2019 Third Quarter Activities Report

Record quarterly production and sales volumes

  • Third quarter production of 19.8 mmboe was a record for Santos and 32% up on the corresponding quarter
  • Production was 7% higher than the second quarter with higher production from all Australian assets
  • Record sales volumes of 25.2 mmboe were 25% higher than the corresponding quarter
  • Sales revenue of $1,030 million was the second highest quarterly revenue on record

Dorado appraisal success

  • Well tests confirmed the field is capable of producing flow rates at the higher end of pre-drill expectations
  • The oil test rate of 11,100 barrels per day (facilities constrained) was one of the highest ever from a North West Shelf appraisal well test
  • Well test results supportive of FEED-entry in early 2020

Strong free cash flow

  • Santos generated $214 million in free cash flow in the quarter, bringing total free cash flow for the nine months to $852 million

Acquisition of ConocoPhillips’ northern Australian interests announced

  • On 14 October, Santos announced the acquisition of ConocoPhillips’ interests in Northern Australia for US$1.39 billion plus a contingent $75 million on Barossa FID1
  • Value accretive acquisition of operating interests in long-life, low cost natural gas assets and strategic LNG infrastructure consistent with Santos’ core asset growth strategy
  • Fully-funded from existing cash resources and new committed debt


Santos Managing Director and Chief Executive Officer Kevin Gallagher said it was another strong quarter for Santos, highlighted by record production and sales volumes, and the second highest quarterly sales revenue on record.

“Santos continues to generate strong free cash flows from the consistent application of our disciplined operating model.”

“Another highlight of the quarter was the successful appraisal of the Dorado field which is one of the most exciting growth projects in our portfolio. Following the strong well test results, we are targeting FEED-entry in early 2020.”

“The acquisition of ConocoPhillips’ northern Australia interests announced earlier this week delivers shareholders operatorship and control of long-life, low cost natural gas assets and strategic LNG infrastructure aligned to our brownfield growth strategy. Santos is keen to work with our joint venture partners to achieve alignment to support our Barossa development and to facilitate the future development of the vast discovered resources offshore and onshore Northern Territory.”

“This value accretive acquisition will also further reduce our free cash flow breakeven oil price and strengthen our offshore operating and development expertise to drive growth across northern and Western Australia where we have a significant existing resource position,” Mr Gallagher said.

1 The acquisition is subject to third-party consents and regulatory approvals.