From Energy Bulletin news, apologies if some has already...

From Energy Bulletin news, apologies if some has already inserted

The Perth-based junior originally welcomed in Quadrant predecessor, US-based Apache Energy into the Bedout Sub-basin, and has been working with the private owned Aussie since the divestment in 2015 and retains 20%.

Dorado is one four prospects in the area the JV has been assessing.

Carnarvon chief operating officer Philip Huizenga told Energy News late yesterday they'd had no prior warning.

"As far as anyone knew… we heard things in the paper, but it was a corporate deal," Huizenga said, speaking two hours after the deal had been announced.

"From what we've heard there is some consideration for the Dorado certification."

"It's great [the deal], we welcome it."

Carnarvon will now work with a new partner, and one committed to exploration and with the experience to execute development of the 171 million barrel Dorado discovery.

During a conference call immediately after the announcement to market Santos managing director Kevin Gallagher said "the Dorado oil discovery adds to the attractiveness of Quadrant".

He said the deal, which will see Santos absorb much of the Quadrant technical team, would be good for all exploration projects in the Bedout and beyond, as with the exception of 3D Oil no one else holds acreage in the area.

Quadrant's private equity owners, which include Brookfield and Macquarie, may have been less inclined to invest more in exploration than Santos, which is actively looking for organic growth since knocking back the $14.4 billion Harbour Energy bid a few months ago.

"It seems Santos is excited to be in the Bedout… they're planning FEED [front-end engineering and design] in 2020" and with its clout as a much larger company than Quadrant might also be able to get better deals on an FPSO to commercialise the discoveries, Huizenga said.

The takeover further "underlines just how good Dorado is", given it is the third largest oil discovery on the NWS after Barrow Island and Wanea.

"We'll be starting discussions straight away and we'll be working with them as soon as possible,"  Huizenga said