Santos Reveals 1st Quarter Financial, Operational Results

Australian exploration and production company Santos announced that March 2009 quarter production of 13.2 mmboe was 4% lower than the March 2008 quarter, primarily due to the sale of 40% of GLNG® to PETRONAS effective August 2008 combined with natural field decline.

Oil production was 2% higher than the corresponding period, mainly due to better performance from assets in Western Australia partially offset by lower Indonesian oil production due to natural field decline at Oyong.

Indonesian gas production was 30% higher than the March 2008 quarter as Maleo production is no longer constrained by pipeline capacity restrictions.

Stronger gas prices offset lower international oil prices

March quarter average portfolio gas price of $4.50 per gigajoule was 13% higher than the March quarter of 2008 primarily due to higher LNG prices.

March quarter average realised oil price of A$71.16 per barrel was 33% lower than a year earlier due to lower international oil prices offset by a weaker A$/US$ exchange rate.

Sales revenue was 15% lower than the March 2008 quarter primarily due to lower oil prices partially offset by higher gas sales revenue.

Key activities during the period

The company submitted of a draft Environmental Impact Statement for the GLNG® project.

US$585 million Sino Iron gas sales contract signed enabling restart of the Reindeer gas project in Western Australia.

Santos made a gas discovery with the Peluang-1 well adjacent to the Maleo production facilities in Indonesia.

Santos Chief Executive Officer David Knox said the key milestone for the quarter was the lodgement of a draft Environmental Impact Statement for GLNG, confirming Santos' leadership position amongst the integrated coal seam gas to LNG projects at Gladstone.

"We remain focussed on delivering the base business, targeting significant growth through our LNG projects and focussed opportunities in Asia, whilst at the same time ensuring very tight cost control across the company," Mr Knox said.
 

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