Past year: ▲ 35%(6.17 – 8.62 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
27 July 2009contract award▲ Good
Santos secured a four-year extension of its gas supply contract with Newmont in Western Australia, worth about A$100m from late 2009. Gas comes from Santos' 45% share of John Brookes. Modest contract against Santos' wider revenue.
23 July 2009quarterly activities report● Neutral
June quarter production was 13.4 mmboe (up 2%) and revenue A$484m (down 10%) on a A$75.66 oil price. 2009 production guidance holds at 53-56 mmboe; capex guidance rises to A$1,600m, mainly for early PNG LNG works.
22 July 2009drilling progress report● Neutral
Beach's Willunga-1 was dry and abandoned (not Santos). Santos-operated Burnside-1ST1 is at 3,823 m, preparing to run casing. Psyche-6 Cooper well cased as a future gas producer.
21 July 2009joint venture update▼ Bad
Nexus says Longtom offshore work is delayed further, with completion now 28 September to 15 October 2009, costs up about 5%, and first gas now expected in Q4 2009. Santos holds an option over up to 35%; Longtom gas is timed with Santos' Orbost gas plant upgrades.
15 July 2009drilling progress report● Neutral
Beach's Willunga-1 is drilling (not Santos). Santos-operated Burnside-1ST1 is drilling ahead at 2,780 m after the sidetrack. Santos Cowralli-11 being cased as a gas producer. Routine.
15 July 2009drilling progress report● Neutral
ESG's bimonthly report on Narrabri PEL 238 wells, where Santos is now 35% partner after the July deal. Bibblewindi 20 found 19.8 m of Bohena coal; Coonarah 9 confirmed favourable Hoskissons seam. Routine drilling update.
15 July 2009asset acquisition disposition● Neutral
Hillgrove says it completed selling its ESG stake to Santos for about A$172m, A$1.00 per share. Completes Santos' 19.99% ESG purchase announced 2 July; the potential top-up payment within 18 months of a takeover above A$1.00 remains.
14 July 2009drilling spud● Neutral
Comet Ridge reports Santos-operated Scrubber Gully 1 coal seam gas core well spudded in the Mahalo block (ATP 337), targeting 445 m over about 11 days. Data will firm up contingent resource estimates. Comet Ridge holds 40%.
8 July 2009drilling progress report▼ Bad
Beach's Cheetima-1 was dry and abandoned (not Santos). Santos-operated Burnside-1 in the Browse Basin was sidetracked as Burnside-1ST1 because of mechanical issues, and is drilling at 2,320 m. Cooper gas wells continue.
6 July 2009joint venture update▼ Bad
Nexus says Longtom gas project construction was interrupted by a vessel contract dispute; work should restart in about three weeks and gas is still expected in Q3 2009. Longtom ties into Santos' Patricia Baleen pipeline, where Santos holds an option over up to 35%.
2 July 2009asset acquisition disposition● Neutral
Eastern Star Gas welcomes Santos as 35% partner in the Narrabri project (PEL 238) and a 19.99% shareholder. ESG keeps 65% and operatorship, and says it is on track for 1,300 PJ of 2P reserves by end 2009. Counterparty view of the Santos deal.
2 July 2009asset acquisition disposition● Neutral
Hillgrove confirms selling its 19.99% of Eastern Star Gas to Santos for about A$172m cash, settling by 20 July. Santos owes a top-up if a holder gets over 50% of ESG above A$1.00 a share within 18 months. Repeats the Santos deal terms.
2 July 2009asset acquisition disposition▲ GoodMajor
Santos agreed to pay A$476m to expand its Gunnedah Basin coal seam gas position: A$300m for Gastar's 35% of Eastern Star Gas-operated permits and A$176m for 19.99% of ESG at A$1.00 a share. Combined acreage is about 63,000 sq km, building on Santos' own Gunnedah program.
1 July 2009drilling progress report● Neutral
Beach's weekly report: its Cheetima-1 oil well spudded (Beach 75%, not Santos). Santos-operated Burnside-1 in the Browse Basin reached 2,448 m and was pulling out to investigate intermediate casing issues. Mostly routine for Santos.
30 June 2009listing compliance notice● Neutral
Santos will voluntarily delist its ADRs from NASDAQ, effective about 31 July 2009, ahead of an exemption expiring 1 August. The company says ADR volume was under 1% of trading. ADRs will trade over the counter; ASX shares are unaffected.
