Fourth Quarter Activities Report
For period ending 31 December 2018
ASX: STO | ADR: SSLZY
24 January 2019
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.
Comparative performance (Santos share including Quadrant Energy)1
Santos share Units Q4 2018 Q3 2018 Change 2018 2017 Change
Production mmboe 15.9 15.0 6% 58.9 59.5 -1%
Sales volume mmboe 20.9 20.3 3% 79.2 83.4 -5%
Ave. realised oil price $/bbl 68.8 81.1 -15% 75.1 57.9 30%
Sales revenue $million 1,043 973 7% 3,696 3,107 19%
Capital expenditure2 $million 272 180 51% 759 682 11%
1 Quadrant Energy included from completion of the acquisition on 27 November 2018.
2 Capital expenditure including restoration expenditure and acquisition of exploration assets but excluding capitalised interest.
Media enquiries Investor enquiries Santos Limited ABN 80 007 550 923
Daniela Ritorto Andrew Nairn GPO Box 2455, Adelaide SA 5001
+61 8 8116 5167 / +61 (0) 455 319 770 +61 8 8116 5314 / +61 (0) 437 166 497 T +61 8 8116 5000 F +61 8 8116 5131
daniela.ritorto@santos.com andrew.nairn@santos.com www.santos.com
Sales volumes (Santos share including Quadrant Energy)1
Product Unit Q4 2018 Q3 2018 Q4 2017 2018 2017
LNG 000 t 779.3 738.6 839.5 2,791.2 3,066.9
Domestic sales gas & ethane PJ 54.6 55.7 56.5 216.4 224.4
Crude oil 000 bbls 2,493.9 2,296.7 2,639.9 10,088.4 10,000.5
Condensate 000 bbls 1,226.7 1,063.3 1,064.2 4,179.5 4,304.8
LPG 000 t 51.6 41.3 51.7 158.2 183.9
Sales
Own product mmboe 16.3 15.0 14.1 58.6 58.4
Third party mmboe 4.6 5.3 7.7 20.6 25.0
Total sales volume mmboe 20.9 20.3 21.8 79.2 83.4
1 Quadrant Energy included from completion of the acquisition on 27 November 2018.
Fourth quarter sales volumes were higher than the prior quarter due primarily to the completion of the acquisition of
Quadrant Energy on 27 November 2018, partially offset by completion of the sale of Santos’ non-core Asian asset
portfolio on 6 September 2018.
Sales revenues (Santos share including Quadrant Energy)1
Product Unit Q4 2018 Q3 2018 Q4 2017 2018 2017
LNG $m 449 405 323 1,453 1,178
Domestic sales gas & ethane $m 313 272 265 1,101 1,027
Crude oil $m 171 186 179 757 579
Condensate $m 85 84 65 300 235
LPG $m 25 26 29 85 88
Sales
Own product $m 818 724 563 2,699 2,181
Third party $m 225 249 298 997 926
Total sales revenue $m 1,043 973 861 3,696 3,107
3rd party product purchases $m 227 197 229 831 696
1 Quadrant Energy included from completion of the acquisition on 27 November 2018.
Fourth quarter sales revenues were higher than the prior quarter primarily due to higher average LNG and domestic
sales gas prices and the completion of the acquisition of Quadrant Energy on 27 November 2018, partially offset by
lower crude oil and liquids prices and completion of the sale of Santos’ non-core Asian asset portfolio on 6 September
2018.
Average realised prices
Unit Q4 2018 Q3 2018 Q4 2017 2018 2017
LNG price US$/mmBtu 10.96 10.43 7.33 9.91 7.31
Domestic gas price US$/GJ 5.73 4.90 4.68 5.09 4.57
Oil price US$/bbl 68.81 81.09 67.85 75.05 57.85
Condensate price US$/bbl 69.11 78.78 61.33 71.87 54.59
LPG price US$/t 488.12 616.89 567.71 537.61 479.78
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 2 of 4
Production (Santos share including Quadrant Energy)1
Product Unit Q4 2018 Q3 2018 Q4 2017 2018 2017
Sales gas to LNG plant PJ 31.7 32.4 31.6 115.0 125.7
Domestic sales gas & ethane PJ 46.5 40.2 40.3 170.5 158.0
Crude oil 000 bbls 1,222.0 1,457.8 1,504.0 5,870.2 6,379.9
Condensate 000 bbls 929.4 865.9 888.4 3,208.5 3,350.7
LPG 000 t 39.0 34.5 37.8 145.7 145.2
Total production mmboe 15.9 15.0 15.0 58.9 59.5
1
Quadrant Energy included from completion of the acquisition on 27 November 2018.
