Origin can now proceed to acquire the exploration and production interests in full including a 90% interest in EP 154(a) and (b), 100% of EP153 and commensurate interests in several production permits, all pipeline infrastructure and the Heytesbury processing facility.

The tenements are contiguous with Origin's existing production licence PPL 8, surround the area of the Iona gas storage facility, and cover the geographic area in which the Thylacine, Geographe, Minerva and Casino gas discoveries in the offshore Otway basin will be brought ashore and processed.

The SEA Gas pipeline to Adelaide in South Australia and the South West pipeline to Melbourne also emanate from this area.

Net production out of these fields is approximately 15 terajoules per day (TJ/d), with proved and probable (2P) reserves of approximately five petajoules (PJ). The exploration tenements cover around 1,900sq.km.

In addition to the value associated with the production and exploration acreage, Origin attributes value to the potential of the depleted fields for gas storage operations.

Santos has been producing natural gas from the onshore Otway Basin for Victorian industrial, commercial and residential customers since 1999. The sale of these assets continues Santos' divesture of non-core assets to focus on growth areas such as offshore Otway and Western Australia, Indonesia, Timor Sea, the USA, the Middle East and North Africa.