29 Aug 2006drilling progress report● Neutral
Third-party filing by Tap: Libris-1 (Santos 15%) lost its original hole, was plugged back and redrilled as Libris-ST1, and was at 2,657 m. Target depth is now 3,486 m, about 10 days away.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
29 Aug 2006drilling result▲ GoodMajor
Third-party filing by Cue: Wortel-1 reached 1,464 m with an initial gross gas column of 141 m above a gas-water contact at 1,383 m. A liner and flow test follow. It is a gas find 7 km west of Oyong, with significance awaiting testing.
25 Aug 2006drilling scheduled● Neutral
Third-party filing by Comet Ridge: Mahalo 2 (ATP 337P, Santos operator) is due to spud 26 August, a roughly 233 m well to test coal seams. It follows the delayed Mahalo test; after it Comet Ridge earns 40%, with Santos and Origin 30% each.
24 Aug 2006drilling progress report● Neutral
Third-party filing by Cue: Wortel-1 (Santos 40.5% operator) was at 1,247 m and had hit the Mundu limestone reservoir at 1,242 m with gas indications, 56 m low to prognosis. Significance is not yet known.
24 Aug 2006drilling progress report▲ Good
Third-party filing by Drillsearch: 15 wells in Santos's Tintaburra program (Santos 89% operator) are now producing. Cranstoun 3 was cased as a future producer with 3 m of pay, Cranberry 1 was dry, and the extra 20-well program has begun.
24 Aug 2006investor presentation● Neutral
Webcast slides for the half-year result, repeating the record A$370m profit, 28.7 mmboe production, 20c dividend and 32% gearing already announced. Lists first-half highlights including the Delhi offer, Kipper and the Dua-4X discovery. No new information.
24 Aug 2006half year report▲ Good
Santos reported 1H 2006 net profit of A$369.5m (up 27.6%) on revenue of A$1,320.6m. Interim dividend is 20c per share, payable 2 October 2006, with no discount on the reinvestment plan. Detail is in the accompanying release.
24 Aug 2006half year report▲ GoodMajor
Santos reported a record first half: profit A$370m (up 28%), underlying profit A$407m, production 28.7 mmboe, interim dividend 20c. Full-year guidance stays 60-61 mmboe. It says PNG pipeline capital costs have risen, so the PNG project needs higher gas prices.
23 Aug 2006drilling progress report▼ Bad
Third-party filing by Tap: Libris-1 (WA-246-P, Santos 15%, Apache operator) lost its drill string at 2,940 m. The well is being plugged back to about 800 m and redrilled, delaying it by about 7 days.
22 Aug 2006drilling result▼ BadMajor
Galloway-1 (Santos 37.5% operator) reached 2,315 m and found both objectives water-bearing, with no hydrocarbons. It will be plugged and abandoned. This is a dry hole against the 28 mmbbl mean prospect; the rig moves to Glenaire-1 in the Otway Basin.
22 Aug 2006drilling result▼ Bad
Third-party filing by Nexus: Galloway-1 reached 2,315 m with no hydrocarbons in either Latrobe target and is being prepared for abandonment. Results will be analysed to assess remaining prospectivity in the permit. Confirms Santos's dry-hole report.
22 Aug 2006drilling result▼ Bad
Third-party filing by Tap: Galloway-1 reached total depth with no hydrocarbons and will be plugged and abandoned. Result feeds into assessment of the rest of the block. Repeats Santos's dry-hole report.
21 Aug 2006well test result▲ Good
Third-party filing by Stuart: Derrilyn 4 Hutton test flowed oil at 950 barrels a day. The well will be cased and suspended as a future Hutton producer (Santos 65% operator).
18 Aug 2006drilling result▲ Good
Third-party filing by Stuart: Derrilyn 4 (Santos 65% operator) hit the Hutton Sandstone 11 m high to prognosis with 4-5 m of pay. Stuart says it confirms the north-east extension and may lift field reserves.
17 Aug 2006drilling result● Neutral
Dua-4X ST2 in Vietnam Block 12E found a gas column in limestones but was plugged after technical difficulties. It will be redrilled as Dua-5X, then the rig moves to Blackbird. Gas significance needs further work, following the 30 June discovery.
