Drillsearch has signed a $120 million joint venture deal giving Santos a 60 per cent stake in the Western Cooper Wet Gas project.

Drillsearch said the set of agreements aimed to accelerate Western Cooper Wet Gas commercialisation and expand Drillsearch’s Cooper Basin oil Reserves and production near the border of South Australia and Queensland.

Santos has committed to fund a work program valued by Drillsearch at $100-120 million to accelerate wet gas commercialisation, the company said.

At the close of trade Drillsearch shares were one cent lower at $1.37 and Santos shares were eight cents lower at $14.91.