19 Jan 2011drilling progress report● Neutral
Tap reports Zola-1 (Santos 24.75%) was delayed by a possible cyclone evacuation and sits at 3,839m, with drilling about to resume. No hydrocarbon result yet.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
13 Jan 2011material agreement▲ Good
Epic Energy's owner Hastings notes the GLNG FID satisfies the main condition for its 15-year, 147 TJ/d Santos gas transport deal on the South West Queensland Pipeline. Only financier consent remains, which Hastings calls low risk.
13 Jan 2011investor presentation▲ Good
Presentation accompanying the GLNG FID. It repeats the 7.8 mtpa, US$16bn project and 30% Santos stake, and adds 5,005 PJ of 2P reserves and a Santos IRR range of 11% to 14% on 7 mtpa of binding offtake.
13 Jan 2011material agreement▲ GoodMajor
GLNG partners take final investment decision on the US$16bn, 7.8 mtpa two-train project; Santos's 30% share of capex is US$4.8bn. First LNG is due 2015, a year later than the 2014 earlier expected. Santos expects S&P to affirm BBB+.
12 Jan 2011drilling progress report● Neutral
Tap reports Zola-1 (Santos 24.75%) drilled to 3,839m, with the rig being secured for a possible cyclone evacuation. No hydrocarbon result yet; the main Mungaroo target is expected near 4,300m, with the well planned to 5,000m.
10 Jan 2011contract award● Neutral
GDF SUEZ, operator of Bonaparte LNG (Santos 40%), awards pre-FEED engineering contracts to Granherne and DORIS. FID is expected in 2014 and first LNG in 2018 for a planned 2 mtpa floating project. Early-stage design work; no value stated.
5 Jan 2011drilling progress report● Neutral
Beach's December report: Santos-operated Tirrawarra-78 cased and suspended as a future gas and oil producer, and Cook-15 and Cook-19 suspended as oil producers. Coonatie-15 is drilling. Routine Cooper development drilling, no change to reserves.
29 Dec 2010asset acquisition disposition● Neutral
Magellan has a binding funding commitment from shareholder YEP and has agreed with Santos to extend closing of its purchase of Santos's 40% of Evans Shoal to 31 January 2011. Price is A$100m, with A$15m paid and A$85m due. Earlier expected completion was 2H 2010.
29 Dec 2010drilling progress report● Neutral
Tap reports Zola-1 (Santos 24.75%) has set casing at 3,524m, with drilling on to about 3,976m next. Target depth is now expected in about 22 days. No hydrocarbon result yet.
24 Dec 2010other● Neutral
Santos releases its Securities Trading Policy under Listing Rule 12.9. It sets out insider trading rules and blackout periods. Administrative; no effect on operations or finances.
23 Dec 2010other● Neutral
Drillsearch received A$3.49m from Santos for about 42,959 barrels of its crude held in the Jackson-Moonie pipeline, part of Santos's closure and decommissioning of the pipeline. Mainly a Drillsearch cash item; it shows the Santos pipeline closure is proceeding.
22 Dec 2010drilling progress report● Neutral
Tap reports Zola-1 (Santos 24.75%) drilled 85m to 3,509m over the week, with intermediate casing still to be set. No hydrocarbon result yet; the well is still planned to about 5,000m.
21 Dec 2010other● Neutral
Victoria Petroleum plans a new access road to its Growler field and a drilling campaign from February 2011. It mentions Santos's two ATP 752P wells, Cuisinier-2 and Barta North-1, already drilled. Mostly about Victoria's own assets; no new Santos information.
20 Dec 2010joint venture update● Neutral
Partner Cue says the Sampang JV approved Wortel development: two wells, 10km pipeline to Oyong, US$100m gross, first gas around end 2011. Mid-case recoverable gas is 118 BCF gross. Repeats Santos's 26 November approval.
20 Dec 2010capital raising announcement▲ GoodMajor
Santos completes its heavily oversubscribed institutional placement: about 39.8m shares at A$12.55, roughly A$500m, completing equity funding of its GLNG share. Settlement is 23 December and the trading halt is lifted. This completes the raising announced on 17 December.
What it means for a shareholder
39.8m new shares at A$12.55 to raise about A$500m. That's 4.6% dilution: every existing holder's slice gets 4.6% smaller. If you held A$1,000 of shares (80 at the issue price), your slice goes from 0.00000955% to 0.00000912% of the company. To keep it you'd need 4 more shares - about A$50 at the issue price.
