Sona Petroleum has agreed to buy the Stag oil field off the coast of Australia from Santos and private equity firm Quadrant Energy in a $50million deal.
Santos had been looking to sell its two-thirds stake in the field before it put all its assets up for stake three months ago.
Last month Santos had rejected a $5billion takeover offer in the hopes of getting better value from selling assets.
Joe Ariyaratnman, Santos’ general manager for Western Australia and Northern Territory, said Stag had delivered a “strong production performance over the life of the field”.
Wood Mackenzie valued Santos’ stake in the field, which as of June was producing 4,600 barrels a day, at $13 million.
Sona plans to pay for the acquisition from cash it raised in its initial public offering two years ago.
It expects to extend the life of the Stag field, producing since 1998, by adding new wells to boost oil recovery and has agreed to take over environmental liabilities which kick in at the end of the field’s life.