Santos today announced that proved plus probable (2P) petroleum reserves were 1,245 million barrels of oil equivalent (mmboe) as at the end of 2014. This represents an organic five-year 2P reserves replacement ratio of 97% and provides a reserves life of 23 years based on 2014 production of 54 mmboe.
Proved (1P) reserves increased to 622 mmboe. The organic five-year 1P reserves replacement ratio is 116%.
2P reserves declined by 123 mmboe, inclusive of 54 mmboe production. This was primarily due to a 62 mmboe reduction in Gunnedah Basin 2P reserves following a re-assessment during the year, as advised at the company’s investor seminar in November 2014. Excluding the Gunnedah Basin re-assessment, 2P reserves were 6 mmboe or 0.5% lower before 2014 production.
GLNG 1P and 2P reserves increased by 22% and 4% respectively after 2014 production. At the end of 2014, the project’s 2P reserves and Santos portfolio and third party gas had increased to over 7,800 petajoules.
Santos’s 2014 reserves and contingent resources reflect the current lower oil price environment and the company’s future oil price estimates.
Santos’ 2014 Reserves statement is attached to this release.