Fourth quarter production was higher than the prior quarter due primarily to the completion of the of acquisition of
Quadrant Energy on 27 November 2018, partially offset by completion of the sale of Santos’ non-core Asian asset
portfolio on 6 September 2018.
2018 Guidance (excluding Quadrant Energy)
Excluding the acquisition of Quadrant Energy, 2018 sales volumes of 77.2 mmboe were above the upper end of
guidance (74-76 mmboe) and production of 57.1 mmboe was within guidance (56-58 mmboe). Upstream production
costs of approximately $8.00/boe were at the lower end of guidance ($8.0-8.6/boe) and capital expenditure of
$732 million was toward the lower end of guidance ($725-775 million).
Updated 2018 guidance shown in the table below excludes the acquisition of Quadrant Energy.
Previous guidance Updated guidance
2018 Guidance Item
(excluding Quadrant) (excluding Quadrant)
Sales volumes 74-76 mmboe 77.2 mmboe
Production 56-58 mmboe 57.1 mmboe
Upstream production costs $8.0-8.6/boe ~$8/boe
Depreciation, depletion and amortisation (DD&A) $650-700 million No change
Capital expenditure $725-775 million $732 million
Further detail of 2018 capital expenditure, including exploration and evaluation expenditure, is reported in the table on
page 11 of this report.
Guidance on 2018 financial outcomes above is preliminary and subject to finalisation of the company’s accounting and
audit processes, and Board review. As such, actual results for the year ended 31 December 2018 may differ from the
guidance given in this update.
Santos will announce its results for the year ended 31 December 2018 on 21 February 2019. The full-year report
(incorporating Appendix 4E) and associated investor briefing presentation will be available on Santos’ website at
www.santos.com. A live webcast briefing, including analyst/investor questions, will be available on Santos’ website from
11:00am AEDT on 21 February 2019.
2019 Guidance
Santos expects 2019 sales volumes to be in the range of 88-98 mmboe and production to be in the range of
71-78 mmboe. Further 2019 guidance will be provided at Santos’ 2018 full-year results on 21 February 2019.
The 2019 first quarter activities report will be released on Wednesday 17 April 2019.
2019 Annual General Meeting
The 2019 Annual General Meeting will be held on Thursday 2 May 2019 at the Adelaide Oval commencing at 10:00am
ACST.
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 3 of 4
Oil price hedging
3.2 million barrels of oil hedging expired in the fourth quarter under the zero-cost three way collar hedges.
As a result of the Quadrant acquisition, 1.4 million barrels of 2019 oil hedges were novated to Santos. The following
oil price hedging positions were in place as at 14 January 2019.
2019 Open oil price positions 2019
Swaps (barrels) 990,000
Brent fixed swap price ($/bbl) US$63.23
Re-participating swaps (barrels)1 480,000
Brent fixed swap price ($/bbl) US$67.39
Brent long call price ($/bbl) US$76.00
Zero-cost collars (barrels)2 3,431,000
Ceiling ($/bbl) US$79.27
Floor ($/bbl) US$45.00
1
When Brent price is below the weighted average long call price, Santos realises fixed swap price. When Brent price is above the call strike price, Santos
realises Brent price less the difference between the long call price and the fixed swap price.
2 When Brent price is above the weighted average ceiling price, Santos realises ceiling price. When Brent price is between the floor and ceiling price,
Santos realises Brent price. When Brent price is below the floor price, Santos realises floor price.
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 4 of 4
Cooper Basin
Santos share Units Q4 2018 Q3 2018 Q4 2017 2018 2017
Sales volume
Sales gas and ethane
Own product PJ 16.3 17.8 14.0 63.7 66.6
Third party PJ 0.9 1.3 0.6 3.6 2.6
Total PJ 17.2 19.1 14.6 67.3 69.2
Condensate
Own product 000 bbls 376.7 429.3 314.6 1,561.4 1,556.8
Third party 000 bbls 30.2 58.0 8.6 240.2 172.6
Total 000 bbls 406.9 487.3 323.2 1,801.6 1,729.4
LPG
Own product 000 t 30.3 33.8 40.2 112.0 134.4
Third party 000 t 13.5 4.2 5.2 26.6 16.5
Total 000 t 43.8 38.0 45.4 138.6 150.9
Crude oil
Own product 000 bbls 709.3 558.2 511.4 2,344.3 2,175.2
Third party 000 bbls 1,098.1 1,205.2 1,131.5 4,848.7 3,981.1
Total 000 bbls 1,807.4 1,763.4 1,642.9 7,193.0 6,156.3
Total sales volume mmboe 5.5 5.8 4.9 21.6 21.0
Total sales revenue $million 272 306 212 1,080 803
Production
Sales gas and ethane PJ 15.6 15.3 15.4 60.6 58.4
Condensate 000 bbls 231.5 253.1 247.9 933.4 881.7
LPG 000 t 32.7 30.2 27.9 125.7 110.4
Crude oil 000 bbls 845.7 901.9 647.8 3,175.5 2,624.4
Total production mmboe 4.0 4.0 3.7 15.5 14.4
Capital expenditure $million 80 57 61 245 199
2018 Cooper Basin production was up 8% year-on-year to 15.5 mmboe, demonstrating the success in arresting
production decline and returning the asset to growth.