24 June 2009drilling progress report● Neutral
Beach's Butlers-1 found a 4.5 m oil column (Beach 75%, not Santos). Santos-operated Burnside-1 in the Browse Basin is drilling at 1,741 m toward 4,200 m. Cooper gas wells Cowralli-13 cased; Theta-2 running casing.
22 June 2009material agreement▲ GoodMajor
PNG LNG partners aligned commercial terms with three Asian buyers for about 4.3 mtpa. A fourth buyer awaits government approval for the remaining 2 mtpa. FID is now targeted for Q4 2009. Santos expects about 13.7% after the PNG government back-in.
18 June 2009material agreement▲ GoodMajor
GLNG signed a binding heads of agreement to sell 2 mtpa of LNG to PETRONAS for 20 years from 2014, with an option for 1 mtpa more. It underpins the first train and is conditional on FID, still expected in 1H 2010.
17 June 2009drilling progress report● Neutral
Beach reports Burnside-1 spudded 15 June in the Browse Basin, with Santos operating at 47.83% and a planned depth of 4,200 m. Perlubie South-1 found a 3 m oil column (Beach 75%, not Santos). Cooper gas wells continue. Mostly routine.
16 June 2009admin correction● Neutral
Santos issued 10,641 shares as a reconciliation adjustment to the allocation under the May equity offering. Compliance notice under the Corporations Act; no new commercial information.
16 June 2009capital raising announcement▲ GoodMajor
Santos completed the retail part of its equity raising, taking the total to about A$3bn at A$12.50. Valid applications were about A$1.1bn; about 72m shares go to retail holders and about 25m to sub-underwriters. Trading begins 17 June.
10 June 2009drilling progress report● Neutral
Beach's weekly report shows Perlubie South-1 spudded 8 June, the second well of its six-well PEL 92 oil program (not Santos). Santos-operated Cowralli-13 and Tindilpie-9 gas wells continue drilling. Routine.
4 June 2009other▲ Good
Santos says GLNG talks with an Asian customer are advanced, and more PNG LNG heads of agreement are expected. ExxonMobil awarded the early civil works contract for PNG LNG, and the Kakap 9% sale has closed. PRL 5 sale gain or loss unlikely to be material.
3 June 2009drilling progress report▼ Bad
Beach's Tumby-1 (not Santos) found no hydrocarbons and is being plugged and abandoned. Perlubie South-1 is next. Santos-operated Cooper gas wells Cowralli-13 and Tindilpie-9 are drilling ahead. Routine.
3 June 2009asset acquisition disposition● NeutralMajor
Santos agreed to sell its 50.353% operated stake in PNG's PRL 5 (non-producing, not part of PNG LNG) for US$20m. It is part of a non-core asset sales program; guidance and reserves are unchanged and the gain or loss is unlikely to be material.
29 May 2009joint venture update● Neutral
Carbon Minerals reports on Santos-operated Gunnedah Basin seam gas wells. Slacksmith-1 reached 1,410 m with over 90 m of coal. Lake Goran-1 stopped at 945.7 m after heavy igneous intrusions. Tambar Springs East is next. Mixed early results; no reserves booked.
27 May 2009drilling progress report● Neutral
Beach's Tumby-1 spudded 26 May as the first of six oil wells in PEL 92 (not Santos). Santos-operated Cowralli-10 is cased and suspended as a future gas producer; Tindilpie-8 at 3,161 m is being cased and suspended. Routine.
20 May 2009drilling progress report● Neutral
Beach's weekly report shows Cowralli-10 at 3,237 m TD preparing to log, and Tindilpie-8 at 3,071 m about to core, both Santos-operated Cooper gas wells. Beach's Tumby-1 oil well is now expected to spud on 26 May. Routine.
15 May 2009capital raising announcement● Neutral
Santos told shareholders outside Australia and New Zealand, and US persons, that they cannot join the retail entitlement offer at A$12.50. Entitlements are non-renounceable, so they receive no payment or value. Administrative notice.
15 May 2009capital raising announcement● Neutral
Santos released the retail offer booklet for the 2-for-5 entitlement offer at A$12.50, closing 5 June. Funds go to PNG LNG, the A$600m FUELS redemption and BBB+ rating; new shares get the interim dividend, expected at 22c. Entitlements cannot be traded.
