1 Aug 2012admin correction● Neutral
Amended version of Beach's July drilling report. The only apparent change is that Halifax-1 is now expected to spud on 2 August rather than having spudded on 1 August. Not a Santos-specific item.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
30 July 2012drilling spud● Neutral
Drillsearch reports the spud of Bauer-7 (its own PEL 91 well) and Olive Oyl-1, a Santos-operated exploration well in the Tintaburra Block of ATP 299 (Santos 89%, Drillsearch 11%) in the Cooper Basin.
19 July 2012quarterly activities report▲ Good
Q2 2012 production rose 9% to 13.0 mmboe and sales revenue 18% to A$739m, with best oil output in four years. 2012 production guidance of 51-55 mmboe is kept, but DD&A guidance rises from $14 to $15/boe on higher abandonment costs. Dua oil field in Vietnam sanctioned.
19 July 2012contract award● Neutral
Contractor WDS announces a A$24m construction services contract with Santos for the GLNG upstream project, covering gathering systems for Fairview coal seam gas wells. Small contract, a supplier announcement rather than a Santos one.
13 July 2012drilling result▲ Good
Santos's Cuisinier North-1 exploration well in ATP 752P found a 5.0 metre gross oil column with 2.0 metres net pay and will be suspended as a future producer. It completes the four-well Barta Block campaign, all four wells finding oil.
4 July 2012drilling result▲ Good
Senex reports Santos's Cuisinier-6 well in ATP 752P found a 5.6 metre gross oil column (3.8 metres net pay) and was suspended. Third of four Barta wells. Santos holds 45% and Senex 15%. Also covers Senex's own Snatcher-5 well.
28 June 2012material agreement▼ BadMajor
Santos raises GLNG capital cost from US$16bn to US$18.5bn to end-2015 by bringing forward US$2.5bn of upstream spending (about 300 extra wells); its 30% share is US$750m. Santos says first LNG stays 2015 and it will not raise new capital.
28 June 2012investor presentation● Neutral
Presentation repeating the GLNG capex rise to US$18.5bn (+16%), with Santos's net share US$750m, first LNG still 2015, and funding from A$7.3bn existing capacity. Adds that 70% of costs are in A$, and that A$/US$ was 1.01 on 28 June.
22 June 2012drilling result▲ Good
Partner Senex reports Santos's Cuisinier-5 appraisal well in ATP 752P found a 12.8 metre gross oil column, with 2.0 metres net pay, and was suspended as a future producer. Cuisinier-6 is next. Continues the Barta Block appraisal run; Senex holds 15%.
21 June 2012other● Neutral
Comet Ridge buys Petrel Energy's Gunnedah Basin permits (PEL 6, 427, 428) for A$750,000. Santos holds the remaining interests from its 2011 Eastern Star purchase, leaving only Comet Ridge and Santos in that area. Not a Santos transaction; subject to consents.
14 June 2012investor presentation● Neutral
UBS conference presentation on Santos's LNG-linked growth. It repeats known points: Caldita Barossa with SK E&S (Santos 25%, up to US$520m carry), Bonaparte LNG FID 2014, first GLNG LNG 2015. New detail: Crown well in Browse Basin planned 2H 2012, Santos 30% operator.
7 June 2012farm in farm out agreement▲ GoodMajor
Santos, with ConocoPhillips, agreed to let SK E&S earn 37.5% of Caldita and Barossa, cutting Santos's interest from 40% to 25%. SK funds the first US$260m of a three-well appraisal program from 2013, plus up to US$90m for pre-FEED and FEED, and up to US$110m on FID and first cargo.
6 June 2012drilling result● Neutral
Beach's May report covers Cooper Basin wells. In Santos-operated work, Tindilpie-17 gas well was suspended as a future producer, Cook-22 was abandoned with no commercial oil, Cook-23 was suspended as a future producer, and Charo-13 to 15 were suspended. Santos's own stake is not stated.
6 June 2012production update▼ Bad
Partner Nexus says Santos, operating the Patricia-Baleen gas processing facility, has suspended production after repeated electrical faults. The fault location is unknown and a vessel is due in the field on 15 June. Production reliability had averaged 98% since October 2010.
5 June 2012drilling result▲ Good
Partner Senex reports Santos's Cuisinier-4 appraisal well in ATP 752P hit a 23.4 metre gross oil column, with at least 9.4 metres of net pay. It was suspended as a future oil producer. Cuisinier-5 is due to spud in the week of 11 June. Senex holds 15%.
