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Adverse weather in Central and Western Australia affects first quarter production

  • Over the March quarter, adverse weather conditions in Central and Western Australia affected Santos’ operations. As a result, production of 11 million barrels of oil equivalent (mmboe) was 11% lower than the corresponding period.
  • Almost double the average rainfall was received at Moomba in the March quarter. This, combined with local floods, negatively impacted Cooper Basin production and drilling operations.
  • Production and drilling activities offshore Western Australia were interrupted on five occasions due to three cyclones and two tropical lows.
  • The adverse weather experienced in the March quarter will result in an estimated 2 mmboe (net to Santos) of production being deferred from 2011.
  • Production guidance for 2011 is reduced to 47 to 50 mmboe.

Key activities during the period

  • The US$16 billion, 7.8 million tonne per annum GLNG project in Queensland was sanctioned; first LNG exports scheduled for 2015.
  • A significant gas discovery at the Zola-1 exploration well, located in the Carnarvon Basin offshore Western Australia. The well intersected more than 100 metres of net pay in a good quality reservoir.
  • Year-end 2P (proved and probable) reserves increased to 1,445 mmboe, representing a reserves replacement ratio of 110% and the company’s seventh successive annual increase in its reserves.
  • The first of three new purpose-built Saxon drilling rigs started operating in the Cooper Basin.
  • Pre-FEED contracts awarded for Bonaparte LNG to Granherne (upstream) and DORIS Engineering (midstream).
  • Four growth projects in the base business (Chim Sáo, Spar, Reindeer and Wortel) are progressing well and remain on schedule for first production this year.