Santos Limited today reported record third quarter sales revenue of $764 million, driven by a 15% year on year increase in production to 14.9 million barrels of oil equivalent.
The third quarter revenue was 38% higher than the previous record of $553 million in the second quarter of 2005, and up 82% on the third quarter of 2004.
The September quarter result takes Santos’ revenue to $1.78 billion for the first nine months of this year – up 76% on the previous corresponding period and already $283 million higher than the record $1.50 billion full year revenue achieved in 2004.
Total third quarter production of 14.9 million barrels of oil equivalent (mmboe) was 9% above the second quarter result, taking total production for the first three quarters of 2005 to 41.2 mmboe.
The average realised gas price for the third quarter increased by 10% to $3.62 per gigajoule (GJ) from $3.30 per GJ in the same period of 2004, and the average realised oil price of A$77.60 (US$58.00) per barrel was 10% higher than A$70.20 (US$54.06) in the second quarter.
“The third quarter result continues the record performance for Santos in 2005 and reflects the Company’s growth focus of recent years,” Santos’ Managing Director, Mr John Ellice-Flint, said today.
“The increased revenue reflects the start up of a number of new projects at a time of high energy prices,” he said.
Mr Ellice-Flint said the major driver of the improved production was the Mutineer-Exeter development in the Carnarvon Basin offshore Western Australia, where gross third quarter production averaged almost 80,000 barrels of oil per day.
“We are on track to achieve our upgraded 2005 production guidance of approximately 55 mmboe for the full year,” he said.
“Another four new projects due to start up next year are expected to fuel annual production growth of a further 10% in 2006,” he said.
Other developments during the September quarter included:
- The US$466 million acquisition of a controlling interest in Tipperary Corporation, including an operated interest in the world class Fairview field in Queensland;
- First gas production from the $300 million John Brookes development offshore Western Australia;
- The sale of 229 PJ of John Brookes gas over 15 years to a new power station to be built near Kwinana in Western Australia;
- A gas discovery at Caldita 1 in the Timor Sea offshore the Northern Territory;
- The Henry 1 gas discovery in the Otway Basin, offshore Victoria;
- Solid development progress at Casino offshore Victoria, with the project on schedule for the planned Q1 2006 start-up;
- Development drilling under way for the Oyong oil and gas field offshore Indonesia;
- Commencement of development at the Maleo gas field offshore Indonesia;
- Further appraisal of the Jeruk oil discovery offshore Indonesia, including the retrieval of reservoir core samples, flow testing and interpretation of seismic data;
- A staged farm-in to 10 blocks in Kyrgyzstan, central Asia;
- The move to 100% ownership of the Patricia-Baleen gas field and processing facility, the Sole gas field and exploration permit VIC/P55 in the Victorian Gippsland Basin; and
- The sale of an interest in a Joint Petroleum Development Area permit in the Timor Sea containing the Kuda Tasi and Jahal fields to Paladin Resources.