17 Aug 2006drilling progress report● Neutral
Third-party filing by Drillsearch: Talgeberry 11 and 14 were cased as oil producers and Reliance 1 as a water injector in Santos's Tintaburra program. Tooten 1A was abandoned without reaching target depth.
16 Aug 2006drilling spud● Neutral
Third-party filing by Cue: Wortel-1 began drilling 16 August in the Sampang PSC (Santos 40.5% operator), 7 km west of Oyong. It tests an Oyong-equivalent limestone to about 1,500 m in roughly 20 days, following the Jeruk-3 rig release.
16 Aug 2006drilling spud● Neutral
Third-party filing by Tap: Libris-1 exploration well in WA-246-P (Santos 15%, Apache operator) spudded and was at 599 m. It targets the Upper and Lower Angel Formation, with about 25 days to reach 3,450 m.
16 Aug 2006well test result▲ GoodMajor
Gnu-1 delineation well on Reindeer/Caribou (WA-209P, Santos 45%, Apache operator) tested 26.3 mmcf/d of gas and 61 bbl/d condensate. It logged 378 ft of net pay in the Legendre, 78 ft new. Santos calls it a significant addition to its WA gas resources.
15 Aug 2006drilling progress report● Neutral
Third-party filing by Tap: Galloway-1 (Santos operator) was at 1,680 m after rig equipment delays that have been repaired. The objective is 2 to 5 days away.
15 Aug 2006drilling progress report● Neutral
Third-party filing by Nexus: Galloway-1 was at 1,680 m after repairing rig equipment, and is expected to reach the Top Latrobe target at about 2,121 m later this week. No results yet.
11 Aug 2006drilling scheduled● Neutral
Third-party filing by Stuart: Derrilyn 4 appraisal well (Santos 65% operator, Stuart 35%) will spud 11 August to test the north-east extension of the Derrilyn field to 1,550 m. The Hutton pool has produced about 800,000 barrels.
10 Aug 2006drilling progress report● Neutral
Third-party filing by Drillsearch: the Tintaburra program is half complete with 36 wells drilled, 30 cased as producers or injectors and 6 plugged and abandoned. Whynott 1 exploration well found no oil and is being abandoned; 20 more wells are planned.
8 Aug 2006drilling progress report● Neutral
Third-party filing by Tap: Galloway-1 (Santos 37.5% operator) was at 1,606 m and preparing to run casing, progressing to programme. The objective is expected in 5 to 7 days.
8 Aug 2006drilling progress report● Neutral
Third-party filing by Nexus: Galloway-1 reached 1,606 m and was running casing, on schedule. The objective is about 7 days away. Mean recoverable oil is 28 mmbbl if successful.
3 Aug 2006drilling progress report▲ Good
Third-party filing by Drillsearch: Endeavour 6, Talgeberry 9 and Minni-Ritchi 1 were cased as future oil producers in the Santos-operated Tintaburra program (Santos 89%). Whynott 1 is now drilling.
2 Aug 2006well test result● Neutral
Cue's release: the Jeruk-3 bottom-hole test flowed formation water at up to 6,700 barrels a day, confirming the oil/water contact at about 4,760 m, as already interpreted. The well will be suspended as a potential future producer and the rig released.
2 Aug 2006well test result● Neutral
Santos reports the Jeruk-3 bottom-hole test flowed water at up to 6,700 barrels a day, confirming the oil/water contact near 4,760 m TVDSS, as expected after the July downgrade. The well is suspended as a potential producer; the rig is released.
2 Aug 2006business combination● Neutral
Third-party filing by Westpac Funds Management: Delhi has credit-approved refinancing proposals for its senior debt, expected to complete by end of August. It topped up its reserve by $3.0m, not the $8.0m advised. The 16 August $8.4m payment is the last if the Santos deal proceeds.
2 Aug 2006business combination● Neutral
Third-party filing: Westpac's letter to FIELDS holders restates the Santos scheme, with the scheme meeting in early October and cheques in late October. It notes the unsolicited third-party offer is still being evaluated. No new terms.