Past year: ▲ 35%(6.17 – 8.62 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
16 Sept 2010drilling result▲ Good
Apollo Gas reports coal seam gas holes Cuan-1 (1,422 m, 78.5 m coal, up to 15 m3/t, 99% methane) and Turill-1 (1,110 m, 31 m coal) completed in PEL 456. Santos holds 15% with an option to go to 50%; results called promising.
16 Sept 2010price query● Neutral
Santos confirms it has talked to potential hybrid investors, following the 26 August flag that it was considering a hybrid issue. No certainty a deal will happen; it says it complies with disclosure rules.
9 Sept 2010investor presentation▲ Good
Presentation repeats the Total deal: A$650m for 15% of GLNG, 5 mtpa binding offtake, Santos at 45%. Adds timing: first-train FID in 4Q 2010, second train about 12 months later, first LNG 2014, Federal approval expected October.
9 Sept 2010asset acquisition disposition▲ GoodMajor
Santos sells 15% of GLNG to Total for A$650m, cutting its stake from 60% to 45% (PETRONAS 35%, Total 20%). Binding LNG offtake now totals 5 mtpa (PETRONAS 3.5, Total 1.5), underpinning two trains. PETRONAS no longer pays extra on later trains.
1 Sept 2010director officer appointment● Neutral
James Baulderstone has resigned as Company Secretary to become VP Eastern Australia, and David Lim has been appointed Company Secretary. This implements the changes announced on 11 August.
1 Sept 2010drilling progress report● Neutral
Beach's August report: Coonatie-19 is cased and suspended, and Coonatie-20 is at 2,779 m, with more rain delaying Santos-operated drilling. Two further Coonatie wells remain in the seven-well campaign (Beach 17.14%). Beach's own Encounter-1 shale well is due mid September.
30 Aug 2010farm in farm out agreement▲ GoodMajor
Santos sold 55% of its Spar (WA-4-R) interest to Apache for US$31m upfront, with up to US$85m more depending on Spar 2 reserves. Santos keeps 45% of Halyard and Spar; Apache operates. Halyard is due online mid 2011, with about 335 PJ gross recoverable.
26 Aug 2010half year report▲ GoodMajor
Santos reported first-half net profit of A$198m (up 94%) on higher prices and lower exploration spend, with a 22c interim dividend unchanged. Production fell 9% to 24.2 mmboe on floods. Funding capacity is A$6.4bn; GLNG FID is still targeted for later in 2010.
26 Aug 2010investor presentation● Neutral
Half-year results presentation repeats the A$198m profit, 22c dividend and GLNG FID in 2010. It lists funding options including a GLNG equity sell-down, export credit financing, hybrids and asset sales, with new equity only if needed to support the credit rating.
26 Aug 2010half year report▲ Good
Full half-year report: net profit A$198m (up 94%), underlying A$210m, revenue A$1,134m, interim dividend 22c fully franked. Production fell 9% to 24.2 mmboe on Cooper Basin floods. Confirms the earlier profit guidance.
16 Aug 2010asset acquisition disposition● Neutral
Drillsearch is selling its 2% Naccowlah Block interest to Bounty Oil & Gas for A$1.15m. Santos (55.5%) operates the block. This is a minor change among the partners and does not alter Santos's own stake.
12 Aug 2010material agreement● Neutral
ESG's gas supply MoU, originally with Babcock & Brown (up to 40 PJ/a), has been assigned to National Power for a proposed northern NSW gas power station. Santos holds 35% of PEL 238. This is a non-binding MoU and the project was delayed after Babcock & Brown collapsed.
11 Aug 2010director officer appointment● Neutral
Peter Cleary, ex-BP, joins as VP Strategy and Corporate Development. Mark Macfarlane becomes CEO of GLNG Operations, and James Baulderstone becomes VP Eastern Australia. David Lim takes over as Company Secretary. All effective 1 September 2010.
9 Aug 2010other▲ Good
Santos expects first-half net profit of A$180-200m, above analysts' consensus of A$152m, mainly from lower net finance costs and lower royalty-related tax. EBITDAX is in line with forecasts. Full-year guidance is maintained; results due 26 August.
4 Aug 2010drilling progress report● Neutral
Beach's July report: Santos-operated Watson West-1 is cased and suspended as a future oil producer. Coonatie-19 is to be cased as a gas producer, and Coonatie-20 is at 1,949 m. Heavy rain has suspended Coonatie drilling. Irtalie East-1 is planned for August.
