Santos Announces Positive Results for Quokka Appraisal Campaign

Santos Ltd said Wednesday it had completed the Quokka-1 appraisal well, which further delineates the Nanushuk reservoir in the Quokka Unit on Alaska’s North Slope.

"The Quokka-1 results demonstrate the exceptional quality of the Nanushuk reservoir and confirm our geological assessment of this significant accumulation", managing director and chief executive Kevin Gallagher said in a press release. "Located strategically to the east of our Pikka phase 1 development, Quokka represents another high-return opportunity that strengthens our position on the North Slope and extends our development runway in Alaska for years to come".

Drilled to a total depth of 4,787 feet, Quokka-1 "encountered a high-quality reservoir with approximately 143 feet of net oil pay in the Nanushuk formation, demonstrating an average porosity of 19 percent", Adelaide, Australia-based Santos said.

"Following a single-stage fracture stimulation, the well achieved a flow rate of 2,190 barrels of oil per day (bopd)", it added.

Reservoir sands "correlate" with the Mitquq-1 discovery well drilled in 2020 about six miles from Quokka-1, Santos said. Both are within the Quokka Unit.

"[F]luid analyses confirm the presence of high-quality, light-gravity oil, supporting strong well performance and improved pricing relative to Pikka oil", Santos added. "Together with additional geological data, these results underpin the potential for a two-drill-site development with production capacity comparable to Pikka phase 1.

"Santos has commenced development planning, including the initiation of key permitting activities".

Santos said it was evaluating the reserves potential of the planned two-drill-site project. It had declared 177 million barrels of oil equivalent in 2C contingent resources for the Quokka Unit as of yearend 2025.

"Santos plans to conduct a comprehensive 3D seismic survey targeting the Nanushuk reservoir during the 2026-27 winter season to further optimize field development planning", the company added.

Meanwhile Pikka phase 1 is now "mechanically complete", Santos said. "First oil from Pikka is expected in the coming weeks", it said.

"After the start of production, pipeline fill and inventory build will occur, followed by first cargo loading and shipment to market", Santos added. "First sales revenue is expected to occur approximately two months following first oil. Plateau capacity of 80,000 bopd is expected in mid-2026".

To contact the author, email jov.onsat@rigzone.com