23 Oct 2008investor presentation● Neutral
Santos's coal seam gas manager presented to a JPMorgan conference, restating the CSG position: 145 TJ/d sales targeted for January 2009 and 50-70 Tcf of potential resource captured. No new facts.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
22 Oct 2008drilling progress report▼ Bad
Drillsearch reports Santos-operated Jackson South 14 reached 1,591 m and is being plugged and abandoned, a dry hole. The rig moves to Jackson South 16. Beach's Brownlow-1 spudded 19 October.
22 Oct 2008drilling progress report● Neutral
Beach reports Santos-operated Tickalara-19 (Santos 70%, Beach 30%) was cased as a future McKinlay oil producer. Jackson South-14 is to be plugged and abandoned. Routine Cooper drilling results.
21 Oct 2008drilling progress report▲ Good
AWE reports the Henry-2 horizontal section was drilled through the Waarre A from 2,050 to 2,648 m with good gas shows and good reservoir on logs. Completion is being run, then testing. Supports Henry first gas in H1 2009.
16 Oct 2008contract award▲ Good
PNG LNG (Santos 17.7%) has started a competitive EPC tender for the LNG plant, between Bechtel and Chiyoda, with award expected by late 2009 and construction from 2010. Consistent with the FEED timetable, with FID still expected Q4 2009.
16 Oct 2008drilling progress report● Neutral
Drillsearch reports Santos-operated Jackson South 14 spudded 11 October and is drilling at 978 m. Brownlow-1, operated by Beach, is about to spud. Routine development drilling.
14 Oct 2008drilling progress report▲ Good
AWE reports 9 5/8 inch casing was successfully set on the Henry-2 DW1 ST1 sidetrack, to 2,050 m. This resolves the earlier tight-hole casing problem. A horizontal section through the Waarre A will follow.
9 Oct 2008drilling progress report● Neutral
Drillsearch reports Santos-operated Jackson South 15 (TD 1,505.1 m) recovered 20.8 bbl of oil in a drillstem test and will be cased and suspended. Brownlow-1 (non-Santos) is moving in. Routine development result.
8 Oct 2008contract award● Neutral
Moly Mines confirms the Spinifex Ridge gas deal with Santos: about 15 TJ/day for six years from mid-2010. It is conditional on full project financing. Matches Santos's own announcement of the same day.
8 Oct 2008drilling progress report● Neutral
Beach reports Santos-operated Jackson South-15 reached 1,515 m and is being tested, and Iliad-6 is drilling. Beach's own Brownlow-1 is about to start. Routine Cooper Basin drilling.
8 Oct 2008contract award▲ GoodMajor
Santos signed a gas supply contract with Moly Metals for the Spinifex Ridge mine, about 33 PJ over six years from mid-2010, worth roughly US$380m at US$90 oil. It needs about A$45m net spent on East Spar pipeline capacity. Conditional on Moly raising capital.
2 Oct 2008drilling progress report● Neutral
Drillsearch reports Santos-operated Jackson South 15 is drilling at 1,208.5 m with oil shows in the Namur and Murta formations. Continues the Naccowlah development program; no result yet.
1 Oct 2008drilling progress report● Neutral
Beach's weekly report says Santos-operated Iliad-5 (Santos 70%, Beach 30%) was cased as a future oil producer. Jackson South-15 is still drilling. Routine Cooper Basin development drilling.
30 Sept 2008drilling progress report▼ Bad
AWE reports attempts to set casing on the Henry-2 DW1 sidetrack failed because of tight hole conditions. The 12-1/4 inch hole will be redrilled after setting a kick-off plug. A setback, though no delay to first gas is stated.
30 Sept 2008dividend declaration● Neutral
Santos sets the FUELS dividend rate at 6.0142% a year for 30 September 2008 to 30 March 2009 (8.5917% grossed up for franking). It is the 180-day bank bill rate of 7.0417% plus a 1.55% margin. Routine reset.
26 Sept 2008drilling progress report▲ Good
Drillsearch reports Santos-operated Jackson 57 reached 1,514 m with oil shows and was cased and suspended as a future Hutton oil producer. The Westbourne reservoir was finer grained than expected. Rig moves to Jackson South 15.
24 Sept 2008drilling progress report▲ Good
Beach reports Santos-operated Galex-2 was cased as a future gas producer and Jackson-57 as a future oil producer. Big Lake-90 is drilling. Routine development results.
23 Sept 2008drilling progress report● Neutral
AWE reports the Henry-2 DW1 sidetrack reached 2,047 m, entering the top of the Waarre A reservoir at 2,041 m. It is conditioning the hole to run casing before a horizontal section.
19 Sept 2008asset acquisition disposition▲ GoodMajor
Santos bought 100% of WA-4-R, containing most of the undeveloped Spar gas field, from the Gorgon JV participants, for undisclosed terms. Spar holds up to 600 PJ of gas and up to 8m barrels of condensate. Subject to approvals.
18 Sept 2008drilling progress report● Neutral
Drillsearch reports Santos-operated Jackson 57 spudded 15 September and is drilling at 597 m targeting the Hutton and Westbourne. No result yet.
17 Sept 2008drilling progress report▲ Good
Beach reports Santos-operated Big Lake-89 was cased as a future gas producer, and Iliad-4 as a future oil producer. Galex-2 and Jackson-57 are drilling. Routine development results.
16 Sept 2008drilling progress report▲ Good
AWE reports the Henry-2 pilot hole reached 2,042 m and found good gas-bearing Waarre A sandstones. The development sidetrack Henry-2 DW1 is now drilling at 1,657 m. Supports Henry first gas in H1 2009.
15 Sept 2008regulatory community update● Neutral
Santos rejects a press suggestion that it understated the Sidoarjo mudflow exposure in Indonesia (Brantas, 18% non-operated). It says its existing provision remains appropriate, while the situation stays uncertain. No new figure is given.
15 Sept 2008well test result▲ GoodMajor
Vicpet reports Cuisinier-1 (ATP 752P, Santos operator) flowed light oil from the Murta sandstone, recovering 104.5 barrels in about 29 hours. It will be completed as a pump producer. Confirms the oil discovery, though a stable rate is not yet known.
12 Sept 2008dividend declaration● Neutral
Santos sets the dividend reinvestment price for the 22c interim dividend at A$18.1886, with no discount. The dividend is paid 30 September. Administrative follow-up to the August announcement.
11 Sept 2008drilling progress report● Neutral
Drillsearch reports Naccowlah West-22 was cased as a Birkhead/Hutton producer. Santos-operated Jackson 57 is expected to spud 13 September after rig maintenance. No new result.
10 Sept 2008drilling progress report● Neutral
Beach weekly report: Santos-operated Iliad-4 (Beach 30%) is drilling. Beach also announced its own Cooper drilling program from 8 October and a Paralana geothermal well. Little that is new for Santos.
9 Sept 2008drilling progress report● Neutral
AWE reports Henry-2 pilot well in Santos-operated VIC/P 44 is drilling ahead at 1,560 m, up 903 m over the week. Target depth is 2,047 m. No result yet.
8 Sept 2008investor presentation● Neutral
Santos presentation to US investors repeats its strategy, 2008 achievements and the A$300m buy-back and interim results. Reserves of 485 mmboe 1P and 879 mmboe 2P are unchanged. No new information.
4 Sept 2008drilling progress report▲ Good
Drillsearch (2% holder) reports Santos-operated Naccowlah West-22 reached 1,750 m, and a drillstem test recovered oil. It will be cased and suspended as a future production well, with the rig moving to Jackson 57.