With four rigs in operation in the fourth quarter, 26 wells were drilled comprising seven exploration wells, twelve appraisal
wells and seven development wells. A record spud to oil on-line time of 28 days was achieved with Cooroo North West
2 as the onshore business continues to set new operating limits to efficiently commercialise the vast discovered resource
that remains undeveloped. A total of 85 wells were drilled in 2018 and Santos expects to drill ~100 wells in 2019.
The eight well Moomba South appraisal program continued during the quarter with four wells successfully brought on-
line at the end of the quarter and two new plays discovered. A summary of exploration and appraisal activity is included
on page 12 of this report.
Also during the quarter, Santos announced a project to convert beam pumps on oil wells to solar and batteries at
56 sites. The solar beam pump will reduce emissions and waste from oil production, saving 140 barrels of oil per day
which is required to fuel the pumps and instead will be sold for beneficial use. The A$16 million project will be partially
funded by a grant of A$4.2 million from the Australian Renewable Energy Agency (ARENA).
In January, Santos announced it had executed binding agreement extensions with Beach Energy and Senex Energy for
gas processing and related gas liquids purchases at the Moomba gas facilities. The gas processing agreement
extensions are expected to result in the production of up to 18 TJ of sales gas per day, or 20 PJ over the three year
term.
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 5 of 4
Queensland & NSW 1
Santos share Units Q4 2018 Q3 2018 Q4 2017 2018 YTD 2017 YTD
Sales volume
GLNG Joint Venture
LNG 000 t 378.1 343.5 477.1 1,452.3 1,630.7
Domestic contracts PJ 5.5 7.0 7.5 25.5 26.4
Eastern Qld (non-GLNG)2 PJ 6.1 6.1 4.2 23.6 17.7
Total sales volume3 mmboe 5.5 5.5 6.4 22.0 22.6
Total sales revenue3 $million 282 259 216 1,004 758
Production
GLNG Joint Venture
Sales gas to LNG PJ 9.7 9.6 10.7 37.8 41.8
Domestic contracts PJ 2.7 2.6 0.7 9.9 3.1
Eastern Qld (non-GLNG)2 PJ 5.8 5.8 5.6 22.6 22.1
NSW 1 PJ 0.2 0.2 0.2 0.8 0.7
Total production3 mmboe 3.2 3.1 3.0 12.2 11.7
Capital expenditure $million 70 64 59 244 190
1
New South Wales entered the core portfolio on 1 January 2018.
2
Combabula, Scotia (Santos legacy domestic volumes), Spring Gully and Denison.
3
Total sales volume, sales revenue and production include minor condensate production from Denison and sales gas from NSW assets. Denison
conventional assets were sold in April 2018.
GLNG operational data
Units Q4 2018 Q3 2018 Q4 2017 2018 2017
(gross)
Sales gas to domestic market PJ 25 29 35 108 127
LNG produced1 000 t 1,198 1,178 1,585 4,832 5,431
Sales gas to LNG plant
GLNG equity gas PJ 36 37 29 143 124
Santos portfolio gas PJ 15 15 15 59 62
Third-party PJ 26 19 44 94 120
Total sales gas to LNG plant PJ 77 71 88 297 306
LNG cargoes shipped 20 20 26 80 89
1 Includes LNG produced from GLNG equity gas, Santos portfolio gas and third-party quantities.
Annual LNG production was lower than the prior year primarily due to the GLNG joint venture partners diverting about
40 PJ of gas to the domestic market. The diverted gas, originally slated for export cargoes and equivalent to
~0.7 million tonnes of LNG, was sold to east coast domestic customers. When combined with 4.8 million tonnes of LNG
exported, annual LNG-equivalent production was ~5.5 million tonnes.
Gross GLNG-operated upstream sales gas production increased to 585 TJ/d at the end of the quarter, supported by
growth in Scotia production and continued steady incline in Roma.
Gross daily production from Fairview increased to 431 TJ/day at the end of the quarter. Focus continues to be on
improving well availability. Gross daily production from Roma increased to 82 TJ/day at the end of the quarter. Field
production is expected to continue building as new development areas come online. Drilling continues in the Roma East
project with 121 wells drilled to date. 80 wells are now on flare with early dewatering continuing.
