Santos has purchased 100 per cent of Eastern Star Gas (ESG) shares, and has subsequently sold a 20 per cent working level interest in ESG's permits in the Gunnedah Basin, northern New South Wales, to TRUenergy.


TRUenergy has bought the 20 per cent interest off of Santos for an $A284 million.


The acquisition of ESG builds on Santos’ existing interests in the Gunnedah Basin. Following completion, Santos will have the largest natural gas reserves position in New South Wales, with 1,216 PJ of 2P reserves and 2,238 PJ of 3P reserves.


Santos Chief Executive David Knox said “This transaction represents the next major step in Santos’ eastern Australia gas.


“The acquisition of ESG is a unique opportunity to consolidate our Gunnedah Basin interests in Australia’s next major natural gas province,” Mr Knox said.