PERTH (miningweekly.com) – Oil and gas major Santos has reported a 16% increase in production during the first quarter of 2019, compared with the fourth quarter of 2018, despite the Western Australian operations being impacted by cyclone activity, and facility outages in the Cooper basin.
Production volumes for the three months to March reached 18.4-million barrels of oil equivalent, up from the 15.9-million barrels in the previous quarter, while sales volumes in the same period also increased from 20.9-million barrels to 22.8-million barrels.
Sales revenue for the period was down 3%, to A$1.05-billion, as the average realised oil price declined from A$68.8/bl to A$65.5/bl.
“Santos’ first quarter delivered record production volumes and a record free cash flow for a single quarter,” MD and CEO Kevin Gallagher said on Wednesday.
“Our brownfield growth strategy and disciplined operating model continue to drive strong free cash flow to support our growth ambitions across our five long-life natural gas assets. This disciplined approach to capital allocation has now delivered positive free cash flow for 12 consecutive quarters.”
Gallagher pointed out, however, that Santos’ operations were impacted by cyclone activity in Western Australia towards the end of the quarter, and by facility outages in the Cooper basin.
“The integration of the Quadrant business is proceeding well and we are on track to deliver the integration synergies promised. In the second quarter, we look forward to continued drilling success, including commencing appraisal of the exciting Dorado oil discovery offshore Western Australia.”
Santos on Wednesday maintained its full year production guidance of between 71-million and 78-million barrels of oil equivalent, and its sales volume forecast of between 88-million and 98-million barrels of oil equivalent.