Gross daily production from the Scotia field grew to 63 TJ/d at the end of the quarter. Production from the field continues
to grow as the reservoir de-pressures. Production from the Arcadia field remained steady. Drilling continues in the
Arcadia Valley project with 39 wells drilled to date. First production from this next phase of development is expected in
late 2019.
Santos’ share of production from the non-operated Combabula and Spring Gully fields was 42 TJ/day.
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 6 of 4
92 wells were drilled across the GLNG acreage in the fourth quarter with a record number of wells drilled (305) and
connected (300) in 2018. In 2019, 350-400 wells are expected to be drilled.
58 development wells were drilled across Santos’ non-operated Eastern Queensland acreage in the quarter.
Also during the quarter, Santos as operator was appointed preferred tenderer to explore new acreage in a 50-50 joint
venture with Shell. The PLR201718-2-5 licence covers approximately 400 square kilometres, 19 kilometres east of the
town of Surat and was released by the Queensland Government exclusively to boost domestic gas supply on the east
coast.
PNG
Santos share Units Q4 2018 Q3 2018 Q4 2017 2018 2017
Sales volume
PNG LNG
LNG1 000 t 314.0 303.5 282.6 1,001.8 1,101.2
Condensate 000 bbls 460.4 327.3 378.1 1,289.8 1,608.4
Crude oil 000 bbls 4.1 2.7 3.4 12.1 15.3
Total sales volume mmboe 3.4 3.2 3.0 10.8 12.0
Total sales revenue $million 215 191 139 621 526
Production
PNG LNG
Sales gas to LNG1 PJ 17.1 17.8 16.4 58.5 65.3
Condensate 000 bbls 363.6 378.9 354.4 1,250.5 1,474.2
Crude oil 000 bbls 3.3 3.7 4.1 12.0 19.1
Total production mmboe 3.3 3.4 3.1 11.2 12.6
Capital expenditure $million 8 16 10 39 32
1 Includes SE Gobe
PNG LNG operational data
Units Q4 2018 Q3 2018 Q4 2017 2018 2017
(gross)
Production
LNG Mt 2.2 2.2 2.1 7.4 8.3
Sales gas to LNG plant PJ 129 133 123 439 491
Condensate1 000 bbls 2,664 2,818 2,611 9,243 10,887
Sales gas (SE Gobe)2 PJ 2 2 4 7 17
LNG cargoes shipped 30 30 29 98 110
1 Measured at the Kutubu entry point.
2 Purchased by PNG LNG.
Continued strong performance from PNG LNG during the quarter saw sales volumes and production in-line with the
prior quarter. The LNG plant operated at an annualised rate of 8.7 mtpa during the fourth quarter and achieved daily
rates in excess of 9 mtpa annualised. Annual production in 2018 was however lower than the prior year primarily due
to the impact of a severe earthquake in the first half.
PNG LNG expansion opportunities continue to be progressed with a proposal for Santos to farm-in to PRL 3 (P’nyang)
under negotiation.
Santos along with the other PNG LNG parties and the Papua LNG Joint Venture are also continuing discussions to
build alignment for the proposed construction of three additional LNG trains at the PNG LNG site, with two trains to
process gas from the Papua LNG project and one train for the proposed PNG LNG expansion.
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 7 of 4
Northern Australia
Santos share Units Q4 2018 Q3 2018 Q4 2017 2018 2017
Sales volume
Darwin LNG
LNG 000 t 87.2 91.6 79.8 337.1 334.8
Bayu Undan
Condensate 000 bbls 76.5 54.3 157.1 283.5 538.0
LPG 000 t 8.0 3.6 6.3 19.9 33.0
Total sales volume mmboe 1.0 1.0 1.0 3.6 4.0
Total sales revenue $million 57 51 41 183 153
Production
Darwin LNG
Sales gas to LNG PJ 4.8 5.1 4.4 18.7 18.5
Bayu Undan
Condensate 000 bbls 97.0 66.3 155.8 307.0 511.5
LPG 000 t 6.3 4.4 9.9 20.0 34.8
Total production mmboe 1.0 1.0 1.1 3.7 4.0
Capital expenditure $million 13 24 7 66 63
Darwin LNG / Bayu-Undan
Units Q4 2018 Q3 2018 Q4 2017 2018 2017
operational data (gross)
Production
LNG 000 t 921 934 902 3,343 3,315
Sales gas to LNG plant PJ 57 57 55 205 200
Condensate 000 bbls 1,241 808 1,299 3,588 5,606
LPG 000 t 66 52 77 213 312
LNG cargoes shipped 16 14 14 54 51
Darwin LNG sales volumes and production were consistent with prior quarter, in-line with the delivery schedule.
