27 Jan 2011drilling progress report● Neutral
Tap reports Zola-1 (Santos 24.75%) drilled from 3,839m to 4,008m before the crew was evacuated ahead of Cyclone Bianca. No hydrocarbon result yet.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
25 Jan 2011other● Neutral
Hillgrove says the deadline lapsed, so it gets no contingent payment from Santos, which had been due if a more than 50% stake in ESG was acquired by 15 January 2011. Santos's ESG bid did not reach that threshold by then. Inference: Santos paid nothing further.
20 Jan 2011resource reserve update▼ BadMajor
AWE reports that Santos, operator of the Otway fields Casino, Netherby and Henry, cut initial 2P reserves from 602.5 PJ to 448.5 PJ (100% basis). AWE, with 25%, says contract gas volumes are not expected to be affected.
20 Jan 2011quarterly activities report● Neutral
Q4 2010 production was 12.8 mmboe on revenue of A$601m; 2010 output of 49.9 mmboe met guidance, with revenue A$2,228m, up 2%. Capex came in at A$1,887m against A$2,000m guided. 2011 production is guided at 48-52 mmboe.
20 Jan 2011joint venture update▼ BadMajor
BHP says Esso-operated Kipper (Santos 35%) costs rise to US$900m for BHP's share, with facilities now due in 2012. Mercury found in the reservoir means first production timing depends on resolving it. Earlier Kipper 2011 timing now looks later.
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.
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.