Adelaide-based Santos said that XRG, comprised of the Abu Dhabi National Oil Company, Abu Dhabi Development Holding Company and US private equity fund Carlyle, had tabled an indicative cash offer of US$5.76 a share — equivalent to A$8.89 — which represented a 28 per cent premium to the company’s closing share price last week.

While some brokers said a well-funded backer would accelerate projects in Narrabri and Beetaloo, others are concerned they will suffer as focus drifts elsewhere.

The Abu Dhabi consortium is not the first potential buyer of a company undervalued by Australia's stock exchange and with good gas assets