23 Feb 2006investor presentation● Neutral
Presentation of the 2005 results: profit $762m, production 56.0 mmboe, reserves up and gearing 35% (up 3 points). It repeats figures released the same day, so it adds no new information.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
22 Feb 2006drilling scheduled● Neutral
Third-party filing by Stuart Petroleum: it plans 12 Cooper Basin oil wells by end of May 2006. Santos, operator of the Derrilyn block, spudded Derrilyn 3 on 19 February; Stuart holds 35% there.
21 Feb 2006well test result▲ Good
Third-party filing by Sunshine Gas: Latemore 2 on the Roma Shelf (Santos 85% operator) flowed 2.5 million cubic feet a day from the Rewan Formation. The earlier Precipice test flowed 0.29 MMcfd. Drilling continues to 1,479 m.
17 Feb 2006drilling progress report▲ Good
Third-party filing by Sunshine Gas: the Latemore 2 appraisal well on the Roma Shelf (Santos 85% operator, Sunshine 15%) spudded 11 February. It showed strong gas in the Precipice Sandstone at 1,228 m, with a drill stem test about to run.
17 Feb 2006drilling progress report▼ Bad
Third-party filing by Drillsearch: the start of Mulberry 6, the first well of the Santos-operated Tintaburra program (Santos 89%), is delayed by further rig testing and maintenance. It is now expected to begin 18 February 2006.
14 Feb 2006drilling spud● Neutral
Third-party filing by Comet Ridge: drilling of two shallow core holes (Mira-1, Humboldt-1) began at Mahalo, with Santos as operator. The Mahalo 2 test slips to mid-year as Santos says a different rig is needed. Three wells would earn Comet Ridge 40%, Santos and Origin 30% each.
13 Feb 2006drilling spud● Neutral
Third-party filing by Drillsearch: Santos-operated drilling (89%) of the 51-well Tintaburra oil program is due to start 14 February 2006 with the Mulberry 6 development well. Drillsearch holds 10%.
9 Feb 2006drilling result▼ Bad
Third-party report by Origin: Kyeen Creek 1 (Santos 6.5% before, 5.5% after the well) reached 2,587 m. Tests found low permeability sandstones and only thin hydrocarbon indications. The well is being plugged and abandoned.
3 Feb 2006other● Neutral
Santos responded to media speculation about the proposed PNG Gas Project. It confirms it is doing due diligence and negotiating with stakeholders, but no definitive agreements have been concluded.
2 Feb 2006director officer appointment● Neutral
Christian Bennett, formerly Australian High Commissioner to Brunei, joined Santos in the newly created role of Group Executive, Government Strategy & Media Affairs. This is a senior hire, not a change of CEO or chair.
1 Feb 2006production update▲ GoodMajor
First gas flowed from the Santos-operated Casino field offshore Victoria (Santos 50%), ahead of schedule, a little over three years after discovery. Full production is due later in February under a 12-year contract of up to 420 PJ to TRUenergy.
1 Feb 2006resource reserve update● Neutral
Third-party filing by Sunshine Gas: it plans 2006 appraisal and coal seam gas wells. Its Roma Shelf interest is about 15%, with Santos holding about 85% as operator. Roma reserve figures are still year-end 2004 because Santos has not issued 2005 data.
1 Feb 2006production update● Neutral
Third-party filing by AWE (25% partner): confirms first commissioning gas from the Santos-operated Casino project, with full production due later in February. Repeats what Santos announced.
30 Jan 2006material agreement● Neutral
Third-party filing by Methanol Australia: it assigned its May 2006 Stena Clyde rig slot to Santos, which intends to drill in NT/P48 (Evans Shoal) subject to joint venture approval. Santos will reimburse costs and aim to provide a replacement slot by end 2007.
27 Jan 2006drilling progress report● Neutral
Third-party weekly drilling report by Origin: Kyeen Creek 1 is drilling in the Surat Basin. Santos holds a minor 6.5% interest, falling to 5.5% after the well. No result yet.
25 Jan 2006quarterly activities report▲ GoodMajor
Santos reports record 2005 sales revenue of $2.46 billion, up 64%, on production up 19% to 56.0 mmboe. It targets 60-61 mmboe in 2006. Oyong first oil is delayed to late first half 2006, with project cost up about 30% to US$130m.
25 Jan 2006drilling scheduled▲ GoodMajor
Santos announced a 25-well, $225m exploration program for 2006, up from $187m spent in 2005. Seventeen wells are outside Australia, including Egypt and the Gulf of Mexico. Lynedoch and Evans Shoal South come later in the year.
24 Jan 2006drilling spud● Neutral
Third-party filing by Cue: the Jeruk-3 appraisal well began drilling 24 January 2006 in the Sampang PSC, with Santos as operator (40.5%). It targets about 5500 m measured depth and is expected to take about 90 days.
20 Jan 2006farm in farm out agreement● Neutral
Third-party filing by Caspian: Santos will not take part in shallow oil layers in four Kyrgyz licences. It stays committed to its farm-in over ten licences, funding up to US$24m over 3.5 years to earn 80%.
20 Jan 2006drilling result▼ BadMajor
Nyari 1, an exploration well offshore East Java (Santos 67.5%, operator), reached 3693 m. The Kujung Formation target was water bearing, with no hydrocarbons. The well will be plugged, and the rig moves to Jeruk 3.
18 Jan 2006joint venture update● Neutral
Third-party filing by Great Artesian Oil and Gas: its Smegsy-1 gas well will connect to a pipeline system operated by Santos, with commissioning around 19 February 2006. Gas will be processed at Moomba.
16 Jan 2006drilling scheduled● Neutral
Third-party filing by Drillsearch: Santos, operating with 89%, has a drilling rig assembled for a 51-well oil program in the Tintaburra Block. Drilling is expected to start in late January 2006, with a second rig planned for April.
12 Jan 2006drilling result● Neutral
Third-party report: Currambar-1, the final Nockatunga well, was cased and suspended after both tests failed on packer problems. A later through-casing test is planned. Santos is operator.
12 Jan 2006joint venture update● Neutral
Third-party filing by Comet Ridge: the Santos-operated Mahalo coal seam gas earn-in program (three wells) restarts when a rig arrives in early February 2006. Most likely gas in place is over 400 Bcf.
5 Jan 2006drilling result▲ Good
Third-party report: Muthero-3 was cased as a future Birkhead oil producer after one test flowed 1030 barrels a day. Currambar-1 spudded 29 December 2005. Santos operates both Nockatunga wells (59.064%).
5 Jan 2006joint venture update● Neutral
Third-party filing by Cue: Cue gave Medco 6.818182% of its 15% Jeruk interest to cancel a roughly US$50m in-kind premium, and gets about US$6m back. Santos stays operator with 45% of Jeruk, in the Sampang PSC.