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Santos today announced an increase in its year-end proved and probable (2P) oil and gas reserves of 134 million barrels of oil equivalent (mmboe), taking the company’s total proved and probable reserves past the 1 billion barrel mark.

This significant increase in 2008 was driven by a substantial boost in Santos’ coal seam gas reserves accompanied by healthy growth in conventional oil and gas reserves.

The growth in coal seam gas reserves was achieved despite Santos monetising over 90 mmboe of 2P reserves via the selldown of a 40% stake in the Gladstone LNG (GLNGTM) project to Petronas.

The overall reserves increase was net of 2008 production of 54.4 mmboe. It represents a 2P reserves replacement ratio for 2008 of 347% and is the company’s fifth successive annual increase in its year end reserves position.

The 2P reserves replacement cost was A$5.90 per barrel in 2008.

Contingent resources increased by 254 million boe to 2.85 billion boe.

Highlights

  • Proved and probable (2P) reserves exceed 1 billion barrels of oil equivalent (boe).
  • 2P reserves increased by 134 million boe, or 226 million boe excluding the GLNG selldown to Petronas.
  • 2P reserves replacement ratio of 347%, or 517% if GLNG selldown is excluded.
  • GLNG joint venture CSG 2P reserves increased by 142% to 3,246PJ, demonstrating the reserves build for GLNG project sanction is well on track.
  • Conventional (excluding CSG) 1P and 2P reserves increased in line with 2008 production.
  • Major contingent resource booking in the Cooper Basin for unconventional reservoir gas and closer spaced drilling into conventional reservoirs.