The two companies will complete and tie back the Halyard well in WA-13-L, and subject to the outcome of the Spar 2 appraisal well in WA-4-R (Spar), it will quickly complete and tie back Spar as part of this development.
To facilitate the Halyard and Spar development, Santos has sold 55% of its working interest in Spar to Apache for an initial payment of $31m with the potential for additional payments of up to $85m depending on the level of certified reserves in Spar following the drilling of the Spar 2 appraisal well later this year.
Santos will hold 45% equity in both Halyard and Spar, while Apache will hold the remaining equity and will be the operator of both fields.
The transaction is subject to regulatory approvals and is expected to close in the second half of 2010.
