5 Oct 2006drilling result▲ Good
Third-party filing by Drillsearch: in Santos's Tintaburra block, Mulberry 21 found 7 m of net pay and was cased as a future producer. Mulberry 22 and Endeavour 19 are drilling.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
5 Oct 2006business combination● NeutralMajor
Santos launched an all-cash offer of $1.26 per share for Queensland Gas Company (QGC), valuing it at $606m, via its subsidiary. It holds 3.9% and needs 50.1%. Debt-funded, consistent with a BBB+ credit rating. Resolves the earlier unpriced QGC item.
4 Oct 2006drilling progress report▼ Bad
Third-party filing by Beach: Glenaire-1 (Santos 30%) is plugged back to 3,028 m and being sidetracked because of deviation problems, after reaching 3,002 m last week. Santos is also operator at Yanda-17 and Diptera-1; no results reported.
3 Oct 2006dividend declaration● Neutral
Santos set the FUELS dividend rate at 5.4693% a year for 30 September 2006 to 30 March 2007, or 7.8133% grossed up for franking credits. It is 1.55% above the bank bill swap rate of 6.2633%. Routine reset.
3 Oct 2006production update▲ GoodMajor
First gas flowed from the Maleo field (Madura Offshore PSC, Santos 67.5% operator), Santos's first operated offshore project outside Australia. The US$75m project is on schedule and budget, with plateau up to 110 mmscfd for about 5 years and 240 bcf reserves. This resolves the 'Maleo gas 2H 2006' item.
29 Sept 2006drilling result▼ Bad
Third-party filing by Drillsearch: in Santos's Tintaburra block, Eulo 1 exploration well found an unproductive reservoir and will be abandoned. Mulberry 21 is being cored. Kooyong 1 is still described as promising.
28 Sept 2006director officer appointment▲ GoodMajor
Santos appointed Roy Franklin OBE, 53, a UK-based former Paladin Resources CEO and BP geologist, as a director with immediate effect. The chair says it reflects Santos expanding its international focus. No replacement had been named after Christopher Recny's death in June.
26 Sept 2006drilling progress report● Neutral
Third-party filing by Beach: Somerton-1 found no hydrocarbons and is being plugged. Glenaire-1 (Santos 30%) reached 3,002 m and 7 inch casing is cemented before the final section. No Santos result yet.
26 Sept 2006material agreement▲ Good
Third-party filing by Wesfarmers: it is building a 175 tonne-per-day LNG plant in Western Australia (up to A$138m) and has concluded long-term gas supply arrangements with Santos. Santos's volumes and terms are not given.
26 Sept 2006drilling spud▲ Good
Third-party filing by Cue: Wortel-2 appraisal well began drilling 26 September 2006 in the Sampang PSC (Santos 40.5% operator). It follows the Wortel-1 gas discovery and is expected to take about 18 days to roughly 1,400 m.
22 Sept 2006farm in farm out agreement▲ GoodMajor
Korea National Oil Corporation (15-25%) and Samsung Corporation (10%) will farm into Santos's Jaguar/Cougar shallow-water Texas exploration project. Santos calls it portfolio management to share exploration risk. Santos's remaining interest and any payment are not stated.
22 Sept 2006drilling scheduled● Neutral
Third-party filing by Mosaic: Churchie West-1 (PL 213; Mosaic 83.333% operator, Santos 16.667%) is expected to start about 8 October 2006. It targets gas/condensate to 2,178 m over roughly 18 days.
21 Sept 2006drilling result● Neutral
Third-party filing by Drillsearch: in Santos's Tintaburra block, Endeavour 14 (11 m pay) and Mulberry 25 (4 m pay) were cased as future water injectors. Mulberry 19 (7 m pay) will be a future oil producer.
21 Sept 2006drilling result▲ GoodMajor
Dua-5X RE in Vietnam Block 12E found multiple gas and oil reservoirs in the southern fault block of the Dua structure, adding to the Dua-4X find. Drill stem testing is being prepared; Blackbird is next. Santos goes to 37.5% once farm-in is approved.
19 Sept 2006drilling progress report● Neutral
Third-party filing by Beach: Kenmore-41 was cased as a future oil producer (Beach 100%, no Santos interest stated). Glenaire-1 (Santos 30%) has drilled to 2,154 m. Somerton-1 spudded. No Glenaire result yet.
