18 July 2008drilling progress report● Neutral
Bow update: Hudson-1 reached total depth of 2,430 m with minor oil shows throughout, and wireline logging was planned for the weekend. No testing decision has been made.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
18 July 2008farm in farm out completion▲ GoodMajor
Santos confirms the PETRONAS deal for 40% of Gladstone LNG is now unconditional after regulatory approvals, including from FIRB, and will complete shortly. PETRONAS pays US$2.008bn on completion, plus US$500m at final investment decision on a second train.
17 July 2008drilling progress report● Neutral
Bow update: Hudson-1 was at 2,347 m drilling in the Doonmulla sandstone, with minor oil shows in all zones so far. Planned total depth is 2,434 m.
16 July 2008drilling progress report● Neutral
Bow update: Hudson-1 was at 2,272 m, running in after a bit change, with minor oil shows. Jawsone-1 (Mosaic's well) was setting casing. No new result.
16 July 2008drilling progress report● Neutral
Third-party Beach weekly report: Santos-operated Deparanie-2 was cased and suspended pending evaluation, and Big Lake-88 was plugged and abandoned as unsuccessful. Mudera-14 RE1 is a gas development re-entry.
16 July 2008drilling spud● Neutral
AWE reports Pecten East-1 was plugged and abandoned at 1,993 m, and Netherby-1 began drilling 15 July in Santos-operated VIC/P 44 (Santos 50%). It targets the Waarre A sand to 1,823 m, about 4 km north of Henry-1.
15 July 2008drilling progress report● Neutral
Bow update: Hudson-1 was at 2,262 m with minor oil shows, still short of the Doonmulla target. Also notes Mosaic's Jawsone-1 spudded in the Surat Basin, which is not a Santos well.
15 July 2008investor presentation● Neutral
Presentation by Santos' CSG manager Stephen Kelemen at the Patersons conference. It restates the Fairview target of 145 TJ/d CSG sales by January 2009 and Gunnedah's 40 Tcf prospective resource, with a first contingent booking expected in 2009. Mostly known material.
15 July 2008drilling progress report● Neutral
Third-party Victoria Petroleum release repeating that Santos' Hudson-1 was at 2,262 m with minor oil shows. Vicpet is carried and keeps 15% of ATP 752P. Nothing new on the well.
14 July 2008drilling progress report● Neutral
Bow update: Hudson-1 was at 2,113 m with minor oil shows in several sandstones. The Doonmulla primary target was not yet reached. Testing will be decided after logging.
11 July 2008drilling progress report● Neutral
Bow update: Santos' Hudson-1 was at 755 m after setting casing, planned total depth 2,434 m, with Hutton and Doonmulla as primary targets. Also covers Bow's Don Juan coal seam gas coring, not a Santos asset.
9 July 2008drilling progress report● Neutral
Third-party Beach weekly report: Santos-operated Narcoonowie-7 reached 1,678 m and is to be cased as a future oil producer. Deparanie-2 is logging and Big Lake-88 is drilling in the Hutton.
9 July 2008drilling result▼ BadMajor
AWE reports Pecten East-1 in Santos-operated VIC/P 44 reached 1,993 m; gas shows were proven residual, so the well found no producible gas. It was drilled down-dip, and the joint venture is considering a separate crestal well.
8 July 2008drilling spud● Neutral
Bow reports Santos' Hudson-1 in ATP 752P spudded at midnight on 7 July, drilling at 580 ft. It follows the Cuisinier-1 oil discovery on the same trend; Santos operates, and Bow retains 15%.
3 July 2008drilling progress report● Neutral
Third-party Beach weekly report: Santos-operated Granchio-3 was cased and suspended as a future McKinlay oil producer. Big Lake-88 and Deparanie-2 are in progress. Other items are not Santos-operated oil wells.
3 July 2008asset acquisition disposition● Neutral
Third-party Drillsearch release: it will buy CPC's 1% of the Tintaburra block (ATP 299P), lifting it from 10% to 11%, for 60 million shares. Santos QNT and Vamgas keep 89% combined, so Santos' interest is not stated to change.
2 July 2008drilling scheduled● Neutral
Bow says Santos' Hudson-1 well in ATP 752P was expected to spud over the weekend after the delay flagged in June. It is the second well of a 7-well program after the Cuisinier-1 oil discovery; Bow keeps 15%.
1 July 2008drilling progress report● Neutral
AWE says Pecten East-1 in VIC/P 44 (Santos operator, 50%) was at 630 m after running 13-3/8" casing, against a planned 1,943 m. No results yet.
25 June 2008drilling spud● Neutral
AWE reports Pecten East-1, first of three wells in Santos-operated VIC/P 44 (Santos 50%, AWE 25%, Mitsui 25%), began drilling 23 June in the Otway Basin, 310 m deep, planned total depth 1,943 m. Netherby-1 and Henry-2 follow.
25 June 2008drilling progress report● Neutral
Third-party Beach weekly report: Santos-operated Big Lake-87 was cased and suspended as a future Hutton oil producer, and Granchio-3 is drilling at 1,314 m. Rain slowed operations early in the week.
24 June 2008production update▼ BadMajor
Operator Apache expects John Brookes gas processing at about 200 TJ/d gross, Santos 45%, to restart in mid-August after the 3 June Varanus Island incident. Santos estimates a 2008 net production loss of 1.2 mmboe, which should affect the 56-58 mmboe guidance.
19 June 2008drilling scheduled▼ Bad
Third-party Vicpet release: Santos' Hudson-1 well in ATP 752P, planned for late June, could be delayed 2-3 weeks after 80-100 mm of rain damaged roads. It targets a most likely 1.2 million barrels, up to 10 million barrels at P10.
19 June 2008investor presentation● Neutral
CFO Peter Wasow's UBS conference presentation, 'Beyond the 2P', repeats the portfolio and growth strategy including Gladstone LNG. The readable text shows no new figures.
18 June 2008drilling progress report● Neutral
Third-party Beach weekly report: Santos-operated Mama-1 was a successful well, being cased and suspended. Big Lake-87 is drilling. Beach's own Parsons-1 began producing at 2,640 bopd.
13 June 2008investor presentation● Neutral
Santos investor presentation delivered in the USA and London, citing a US$12.4bn market cap and 2007 production of 59.1 mmboe. It restates known strategy and reserves; the readable text shows nothing new.
11 June 2008drilling progress report● Neutral
Third-party Beach weekly report: Santos-operated Cowralli-9 was cased and suspended as a future gas producer, and Mama-1 is drilling out cement at 542 m. Other items are Beach's own wells.
10 June 2008contract award● Neutral
Third-party Rheochem release: it won a new contract to supply drilling fluids to Santos' Australian onshore operations from 1 June 2008 to 31 May 2011, replacing the contract that expired in May 2008. No value is given.
4 June 2008other▼ Bad
Third-party Jabiru Metals notice: Santos advised that gas supply to its Jaguar mine is likely to be disrupted by the Varanus Island pipeline explosion. Jabiru continues on diesel power; the duration is unknown.
4 June 2008production update▼ BadMajor
An incident at Varanus Island halted all production, including the John Brookes field where Santos holds 45%. The field is undamaged but shut in. Santos' Q1 2008 equity production from it was 1.36 mmboe.
4 June 2008drilling progress report● Neutral
Third-party Beach weekly report: Santos-operated Mitchie-2 was cased and suspended as a future Tirrawarra oil and Patchawarra/Toolachee gas producer. Mia-1 is being plugged and abandoned. Other items are Beach's or others' wells.