Past year: ▲ 35%(6.17 – 8.62 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
24 Nov 2010farm in farm out agreement▲ GoodMajor
Santos farms into Octanex's WA-323-P and WA-330-P in the Carnarvon Basin, earning 75% and operatorship by shooting 3D seismic, drilling one well and reimbursing past costs. Octanex is carried on 25%. Subject to approvals and permit renewals.
24 Nov 2010drilling result▲ GoodMajor
Spar-2 (Santos 45%, Apache op) found 55m net gas pay and flowed 58 mmcf/d, so the Spar resource is expected to be well above the 335 PJ gross previously stated. It will tie back via Halyard; the rig moves to Zola-1.
17 Nov 2010drilling result▲ Good
Partner Bow Energy repeats the Barta North-1 result: up to 4.5m net Murta oil pay and a moderate Birkhead show, cased and suspended for Q1 2011 testing. Cuisinier-2 appraisal well has spudded. Repeats ref 6, with small differences in pay estimate.
17 Nov 2010drilling spud● Neutral
Santos-operated Cuisinier-2 appraisal well has begun drilling, planned to 2,034m, 465m northeast of the Cuisinier-1 Murta oil discovery that is already producing. Partner Victoria Petroleum's 15% is carried at no cost.
15 Nov 2010other● Neutral
CEO David Knox's speech to the Australian Institute of Energy on gas and Asian LNG demand. It restates that GLNG has sold 5 mtpa of its two-train 7.2 mtpa capacity; the excerpt contains no new Santos result or decision.
15 Nov 2010farm in farm out completion▲ GoodMajor
Santos elects to proceed to Phases 2B and 2C of the PEL 456 farm-in with Apollo Gas, drilling a multi-well pilot and a further corehole to earn another 35%. This resolves the 15 November decision; Apollo cites encouraging Brawboy-Cuan results.
12 Nov 2010drilling result▲ Good
Barta North-1 (Santos op, ATP 752P) reached 2,090m and was cased and suspended, with 2 to 5m of probable Murta oil pay and a moderate Birkhead show. Commerciality is unproven until cased-hole tests in Q1 2011; rig moves to Cuisinier-2.
8 Nov 2010regulatory community update▼ BadMajor
PNG's Minister refused to extend PRL 5, in which Santos is a joint venture partner with Horizon and Talisman. The partners say the decision is contrary to law and are considering legal options. Stanley-2 on PRL 4 is unaffected.
4 Nov 2010asset acquisition disposition▲ GoodMajor
Santos agrees to buy Cairn Energy's Bangladesh Block 16 (Sangu) and Block 16 (Exploration) interests, lifting its Sangu stake from 37.5% to 75% and making it operator; Halliburton keeps 25%. Terms confidential; completion expected by end 2010.
3 Nov 2010drilling spud● Neutral
Santos-operated Barta North-1 oil exploration well in ATP 752P has begun drilling, planned to 2,031m, six kilometres from the Cuisinier-1 oil discovery. Partner Victoria Petroleum has a 15% interest in the well, carried at no cost.
3 Nov 2010drilling progress report▲ Good
Partner Beach's October report: Irtalie East-1 (Santos op, Beach 38.5%) found 6m net oil pay in Hutton sandstone and was suspended as a future producer. Strzelecki Northeast-1 was suspended as a gas producer. Coonatie-18 also suspended as a gas producer.
1 Nov 2010drilling progress report● Neutral
Partner ESG's monthly report: Culgoora 1A in PEL 238 (Santos 35%) drilled to 1,053m with 8.4m net Black Jack and 10.7m net Maules Creek coal; rig moved to Brigalow Park 2. Coal-seam appraisal data, no reserve change stated.
27 Oct 2010other● Neutral
Cover note attaching the UK prospectus for the €300m follow-on notes announced 15 October. They merge with the €700m notes due 2070, making €1bn in total. No new commercial information.
27 Oct 2010resource reserve update▲ Good
Apollo Gas reports an initial 3C contingent resource of 939 BCF (gross) for PEL 456, over 218 km2 of a 5,953 km2 permit. Santos holds 15% now and must decide by 15 November whether to continue to the next phases.