31 May 2012asset acquisition disposition● Neutral
Magellan's press release on the completed swap with Santos. Santos now owns 100% of Mereenie. Magellan gets about A$25m net cash and a 17-year contract to sell Palm Valley gas to Santos, which has resold it to a mining customer. Same deal as the filing.
31 May 2012asset acquisition disposition● NeutralMajor
Magellan's filing says the asset swap with Santos completed on 25 May, effective 1 July 2011. Santos takes Magellan's 35% of Mereenie for A$28.0m and gives up its Palm Valley (48%) and Dingo (66%) stakes. Magellan may earn up to A$17.5m in bonus payments over 20 years.
25 May 2012production update▼ Bad
Beach says Santos, as operator, will permanently shut the Tantanna to Gidgealpa oil pipeline on 1 June because of integrity concerns. A new 15,000 bopd Lycium Hub to Moomba line is expected in Q4 2012. Beach expects its western flank output to drop meanwhile.
22 May 2012drilling spud● Neutral
Partner Senex reports Santos has begun drilling the Cuisinier-4 oil appraisal well in ATP 752P in the Queensland Cooper Basin, targeting 1,759 metres. It is the first of three appraisal wells and one exploration well planned for the Barta Block. Senex holds 15%.
15 May 2012investor presentation● Neutral
Investor briefing by Santos business unit heads. It repeats known points: record Q1 Carnarvon gas of 16.7 PJ, Fletcher Finucane A$490m project with first oil 2H 2013, and Bonaparte LNG FID 2014. New detail: a 4% sell-down to Kufpec leaves Santos at 44% effective interest in Fletcher Finucane.
7 May 2012security holder rights change● Neutral
Santos lodges its revised Constitution, as approved by shareholders at the 3 May AGM. The text shown is the document itself and the provided portion does not describe what changed. Administrative filing.
3 May 2012agm notice● Neutral
All AGM resolutions passed, including re-election of Borda and Franklin, the remuneration report, CEO Knox's share rights and termination benefits, and constitution changes. Against votes on pay-related items were roughly 3-4% of votes cast on the polls.
3 May 2012other● Neutral
Chairman's AGM address (truncated) calls 2011 a strong year, backs the Gladstone LNG project and says Santos is placed to fund growth. It cites ACIL Tasman modelling of NSW gas shortages from 2017 and an initial A$20m upgrade of Eastern Star's sites. Repeats known facts.
2 May 2012material agreement▲ Good
Origin Energy announces a binding agreement to supply GLNG with 365 PJ of gas over 10 years from 2015, at 100 TJ/day at Wallumbilla. This is the counterparty's release on the same deal Santos announced.
2 May 2012drilling result● Neutral
Beach's April report covers Cooper Basin wells. In Santos-operated work, Tindilpie-16 gas well was cased as a future producer, Cook-20 and Cook-21 oil wells were suspended as future producers, and Charo-11 and Charo-12 were suspended. Santos's own stake is not stated.
2 May 2012contract award▲ GoodMajor
The GLNG partners signed a binding agreement to buy 365 PJ of gas from Origin over 10 years from 2015, at 100 TJ/day at Wallumbilla on oil-linked pricing. It adds to Santos's earlier 140 TJ/day supply to GLNG; Santos holds 30%.
23 Apr 2012material agreement● Neutral
Hastings Diversified Utilities Fund, subject to a takeover bid by APT, says it signed a new take-or-pay agreement with Santos on the South West Queensland Pipeline worth about A$400m in total revenue. Santos is the customer; the text gives no detail on its terms.
19 Apr 2012quarterly activities report▲ Good
March quarter production was 12.4 mmboe (up 13%) and sales revenue A$754m (up 50%), helped by Wortel, Spar, Reindeer and Chim Sáo. 2012 guidance is unchanged at 51-55 mmboe. Fletcher Finucane FID and the first GLNG concrete pour are noted.
18 Apr 2012regulatory community update▼ Bad
Partner Carbon Minerals says Gunnedah work in PELs 1 and 12 (Santos 65% operator) has been halted since late 2011 amid NSW government review. It cites Santos-commissioned research on gas supply and hopes to restart for reserves bookings by June 2013. Submissions on land plans close 3 May.
4 Apr 2012drilling result● Neutral
Beach's March drilling report covers Cooper Basin wells where Santos operates the joint venture. Tindilpie-15 gas well was cased as a future producer, Bullamakanka-1 oil well was dry, and Charo-10 hit the target oil reservoir. Santos's own stake is not stated.