cost oil from the Cooper Basin.
Image: Acquired offshore assets. Photo: courtesy of Cooper Energy.