Create a free account to see this worked out for your own holding.
17 Dec 2010contract award● Neutral
Rheochem renews its drilling fluids and engineering services contract with Santos for Australian offshore operations for 12 months, to 31 December 2011. Supplier-side news with no value stated; it follows the onshore renewal on 3 December.
17 Dec 2010material agreement▲ GoodMajor
GLNG signs a binding 3.5 mtpa, 20-year (15 binding plus 5 option) LNG sale to KOGAS, bringing contracted volume to 7 mtpa. Santos sells 7.5% each to KOGAS and Total for A$665m, leaving it at 30%, and raises about A$500m at A$12.55. FID is due by end January 2011.
17 Dec 2010investor presentation● Neutral
Presentation accompanying the 17 December GLNG update and A$500m equity raising. Repeats the KOGAS and Total deals and the placement; the visible text is mostly disclaimers and adds no new figures.
16 Dec 2010other● Neutral
Santos confirms it is in advanced talks with KOGAS but has no definitive agreement, responding to speculation of a 3.5 mtpa LNG purchase and 15% GLNG stake. This follows earlier talks with Asian buyers including KOGAS.
15 Dec 2010drilling progress report● Neutral
Tap reports Zola-1 (Santos 24.75%) drilled to 3,425m after 20-inch casing was set, with intermediate casing point at 3,500m next. No hydrocarbon result yet reported; target depth is still about 5,000m.
10 Dec 2010regulatory community update● Neutral
Drillsearch says it will still proceed with its merger with Innamincka despite the refusal to renew ATP543P, and attaches Innamincka's announcement. Repeats ref 2; no new Santos information.
10 Dec 2010regulatory community update▼ Bad
Innamincka (50% of ATP543P South) says Santos, the permit licensee, was told the Queensland Government refused to renew ATP 543P. An appeal right exists. Its independent expert had valued the interest at a median A$0.1m, so the effect on Innamincka is small.
8 Dec 2010drilling progress report● Neutral
Partner Tap reports Zola-1 (WA-290-P, Santos 24.75%) drilled to 1,701m with surface casing run, one week after spudding. No new result; the well is still planned to about 5,000m in 40-50 days.
3 Dec 2010contract award● Neutral
Rheochem announces it has renewed its contract to supply drilling fluids and engineering services to Santos's Australian onshore operations for three years, with a two-year option. Supplier-side news; no value stated and no direct Santos financial effect.
1 Dec 2010drilling progress report● Neutral
Partner Beach's November report: Coonatie-14 and Tirrawarra-79 (Santos op) were cased and suspended as gas producers. Rain continues to delay Cooper rig moves. Beach's own Encounter-1 shale well is not a Santos asset.
1 Dec 2010drilling result▲ Good
Cuisinier-2 (Santos op) reached 2,037m and was cased and suspended, with up to 7m of potential Murta oil pay and further shows. Commerciality will be decided by cased-hole tests in Q1 2011. Continues the Cuisinier-1 oil field appraisal.
1 Dec 2010drilling progress report● Neutral
Partner ESG's monthly report: Brigalow Park 2 in PEL 238 (Santos 35%) drilled to 753m with 11.6m net Black Jack and 14.7m net Maules Creek coal. Culgoora 2 corehole has spudded. Routine coal appraisal, no reserve change.
1 Dec 2010drilling spud● NeutralMajor
Partner Tap reports Zola-1 (WA-290-P, Santos 24.75%) has spudded. Tap estimates mean recoverable gas of 1.0 tcf with 2.0 tcf upside, with the well planned to about 5,000m in 40-50 days. This is a significant exploration well for Santos.
29 Nov 2010material agreement▲ Good
Sampang partner Cue says the Wortel gas sale contract with PT Indonesia Power is signed. Mid-case recoverable gas is 118 BCF gross. Cue's share of US$100m cost is US$15m. Largely repeats Santos's 26 November approval.
26 Nov 2010material agreement▲ GoodMajor
Santos approves development of the Wortel gas project in the Sampang PSC (Santos 45%, op) at US$100m gross, with first gas by end 2011. Gas goes to PT Indonesia Power; Santos's share of 2P reserves is about 8 mmboe. This follows the Wortel 2011 plan.