Santos announced on 3 December 2018 that the 3-well Bayu Undan infill program was delivered 40% under budget
and the final well brought on-line during the quarter, over three months ahead of schedule. The program’s success has
resulted in delivery of higher liquids production and increased offshore well capacity. As a result, condensate and LPG
production were significantly higher than the previous quarter.
Following FEED entry in April 2018, detailed engineering design for the Barossa development is being advanced across
a number of fronts with a final investment decision targeted towards the end of 2019. Bids for the Subsea Production
System have been evaluated and contract award is expected in the first quarter of 2019. The FPSO design competition
between Modec and the TechnipFMC/Samsung consortium is progressing well.
The successful development of Barossa would extend the operating life of Darwin LNG for more than 20 years and
deliver ~9 mmboe average annual net production to Santos.
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 8 of 4
Western Australia1 (excluding Quadrant Energy acquisition)
Santos share Units Q4 2018 Q3 2018 Q4 2017 2018 2017
Sales volume
Sales gas PJ 14.0 13.5 12.2 56.3 52.2
Condensate 000 bbls 176.8 193.8 203.5 694.4 422.7
Crude oil 000 bbls 111.4 110.0 416.6 661.2 1,401.7
Total sales volume mmboe 2.7 2.6 2.7 11.0 10.8
Total sales revenue $million 79 82 96 328 324
Production
Sales gas PJ 13.9 12.9 13.6 54.8 51.2
Condensate 000 bbls 142.2 165.8 128.0 615.6 472.7
Crude oil 000 bbls 118.9 118.3 279.0 712.9 1,310.0
Total production mmboe 2.6 2.5 2.7 10.7 10.5
Capital expenditure $million 38 11 22 66 79
1 Includes Western Australia oil assets. The comparative periods have been restated accordingly. Excludes Quadrant Energy.
Sales gas sales volumes and production were higher than the prior quarter primarily due to higher customer nominations.
Quadrant Energy (27 November to 31 December 2018)
Santos share Units Q4 20181
Sales volume
Sales gas PJ 7.6
Condensate 000 bbls 106.8
Crude oil 000 bbls 570.9
Total sales volume mmboe 2.0
Total sales revenue $million 80
Production
Sales gas PJ 8.3
Condensate 000 bbls 95.0
Crude oil 000 bbls 254.1
Total production mmboe 1.8
Capital expenditure $million 27
1 27 November to 31 December 2018
On 27 November 2018, Santos announced the completion of the acquisition of Quadrant Energy. On completion Santos
paid an amount of $1.93 billion, comprising the purchase price of $2.15 billion less completion adjustments and cash
acquired. The completion amount was fully funded from Santos’ existing cash resources and $1.2 billion of new debt
facilities.
2018 full-year production from the Quadrant Energy assets was approximately 18 mmboe.
During the fourth quarter, the Van Gogh infill project saw the drilling and completion of two subsea wells and connection
into existing offshore infrastructure. The wells were brought online in January 2019.
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 9 of 4
Asia1
Santos share Units Q4 2018 Q3 2018 Q4 2017 2018 2017
Sales volume
Sales gas PJ - 3.0 4.9 11.5 21.6
Condensate 000 bbls - 0.9 2.3 5.7 5.1
Crude oil 000 bbls - 420.6 577.0 1,651.2 2,400.7
Total sales volume mmboe - 0.9 1.4 3.6 6.1
Total sales revenue $million - 47 65 181 256
Production
Sales gas PJ - 3.3 4.9 11.7 21.6
Condensate 000 bbls - 1.8 2.1 6.7 5.0
Crude oil 000 bbls - 433.9 573.0 1,715.7 2,409.6
Total production mmboe - 1.0 1.4 3.7 6.1
Capital expenditure $million 1 3 17 8 34
1 As at 1 January 2018, the ‘Other’ reporting segment was restructured to comprise Santos’ Asian assets only. New South Wales entered the core portfolio and
is now reported under the segment ‘Queensland and NSW’ and WA Oil is now reported under the segment ‘Western Australia’. The comparative periods have
been restated accordingly.
Santos announced the completion of the sale of its producing Asian assets on 7 September 2018.
Santos completed the sale of its exploration assets in Malaysia during the fourth quarter. Completion for certain
exploration assets in Vietnam and Bangladesh remains subject to customary consents and regulatory approvals.
Santos has agreed to sell its 50% interest in the Northwest Natuna Production Sharing Contract in Indonesia, which
contains the undeveloped Ande Ande Lumut oil field, to AWE Holdings Singapore Pte Ltd (an entity held by Mitsui).