25 Oct 2010material agreement▲ GoodMajor
Santos agrees to supply 750 PJ of eastern Australian portfolio gas, mainly uncontracted Cooper Basin 2P reserves, to GLNG over 15 years from 2014, oil-linked priced. It is conditional on GLNG train 2 FID, with no material capex needed before 2014.
25 Oct 2010material agreement▲ Good
Epic Energy (Hastings fund) signs a conditional 15-year deal to carry 147 TJ/day of firm gas for Santos from Moomba to Wallumbilla. It depends on GLNG train 2 FID in 2011, and supports the Cooper-to-GLNG gas supply plan.
25 Oct 2010resource reserve update▲ Good
Partner Comet Ridge (40%) books contingent resources at the Mahalo joint venture (ATP 337P), where Santos holds 30%: 221 PJ of 2C net to Comet Ridge. Santos's own share is not stated in this release.
25 Oct 2010material agreement● Neutral
Cooper partner Beach says the South Australian Cooper Basin JV has received Santos's proposal to supply 750 PJ to GLNG; Beach's share would be about 152 PJ. Discussions are incomplete and no agreement is signed yet.
22 Oct 2010regulatory community update▲ GoodMajor
GLNG receives Federal environmental approval, following Queensland's approval in May 2010. This clears the last government approval flagged as pending; train 1 FID is still targeted by end 2010, with train 2 FID in 2011.
15 Oct 2010capital raising announcement▲ GoodMajor
Santos prices a €300m (about A$420m) follow-on hybrid at an implied yield of about 8.05%, lifting total hybrid funding to €1bn (about A$1.4bn). S&P gives 100% equity credit. It further reduces potential equity need for GLNG, with FID planned before year end.
13 Oct 2010director officer appointment● NeutralMajor
Andrew Seaton, 45, is appointed Deputy CFO and will become CFO when Peter Wasow retires at the end of 2010. This resolves the CFO successor search flagged earlier, and is an internal appointment.
12 Oct 2010other● Neutral
Conference speech by James Baulderstone at Carbon Expo 2010 arguing natural gas can cut power-sector emissions and pair with renewables. A policy argument for gas; no new Santos project, figure or result.
12 Oct 2010investor presentation● Neutral
US and UK investor presentation repeats known facts: 2009 reserves, half-year result, GLNG at 45% with FID in 2010, and first LNG in 2014. Cites A$8bn of cash and committed facilities. Little that is new.
6 Oct 2010drilling progress report▲ Good
Beach's September report: Santos-operated Coonatie-20 reached 3,239 m and is cased and suspended as a future gas producer. Coonatie-18 is drilling, and Strzelecki Northeast-1 and Irtalie East-1 are due to spud this week.
6 Oct 2010investor presentation● Neutral
Shareholder update restating the half-year results: A$198m profit (up 94%), 22c dividend, production down 9% on floods. Repeats GLNG FID targeted for 2010 and first LNG 2014. No new information.
1 Oct 2010drilling progress report● Neutral
ESG's monthly report: Ellendale 1 corehole (PEL 433, Santos 35%) reached 426 m with 5.2 m net coal. Culgoora 1 in PEL 238 (Santos 35%) stuck at 189 m, was plugged back, and Culgoora 1A is redrilling at 89 m.
23 Sept 2010investor presentation● Neutral
David Knox's conference speech in Darwin restates the LNG strategy: Darwin LNG 11.5%, PNG LNG, GLNG at 45% after the Total deal, and Bonaparte LNG. Says the portfolio could deliver over 5 mtpa of Santos equity LNG by decade end. No new announcements.
22 Sept 2010other● Neutral
Cover note attaching the UK prospectus for the €650m subordinated notes announced 17 September, due 2070. No new commercial information beyond the earlier announcement; the prospectus is a legal document for the London listing.
17 Sept 2010capital raising announcement▲ GoodMajor
Santos issues a €650m (about A$900m) hybrid at 8.25% fixed for 7 years, 60-year term, with 100% S&P equity credit and no conversion into shares. It reduces any future equity need dollar for dollar; GLNG FID on train 1 still expected by end 2010.
17 Sept 2010investor presentation● Neutral
Presentation sets out the funding plan: over A$7bn pre-funded via GLNG sell-downs, asset sales, the 2009 A$3bn equity raising and the A$900m hybrid. New equity only if required. Repeats the hybrid terms announced the same day.
