Santos today held its 2005 Investor Seminar in Adelaide outlining that its strategy is delivering together with the Company’s outlook for future growth drivers.
A full set of the presentation slides has been lodged with the Australian Stock Exchange and is available on the Santos website in the Presentations section of the Investor Centre.
Presentations were delivered by senior Santos executives. Key points made included:
- The Company reaffirmed its production guidance for 2005 of 55 million barrels of oil equivalent with a further increase of 10% in 2006.
- A sharp increase in the level of drilling activity is planned during 2006 which will see a total of 313 wells drilled – up from 193 in 2005 – of which 25 wells will be exploration wells.
- The commencement of a drilling campaign in early 2006 in the Cooper Basin which aims to triple the Company’s share of Cooper Basin oil output from the current 7,000 barrels per day over the next five years. Associated capital expenditure in 2006 will be approximately $160 million in the base case.
- Production and reserves at the new John Brookes gas project offshore Western Australia had exceeded expectations.
- Production is to be ramped up at the newly acquired Fairview coal seam gas project in Queensland with capital expenditure in 2006 of $94 million including spending on a new pipeline.
- A resultant improvement in the production profile which continues to grow at least until the end of the decade. This is driven by the above factors together with a range of new projects coming on stream including Bayu-Undan LNG, Casino, Oyong and Maleo.
- The Timor-Bonaparte Basin has been confirmed as a core area for Santos with the LNG phase of the Bayu-Undan project coming on-stream in early 2006. An active exploration and appraisal program is planned for the area in 2006 to follow up the recent Caldita discovery, which has been confirmed to have a C02 content in the range of 12-13%, and the Lynedoch gas discovery in the newly awarded exploration permit NT/P69.
- The Company outlined details of a four-well appraisal program on the Jeruk oil discovery offshore Indonesia which will commence early in 2006.