СОТРУДНИЧЕСТВО РОССИИ И ТУРЦИИ

SANTOS - 2018 Fourth Quarter Activities Report

Record sales revenue and strong production

• Record quarterly sales revenue of $1,043 million, up 7% and including record quarterly LNG sales revenue of $449 million, up 11%
• Record annual sales revenue of $3,696 million, up 19%
• Fourth quarter production up 6% to 15.9 mmboe due to sustained strong performance from the core portfolio and acquisition of Quadrant Energy, partially offset by the sale of the non-core Asian assets

Onshore activity levels increasing within disciplined operating model

• A record 305 wells in GLNG drilled in 2018, up 77%. Expect to drill 350-400 wells in 2019
• 85 wells drilled in the Cooper Basin in 2018, up 40%. Expect to drill ~100 wells in 2019, including up to 
  16 exploration wells

Cooper Basin exploration and appraisal success

• The Cooper Basin exploration program resulted in five new field discoveries (four gas and one oil) and at Moomba South, four appraisal wells targeting a significant 2C resource have been brought on-line
• The Moomba South program also discovered new plays in the Granite Wash and Tirrawarra sandstone which are being assessed for further appraisal

Quadrant Energy acquisition completed on 27 November 2018

• On completion, Santos paid an amount of $1.93 billion, comprising the purchase price of $2.15 billion less completion adjustments and cash acquired

Cash generative core portfolio. Balance sheet supportive of growth profile

• As at 31 December 2018, Santos had cash and cash equivalents of $1.3 billion and total debt of 
  $4.9 billion, resulting in net debt of $3.6 billion and gearing of approximately 33%

Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “In 2018, Santos delivered higher production in the onshore business and acquired Quadrant Energy which will provide a significant boost to our production in 2019.”

“Our cash generative asset portfolio set new records for quarterly and annual sales revenues, notwithstanding the divestment of our non-core Asian assets during the year, while our low cost and disciplined operating model enabled more investment in exploration and appraisal to improve ongoing organic resource and reserve replacement.”

“With the completion of the value accretive Quadrant Energy acquisition in November, we are now focused on integrating these low cost, long-life conventional assets and realising the $30-50 million combination synergies per annum.”

“I am pleased that Brett Darley, previously Quadrant’s CEO, has joined Santos to lead our Australian offshore business.”

“In 2019, we will focus on our disciplined growth portfolio, including PNG LNG expansion, Barossa backfill to Darwin LNG, appraisal of the exciting Dorado oil discovery and lifting the drilling activity to grow production and appraisal activity in our onshore business.”

“Santos is positioned for growth across each of our five core assets and we are targeting production of more than 100 mmboe by 2025, almost double 2018’s level,” Mr Gallagher said.

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Earlier: 

2018, November, 22, 10:45:00 CONTINUED AUSTRALIA'S GROWTH IMF - Australia’s recent strong growth is expected to continue in the near term, further reducing slack in the economy and leading the way to gradual upward pressure on wages and prices.

2018, October, 22, 11:35:00 SANTOS LNG UP BY 10% SANTOS - Strong production and revenue growth  Third quarter production up 6% to 15 mmboe due to strong performance across the core assets  Sales revenue up 10% to $973 million, including record quarterly LNG revenues of $405 million  PNG LNG achieved record daily rates equivalent to ~9.2 mtpa annualised production

2018, October, 3, 08:25:00 AUSTRALIA'S RESOURCE EXPORTS: $182 BLN REUTERS - Australia’s government expects the nation’s resource and energy exports to hit a record of A$252 billion ($182 billion) in 2018-2019, buoyed by climbing prices for commodities such as natural gas and by a weaker Australian dollar.

2018, October, 1, 11:00:00 AUSTRALIA'S SANTOS: DOUBLE PRODUCTION REUTERS -India’s annual economic growth surged to a more than two-year high of 8.2 percent in the three months through June, giving Prime Minister Narendra Modi’s government a political boost in the final year of his term before elections.

2018, August, 22, 12:35:00 SANTOS BUYS QUADRANT: $2.15 BLN REUTERS - Australian oil and gas firm Santos Ltd said on Wednesday it has agreed to buy privately held Quadrant Energy for at least $2.15 billion, bagging access to what may be the biggest oil find off Western Australia in over two decades.

2018, June, 15, 10:40:00 AUSTRALIA'S LNG INFRASTRUCTURE REUTERS - The issue comes down to how quickly to build a shared infrastructure system that would include a major trunk pipeline for transporting gas from mammoth new offshore fields owned by various companies in northwest Australia.

2018, June, 6, 11:55:00 AUSTRALIA'S ECONOMY UP BLOOMBERG - Gross domestic product advanced 1 percent from the prior quarter, with overseas shipments accounting for half the expansion, the Australian Bureau of Statistics said in Sydney Wednesday. Economists had forecast a 0.9 percent gain. The economy expanded at an annual pace of 3.1 percent, also beating estimates for a 2.8 percent increase.