Santos has record second quarter

Santos’ portfolio continues to deliver positive performance across a larg....

  Santos’ portfolio continues to deliver positive performance across a large number of different fields, with the company delivering record second quarter production of 15.6 million barrels of oil equivalent (mmboe) for the period to 30 June 2007, an increase of 4.7 percent over the previous corresponding period.Production for the opening six months of 2007 increased to 30.1 mmboe, compared with 28.7 mmboe in the first half of 2006. Santos said the stronger production reflects higher gas output due to increased customer demand, the start-up of the Maleo gas field in Indonesia during the third quarter of 2006, and increased oil production from the Mutineer-Exeter field offshore Western Australia. However, the company’s total second quarter 2007 sales revenue of $634m was 8.3 percent lower than the second quarter in 2006, due to the timing of oil and gas cargoes, and the stronger Australian dollar / US dollar exchange rate, which resulted in a 10 percent decline in realised Australian dollar oil prices. Santos’ Managing Director, John Ellice-Flint said the company remained 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. “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,” Mr Ellice-Flint said. “We expect to further increase production from both of these areas with additional drilling in the second half of 2007.” “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.” Looking forward, Mr Ellice-Flint said Santos’ 2007 exploration drilling program, focused on the Carnarvon and Browse Basins, was weighted toward the second half of the year.