Santos Q3 Production Climbs, Australia

October 18, 2012

Santos today announced a 6% lift in third quarter production to 13.5 million barrels of oil equivalent (mmboe) and record quarterly sales revenue of $851 million.

Gas production of 58 PJ (10 mmboe) was 3% above the corresponding period, with record production from the Carnarvon Basin partially offset by lower Cooper Basin and Indonesian gas production.

The average gas price of $5.46/GJ was up 19% on the corresponding period, primarily reflecting higher Indonesian gas prices following the favourable Maleo price review, the commencement of production from Reindeer in Western Australia and stronger LNG sales volumes from Darwin LNG.

Sales revenue of $851 million for the September quarter was 15% higher driven by higher sales volumes and higher gas prices. 2012 year-to-date sales revenue of $2.3 billion is also a record.

Production guidance for 2012 is maintained at 51 to 55 mmboe.

Santos Chief Executive Officer David Knox said that strong performance from the base business had driven another lift in quarterly production and record sales revenue.

“The third quarter demonstrates the growth in our base business. The quarter also stands out for the highest quarterly sales revenue in the company’s history.”

“The PNG LNG and GLNG projects remain on track for first LNG in 2014 and 2015 respectively,” Mr Knox said.

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LNG World News Staff, October 18, 2012; Image: Santos