Completion of the sale is subject to customary consents and regulatory approvals and is expected in the coming months.
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 10 of 4
Corporate, exploration and eliminations
Santos share Units Q4 2018 Q3 2018 Q4 2017 2018 2017
Total sales volume mmboe 0.8 1.2 2.3 4.6 6.6
Total sales revenue $million 58 37 92 219 287
Capital expenditure $million 35 6 15 64 85
Sales volumes and revenues in the corporate segment primarily represents gas trading activities.
Fourth quarter capital expenditure included $18 million for seismic acquisition and $14 million for exploration and
evaluation activities, primarily in the NT, not recorded against core assets.
Capital expenditure (including Quadrant Energy)
Total exploration, evaluation and development expenditure, including Quadrant Energy from 27 November 2018, is
summarised in the table below.
$million Q4 2018 Q3 2018 Q4 2017 2018 2017
Capital expenditure
Exploration1 26 14 27 78 113
Evaluation 34 34 29 92 99
Development and other capex (inc restoration) 211 132 148 589 470
Capital expenditure excl capitalised interest 272 181 194 759 682
Capitalised interest 4 (0) 1 6 6
Total capital expenditure1 275 181 195 766 688
Exploration and evaluation expensed
Exploration 18 13 15 67 64
Evaluation 25 4 12 38 29
Total current year expenditure 43 17 27 105 93
Write-off of amounts capitalised in prior years - - (2) - 3
Total expensed 43 17 25 105 96
1 Includes acquisition of exploration assets
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 11 of 4
Exploration and appraisal activity
Cooper Basin
During the quarter, seven near field exploration wells and 12 appraisal wells were drilled, with a further appraisal well
drilling ahead at year end.
The exploration program resulted in five new field discoveries (four gas and one oil).
Six of eight planned Moomba South appraisal wells had been completed to the end of December. Four wells were
fracture stimulated and brought online by the end of the quarter, and a further well has been cased and suspended and
awaits fracture stimulation and testing. Two wells remain to be drilled in the current campaign. The program seeks to
delineate and establish initial FEED input to the potential development of a large unexploited gas contingent resource
in the Patchawarra reservoirs on the southern flanks of the Moomba high. Secondary exploration targets include the
Granite Wash and Tirrawarra sandstones. An update on the outcome of the appraisal will be made following the program
completion.
Elsewhere in the Cooper, seven appraisal wells (four gas and three oil) were drilled resulting in six being cased and
suspended for future production.
Eastern Queensland
In the Mahalo JV (ATP 1191), five appraisal wells were drilled, cased and suspended – the Straun Pilot (Straun-2 vertical
corehole, Straun-3 lateral), the Sirus Road pilot (Sirius Road-1 vertical corehole, Sirius Road 2 lateral) and the Memooloo
corehole. These wells are designed to convert significant remaining contingent and prospective resource potential to
reserves category. All wells are on-line and flowing water at encouraging initial rates.
ATP2040, a 393km2 block in the Bowen Basin was granted to Santos (50% and operator). Exploration will target Early
Permian sandstones and commence on 1 January 2019 for a six year term.
Western Australia
During the quarter, preparations continued for a multi-well Santos-operated drilling program that will commence in March
2019 with Corvus-2 in the Dampier Sub-basin, before moving to the Bedout Basin to drill the Dorado-2 and Dorado-3
wells, appraising the 2018 Dorado-1 oil and gas discovery. In addition, the Roc South-1 near field exploration well will
test an oil and gas prospect analogous and adjacent to the Dorado field.
Planning for the 3,326km2 Keraudren 3D dual purpose (exploration delineation and Dorado development preparation)
seismic survey in the Bedout Sub-basin progressed, with acquisition anticipated to commence in March 2019.
Northern Australia
In the McArthur Basin two water monitoring bores were installed during the quarter and monitoring commenced to
support applications for multi-well exploration activity in 2019.
In the Amadeus Basin final approvals and agreements were progressed to support the drilling of the planned 2019
Dukas 1 wildcat well. Dukas will test the gas-bearing potential of a large pre-salt prospect in the southern Amadeus
basin.
In the offshore Bonaparte Basin, processing of the Beehive 3D seismic survey has commenced.
PNG
The Muruk-2 appraisal well spudded 10 November. At 31 December the well had reached a depth of 3,127m MD. The
primary target Toro Sandstone, is prognosed to be 350-400m below current depth at the end of the quarter.
Seismic activity
No new seismic acquisitions were undertaken in the fourth quarter of 2018.
