Production for the opening six months of 2007 increased to 30.1 mmboe, compared with 28.7 mmboe in the first half of 2006.
The stronger production reflects higher gas output due to increased customer demand, the start-up of the Maleo gas field in Indonesia during Q3 2006, and increased oil production from the Mutineer-Exeter field offshore Western Australia.
Total second quarter 2007 sales revenue of $634 million was 8.3% lower than the second quarter in 2006 due to the timing of oil and gas cargoes, and the stronger A$/US$ exchange rate which resulted in a 10% decline in realized A$ oil prices.
Commenting on the second quarter result, Santos' Managing Director, John Ellice-Flint highlighted that the Company's portfolio continues to deliver positive performance across a large number of different fields.
"We remain on track to achieve full year 2007 production of between 59 and 61 mmboe, which is unchanged from the guidance previously provided to the market," Mr. Ellice-Flint said.
"Particularly pleasing was the continued ramp-up of production from the Fairview coal seam gas field, and an ongoing positive performance from the Mutineer-Exeter oil fields. We expect to further increase production from both of these areas with additional drilling in the second half of 2007," he said.
"Our Cooper Oil Project remains on track to deliver a meaningful uplift in oil production, although flooding in central Australia and short term oil pipeline constraints have resulted in the deferral of some production from the second quarter."
Mr. Ellice-Flint said that the record second quarter production built on Santos' recent history of consistently delivering on its forecasts.
"Our large suite of growth options - which include potential LNG projects in Gladstone, PNG and Darwin coupled with developments such as the Reindeer gas field in Western Australia and the Dua and Blackbird oil fields in Vietnam - augur well for our future growth outlook.
"In addition, our 2007 exploration drilling program focused on the Carnarvon and Browse Basins is weighted toward the second half of the year."
Other activities during and subsequent to the second quarter included:
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