3 Aug 2010director officer appointment● NeutralMajor
CFO Peter Wasow will retire at the end of 2010 after eight years in the role, staying until then or until a successor is appointed. A search has begun. The change comes as Santos works on its GLNG funding strategy.
26 July 2010drilling progress report▲ Good
Apollo reports Cuan-1 in PEL 456 (Santos farm-in) at 1,290 m with about 70 m of coal intersected, and gas flared during testing. Brawboy-2 is complete at 1,089 m, with test interpretations awaited. Early, encouraging field observations only; no final results.
21 July 2010drilling scheduled● Neutral
Tap says Apache may start Zola-1 in WA-290-P (Santos 15%) as early as August, a roughly 5,000 m Carnarvon Basin well on trend with Gorgon. Tap estimates 0.2-2.0 tcf recoverable. Tap farmed out 10% to Apache in May.
19 July 2010debt financing▲ GoodMajor
Santos signed a A$2bn bilateral bank facility with tenors of four to seven years, replacing A$700m of undrawn facilities. Total funding capacity rises to A$6bn (from A$5.06bn at FY2009), helping fund GLNG and PNG LNG construction.
13 July 2010drilling result● Neutral
Pan Pacific repeats the Tap news: Apache's sole-risk Laurel-1 in TP/7 found no commercially significant hydrocarbons and was plugged. Barberry-1 in TL/2 (Santos 15%) has begun with partners not participating, but they can back in on a discovery.
13 July 2010drilling result▲ Good
Drillsearch reports Watson West-1 in the Naccowlah Block (Santos 55%) found 6-8 feet of oil pay and will be cased as a Basal Birkhead producer. Oil in place is estimated at 300,000-400,000 barrels, a small near-field discovery.
13 July 2010drilling result● Neutral
Apache's sole-risk Laurel-1 in TP/7 found no commercially significant hydrocarbons and was abandoned. Apache has begun the sole-risk Barberry-1 in TL/2 (Santos 15%), which Santos is not joining, though partners can back in on a discovery.
9 July 2010price query● NeutralMajor
Santos acknowledges media speculation about GLNG, saying it is in detailed talks with several parties on LNG sales, project equity and collaboration between projects. Nothing is agreed and there is no certainty of deals. Hints at possible partners or buyers ahead of the planned 2010 final investment decision.
7 July 2010drilling progress report● Neutral
Beach's June report said Santos-operated Inca-1 (Beach 30%) was cased and suspended as a future oil producer, and Watson West-1 (Santos 56%, Beach 38%) spudded on 5 July. Coonatie-16 was cased, and Coonatie-19 and -20 were drilling. Beach now reports monthly.
1 July 2010production update▲ Good
Nexus says an A$2.1m mercury-removal facility has been agreed with Santos for its Patricia Baleen plant, with Longtom gas production targeted to resume in late September. Up to A$3.9m more may be needed. Resolves the shut-in with a schedule, and gives costs.
1 July 2010drilling progress report● Neutral
ESG's monthly report: Baradine Creek 1 (PEL 434) has intersected about 3.5 m of coal at 554 m, and Camurra 2 (PEL 6) about 6.4 m of coal at 902 m. Santos holds 35% of PEL 434 and, per the About ESG section, of PEL 238.
23 June 2010drilling progress report● Neutral
Beach's weekly report: Santos-operated Inca-1 (Beach 30%) is drilling at 1,766 m, and Coonatie-17 is being cased as a future Permian gas producer. Beach's own shale gas wells are delayed, and it will now report drilling monthly.
16 June 2010drilling progress report● Neutral
Beach's weekly report: Genoa North-2 (Santos operator, Beach 30%) was cased and suspended as a future oil producer, and the rig moved to the Inca-1 oil exploration well. Coonatie-16 and -17 gas wells in PPL 131 (Santos 72.32%) are due to resume.
15 June 2010drilling result● Neutral
Apache's sole-risk Bath-1 well in TL/2 (Santos 15%, not participating) found no significant hydrocarbons in its main target, but found oil in the shallower Taunton reservoir. Apache is now drilling Laurel-1 in TP/7 (Santos 18.71%), also without Santos.
15 June 2010drilling result● Neutral
Pan Pacific repeats the Tap news: Apache's sole-risk Bath-1 (TL/2) found no significant hydrocarbons in its main target but did find oil in the shallower Taunton reservoir. Laurel-1 in TP/7 has started, with Santos (18.71%) and Pan Pacific not participating.