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 12 of 4
Drilling summary
Near-field exploration (NFE) / Appraisal wells Development wells
Cooper Basin oil Cooper Basin gas
Well name Basin/area Santos Well status Well name Basin/area Santos Well status
Cooroo North Big Lake 147* SA 66.6% C&C, successful
QLD 55.5% C&C, successful
West 2
Moorari 15 SA 66.6% C&S, successful
Jarrar 4 QLD 55.5% C&S, successful
Moorari 16 SA 66.6% C&S, successful
Jarrar 5 QLD 55.5% C&S, successful
Moorari 18 SA 66.6% C&S, successful
Pallano East 1 QLD 55.5% P&A
Namur 11 SA 66.6% C&S, successful
Wallis 1 QLD 55.5% C&S, successful
Namur 12 SA 66.6% C&S, successful
Wenda 1 QLD 55.5% P&A
Namur 13 SA 66.6% C&S, successful
Namur 14 SA 66.6% C&S, successful
Cooper Basin gas
Well name Basin/area Santos Well status
Anna North 1 QLD 60.06% C&S, successful Northern Australia gas
Barrolka 18 QLD 60.06% Drilling Well name Basin/area Santos Well status
Bayu Undan
Bolah 3 QLD 60.06% C&S, successful Bonaparte 11.49% C&C, successful
D10#*
Bolah 4 QLD 60.06% C&S, successful
Lane 1 QLD 60.06% C&S, successful
Queensland - GLNG gas
Lois 1 QLD 60.06% C&S, successful
Well name Basin/area Santos Well status
Tillamook 1* QLD 60.06% C&S, successful
AC21-42-1 Arcadia 30% C&S, successful
Moomba 228 SA 66.6% C&C, successful
AC21-43-1 Arcadia 30% C&S, successful
Moomba 229 SA 66.6% C&C, successful
AC21-47-1 Arcadia 30% C&S, successful
Moomba 230 SA 66.6% C&C, successful
Mount
Moomba 231 SA 66.6% C&C, successful Arcadia 30% C&S, successful
Kingsley 11
Moomba 232 SA 66.6% C&S, successful Mount
Arcadia 30% C&S, successful
Kingsley 24
Moomba 233 SA 66.6% P&A
Mount
Arcadia 30% C&S, successful
Moorari 17 SA 66.6% C&S, successful Kingsley 30
Sunnyholt
Arcadia 30% C&S, successful
15
Queensland - Eastern Queensland gas (EQ) Sunnyholt
Arcadia 30% C&S, successful
17
Well name Basin/area Santos Well status Sunnyholt
Arcadia 30% C&S, successful
Memooloo 2## Mahalo 30% C&C, successful 22
Sunnyholt
Sirius Road 1## Mahalo 30% C&C, successful Arcadia 30% C&S, successful
23
##
Sirius Road 2 Mahalo 30% C&C, successful Sunnyholt
Arcadia 30% C&S, successful
Struan 2 ##
Mahalo 30% C&C, successful 24
Sunnyholt
Struan 3## Mahalo 30% C&C, successful Arcadia 30% C&S, successful
26
Sunnyholt
Arcadia 30% C&S, successful
27
Papua New Guinea gas Sunnyholt
Arcadia 30% C&S, successful
28
Well name Basin/area Santos Well status
Sunnyholt
Muruk 2# Southern ** Drilling Arcadia 30% C&S, successful
29
Highlands
PNG Sunnyholt
Arcadia 30% C&S, successful
# Notoperated by Santos 30
## Initial
Operator Comet Ridge on behalf of Santos Sunnyholt
* Spud in Q3, completed in Q4 Arcadia 30% C&S, successful
31
** Muruk-2 is being drilled in PDL 9. Santos will have an interest in any
Muruk hydrocarbons located in PDL 9 and is funding a share of the Sunnyholt
Arcadia 30% C&S, successful
appraisal well. 32
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 13 of 4
Sunnyholt RM06-46-1 Roma 30% C&S, successful
Arcadia 30% C&S, successful
33 RM06-47-1 Roma 30% C&S, successful
Sunnyholt RM06-48-1 Roma 30% C&S, successful
Arcadia 30% C&S, successful
34
RM06-49-1 Roma 30% C&S, successful
Sunnyholt
Arcadia 30% C&S, successful RM06-50-1 Roma 30% C&S, successful
35
RM06-51-1 Roma 30% C&S, successful
Sunnyholt
Arcadia 30% C&C, successful RM49-15-1 Roma 30% C&C, successful
36
Sunnyholt RM49-22-1 Roma 30% C&C, successful
Arcadia 30% C&S, successful
37 RM49-22-2 Roma 30% C&C, successful
Sunnyholt RM49-34-2 Roma 30% C&C, successful
