1. 2007 Interim Results 2007 Interim Results John Ellice John Ellice- Flint Flint - Chief Executive Officer Chief Executive Officer Peter Wasow Peter Wasow - Chief Financial Officer Chief Financial Officer 23 August 2007 23 August 2007 2. Webcast Webcast Agenda Agenda Operational and financial highlights Operational and financial highlights Financial performance Financial performance Strategic value drivers and outlook Strategic value drivers and outlook Cooper Basin oil Cooper Basin oil Eastern Australian gas Eastern Australian gas Western Australian oil and gas Western Australian oil and gas LNG projects LNG projects Asian growth Asian growth John Ellice John Ellice- Flint Flint CEO & Managing Director CEO & Managing Director
24
Embed
2007 Interim Results - Santos€¦ · 2007 Interim Results John Ellice-Flint - Chief Executive Officer Peter Wasow - Chief Financial Officer ... ACHIEVEMENTS 6. Operational and financial
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
WA gas price increase, Reindeer FEEDWA gas price increase, Reindeer FEEDWA gas price increase, Reindeer FEED
Cooper Oil Project and acreage extensionCooper Oil Project and acreage extensionCooper Oil Project and acreage extensionRecord productionRecord production
EA gas price increase, CSG expansionEA gas price increase, CSG expansionEA gas price increase, CSG expansion
Operational deliveryShifting to higher
margin
PORTFOLI O AND CAPI TAL MANAGEMENT
USA Sale
15% shareholder cap review
Share buy-back
Vietnam, India entries
GO
AL
SG
OA
LS
AC
HIE
VE
ME
NT
SA
CH
IEV
EM
EN
TS
6.
Operational and financial highlightsOperational and financial highlights
Financial performanceFinancial performance
Strategic value drivers and outlookStrategic value drivers and outlook
Cooper Basin oilCooper Basin oil
Eastern Australian gasEastern Australian gas
Western Australian oil and gasWestern Australian oil and gas
LNG projectsLNG projects
Asian growthAsian growth
WebcastWebcast AgendaAgenda Peter WasowPeter Wasow
Chief Financial OfficerChief Financial Officer
7.
0
50
100
150
200
250
300
350
400
450
500
1st Half 2006
Reported and Underlying ProfitReported and Underlying Profit
$m$m
* Significant I tems detailed in
Reference Slides
Underlying
1st Half 2006
Underlying
1st Half 2007
370
37 407 (108)
6 305 (43)
262
Significant
I tems*
Operating
I tems
Exploration
Expensed Significant
I tems*
2007 Profit
1st Half 2007
8.
0
5
10
15
20
25
30
35
1st Half 2006 1st Half 2007
ProductionProduction
mmboemmboe
30.128.7 0.7
1.20.5
(1.0)
Asia Field declineCasino Darwin
LNG
9.
700
800
900
1000
1100
1200
1300
1400
1st Half 2007
1,313
1,215
Mix
(68)
Liquids
Prices
1st Half 2006
(39)
Gas
Prices
9
ControllableMarket
SalesSales
$m$m
10.
0
20
40
60
80
100
120
140
160
180
200
220
Production CostsProduction Costs
$m$m
185
211(15)
New
field/ volume
(11)
1st Half 2007Production Cost
$7.01/boe
1st Half 2006
Production Cost
$6.47/boe
Costs
11.
10
15
20
25
30
35
1st Half 20071st Half 2006
Netback (Cash margin per boe sold)Netback (Cash margin per boe sold)
Two oil discoveries, with follow-on opportunitiesTwo oil discoveries, with followTwo oil discoveries, with follow--on opportunitieson opportunities
• Blackbird/Dua (STO 37.5% )
- Reservoir and facilit ies studies
underway
- Project sanction in 1H 2008
- Expression of interest prepared
for FPSO supply
- Target first oil in 2010
• Further exploration in 1H 2008
25km
Legend
Santos acreage Gas field
Oil Field Gas Pipeline
Prospect
12W PSCBlackbird/Dua development conceptBlackbird/Dua development conceptBlackbird/Dua development concept
Asian Growth Asian Growth –– Nam Con Nam Con SomSom BasinBasin
Blackbird oil discovery
CanaryCanaryQuitQuit
JayJay
Dua oil discoveryDua oil discoveryDua oil discoveryPeacockPeacock
FalconFalcon
SwanSwan
33.
• Prospective and lightly
explored area
• Large number of fields
discovered in area to
northwest (China)
• First Santos operated
project in Vietnam
• Seismic commitment
accelerated 1 year and
completed in August 2007
• Prospects being generated
for drilling in 2008
Roc / Roc / Horizon Horizon
DiscoveryDiscovery
Vietnam
Rapid progress in first year – exploration underwayRapid progress in first year Rapid progress in first year –– exploration underwayexploration underway
Asian Growth Asian Growth –– Song Hong BasinSong Hong Basin
3D Seismic 3D Seismic -- 20072007
679 sq km679 sq km
PetronasPetronas //Yen Yen TuTu
DiscoveryDiscovery
China
0 50
Kilometres
101-
100/04 PSC
SongSong
HongHong
BasinBasin
Legend
Santos acreage Gas field Oil Field
34.
Indonesia Indonesia –– OyongOyong and Worteland Wortel
Oyong oil development to be online in SeptemberOyongOyong oil development to be online in Septemberoil development to be online in September
• Oil phase
- Barge sail-away mid August
- First oil in September
• Gas phase
- 60km pipeline to Grati
- Gas sales to Indonesia Power
- FEED complete, FID YE 2007
- First gas YE 2008
• Potential Wortel synergies
- Tie back to Oyong
- Seismic & appraisal well in 2008
- First gas 2010
35.
SummarySummary
Leverage to strong energy environmentLeverage to strong energy environmentLeverage to strong energy environment
Track record Track record
of operational of operational
deliverydelivery
Transition toward Transition toward
higher margin higher margin
businessesbusinesses
Focus on Focus on
monetising monetising
contingent contingent
resourcesresources
36.
Disclaimer & Important NoticeDisclaimer & Important Notice
This presentation contains forward looking statements that are sThis presentation contains forward looking statements that are subject to ubject to
risk factors associated with the oil and gas industry. I t is belrisk factors associated with the oil and gas industry. I t is believed that the ieved that the
expectations reflected in these statements are reasonable, but texpectations reflected in these statements are reasonable, but they may hey may
be affected by a range of variables which could cause actual resbe affected by a range of variables which could cause actual results or ults or
trends to differ materially, including but not limited to: pricetrends to differ materially, including but not limited to: price fluctuations, fluctuations,
actual demand, currency fluctuations, geotechnical factors, drilactual demand, currency fluctuations, geotechnical factors, drilling and ling and
production results, gas commercialisation, development progress,production results, gas commercialisation, development progress,
operating results, engineering estimates, reserve estimates, losoperating results, engineering estimates, reserve estimates, loss of market, s of market,