15 Sept 2006drilling result● Neutral
Third-party filing by Drillsearch: in Santos's Tintaburra block (Santos 89%), Endeavour 18 found about 9 m of oil pay and was cased as a future producer. Talgeberry 16 was dry and abandoned. Mulberry 25 is drilling.
15 Sept 2006dividend declaration● Neutral
Santos set the price for shares issued under its dividend reinvestment plan at $10.923571, with no discount. This applies to the 20c fully franked dividend payable 2 October 2006.
12 Sept 2006drilling progress report● Neutral
Third-party filing by Beach: Snowden-1 (Cooper Basin, no Santos interest stated) found no hydrocarbons and is being plugged. Glenaire-1 (Santos 30%) has drilled to 448 m. Routine weekly update with no Santos result.
11 Sept 2006drilling result▼ BadMajor
Third-party filing by Pan Pacific: Libris ST-1 reached 3,481 m and logs showed sub-economic oil discoveries in the Upper and Lower Angel Formation. The well will be plugged and abandoned. Santos holds 15%.
11 Sept 2006drilling result▼ Bad
Third-party filing by Tap: Libris-ST1 (Santos 15%) reached 3,481 m and logs indicate a sub-economic oil discovery in the Angel Formation. The well is being plugged and abandoned. Confirms Pan Pacific's report.
8 Sept 2006drilling spud● Neutral
Third-party filing by Beach: Glenaire-1 (PEP 160, Otway Basin) spudded 8 September, targeting a 68 Bcf mean prospect to 3,945 m in about 63 days. Santos holds 30%. This is the well the Galloway-1 rig was moved to.
8 Sept 2006drilling result▲ Good
Third-party filing by Drillsearch: Kooyong 1, a near-field exploration well in Santos's Tintaburra block, found 8 m of net oil pay and was cased as a future producer. Talgeberry 15 was cased as a potential water injector. Two more wells have spudded.
6 Sept 2006well test result▼ Bad
Third-party filing by Comet Ridge: Mahalo 2 (ATP 337P, Santos operator) reached 234 m with no measurable gas or water flow from the coals, which suggests low permeability or damage. Comet Ridge still earns 40%; Santos and Origin hold 30% each.
6 Sept 2006drilling progress report● Neutral
Third-party filing by Pan Pacific: Libris-1 (WA-246-P, Santos 15%) reached 3,481 m and will be evaluated over the next 7-10 days. No result yet.
6 Sept 2006material agreement termination▼ BadMajor
Third-party filing by Westpac Funds Management: it has terminated its Implementation Agreement of 16 July 2006 with Santos, which relates to the Australian Onshore Energy Fund. The filing gives no reason. Inference: this ends the Delhi deal route with that fund.
5 Sept 2006drilling progress report● Neutral
Third-party filing by Tap: Libris-ST1 (Santos 15%) was drilled and cased to 3,224 m, with drilling to continue to 3,486 m in about 7 days. No results yet.
5 Sept 2006well test result▲ GoodMajor
Third-party filing by Cue: Wortel-1 flowed 18.5 mmcf/d from a 141 m gross gas column in the Mundu limestone, the same reservoir as Oyong. Santos calls it encouraging but says appraisal is needed. Wortel-2 is planned for October.
5 Sept 2006farm in farm out agreement▲ Good
Third-party filing by Caspian: Santos finished the first phase of its Kyrgyz farm-in (US$3m spent) and will commit a further US$6m by February 2008. It can earn up to 80% of the licences for US$24m by February 2009. Seismic is planned for 1H 2007.
5 Sept 2006well test result▲ GoodMajor
Wortel-1 (Santos 40.5% operator) found a 141 m gross gas column and flowed 18.5 mmcf/d, in the same limestone as Oyong 7 km away. Santos says appraisal is needed to confirm the resource. Wortel-2 is planned for October 2006.
1 Sept 2006drilling progress report▲ Good
Third-party filing by Drillsearch: Cranstoun 4 was cased as a future producer with 3 m of pay in Santos's Tintaburra program. Drillsearch expects its revenue to rise about A$4.5m a year to about A$16m. 15 wells are producing; Kooyong 1 has spudded.