PERTH (miningweekly.com) – Australian oil and gas major Santos has reported record quarterly production and sales volumes for the September quarter.
The ASX-listed company produced 19.8-million barrels of oil equivalent during the third quarter, a 32% increase on the previous corresponding period, setting a new production record.
Production in the September quarter was also 7% higher than the second quarter, with production increases reported at all of Santos’ Australian assets.
The major also reported record sales volumes of 25.2-million barrels of oil equivalent, a 25% increase on the previous corresponding period, with sales revenues reaching A$1.03-billion, the second highest quarterly revenue on record.
“Another highlight of the quarter was the successful appraisal of the Dorado field, which is one of the most exciting growth projects in our portfolio. Following the strong well test results, we are targeting front-end engineering design entry in early 2020,” said Santos MD and CEO Kevin Gallagher.
Santos earlier this month struck a $1.39-billion deal to acquire ConocoPhillips’ northern Australian business, which includes its share in the Darwin liquefied natural gas (LGN) project, and the Bayu-Undan, Barossa and Poseidon assets.
Production associated with the assets being sold was approximately 50 000 barrels of oil equivalent per day for the first half of 2019 and proved reserves were approximately 39-million barrels of oil equivalent at year-end 2018.
Gallagher said that the acquisition of the ConocoPhillips assets delivered shareholders operatorship and control of long-life, low cost natural gas assets and strategic LNG infrastructure aligned to Santos’ own brownfield growth strategy.
“Santos is keen to work with our joint venture partners to achieve alignment to support our Barossa development and to facilitate the future development of the vast discovered resources offshore and onshore Northern Territory.
“This value accretive acquisition will also further reduce our free cash flow breakeven oil price and strengthen our offshore operating and development expertise to drive growth across northern and Western Australia where we have a significant existing resource position.”
Looking ahead to the full year, Santos has estimated that the company would produce between 73-million and 77-million barrels of oil equivalent, with sales volumes targeted at between 90-million and 97-million barrels of oil equivalent.