Arcadia 30% C&S, successful
38 RM49-75-1 Roma 30% C&C, successful
Sunnyholt RM49-75-2 Roma 30% C&C, successful
Arcadia 30% C&S, successful
39
RM49-80-1 Roma 30% C&S, successful
Sunnyholt
Arcadia 30% C&S, successful RM49-81-1 Roma 30% C&C, successful
40
Sunnyholt RM49-92-1 Roma 30% C&C, successful
Arcadia 30% C&S, successful
41 RM50-49-1 Roma 30% C&C, successful
Sunnyholt RM50-50-1 Roma 30% C&C, successful
Arcadia 30% C&S, successful
42 RM50-54-1 Roma 30% C&S, successful
Sunnyholt RM50-57-1 Roma 30% C&S, successful
Arcadia 30% C&S, successful
43
RM50-60-1 Roma 30% C&C, successful
Sunnyholt
Arcadia 30% C&S, successful RM50-64-1 Roma 30% C&S, successful
44
Sunnyholt RM50-65-1 Roma 30% C&S, successful
Arcadia 30% C&S, successful RM50-66-1 Roma 30% C&S, successful
45
Sunnyholt RM50-67-1 Roma 30% C&S, successful
Arcadia 30% C&S, successful
46 RM50-68-1 Roma 30% C&S, successful
Sunnyholt RM50-69-1 Roma 30% C&S, successful
Arcadia 30% C&S, successful
47
RM50-70-1 Roma 30% C&S, successful
Sunnyholt
Arcadia 30% C&S, successful RM50-71-1 Roma 30% C&S, successful
48
RM50-75-1 Roma 30% C&S, successful
Fairview 212 Fairview 23.85% C&S, successful
RM50-76-1 Roma 30% C&S, successful
FV06-46-3 Fairview 23.85% C&S, successful RM50-77-1 Roma 30% C&S, successful
FV06-47-1 Fairview 23.85% C&S, successful RM50-81-1 Roma 30% C&C, successful
FV08-01-1 Fairview 23.85% C&S, successful Wyena 4 Roma 30% C&S, successful
Wyena 5 Roma 30% C&S, successful
FV08-11-1 Fairview 23.85% C&S, successful
Collingwood Scotia 30% C&S, successful
FV08-18-1 Fairview 23.85% C&S, successful
7
FV11-79-21 Fairview 23.85% C&S, successful Scotia 59A Scotia 30% C&C, successful
FV11-87-1A Fairview 23.85% C&S, successful Woodroyd Scotia 30% C&C, successful
FV11-92-1 Fairview 23.85% C&S, successful 3A
FV12-52-1 Fairview 23.85% C&S, successful
FV12-54-1 Fairview 23.85% C&S, successful
Queensland - Eastern Queensland gas (EQ)
FV12-57-21 Fairview 23.85% C&S, successful
FV16-26-2 Fairview 23.85% C&S, successful Well name Basin/area Santos Well status
FV16-51-1 Fairview 23.85% C&S, successful # C&S,
Combabula 90 Combabula 7.28%
FV16-55-1 Fairview 23.85% C&S, successful successful
FV16-56-1 Fairview 23.85% C&S, successful C&S,
Combabula 388# Combabula 7.28%
successful
FV16-57-1 Fairview 23.85% C&S, successful
C&S,
FV16-58-1 Fairview 23.85% C&S, successful Combabula 433# Combabula 7.28%
successful
FV16-59-1 Fairview 23.85% C&S, successful C&S,
Pine Hills 154# Combabula 7.28%
FV18-48-1 Fairview 23.85% C&C, successful successful
Moonah Fairview 23.85% C&S, successful C&S,
Pine Hills 175# Combabula 7.28%
East 5 successful
RM06-40-1 Roma 30% C&S, successful C&S,
Pine Hills 206# Combabula 7.28%
RM06-41-1 Roma 30% C&S, successful successful
RM06-42-1 Roma 30% C&S, successful C&S,
Pine Hills 354# Combabula 7.28%
RM06-43-1 Roma 30% C&S, successful successful
RM06-44-1 Roma 30% C&S, successful C&S,
Pine Hills 377# Combabula 7.28%
successful
RM06-45-1 Roma 30% C&S, successful
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 14 of 4
C&S, Reedy Creek Combabula 7.28% C&S,
Pine Hills 380# Combabula 7.28% South 63# successful
successful
Reedy Creek Combabula 7.28% C&S,
C&S,
Reedy Creek 13# Combabula 7.28% South 64# successful
successful
Reedy Creek Combabula 7.28% C&S,
C&S, South 65# successful
Reedy Creek 22# Combabula 7.28%
successful Reedy Creek Combabula 7.28% C&S,
# C&S, South 66# successful
Reedy Creek 179 Combabula 7.28% Reedy Creek Combabula 7.28% C&S,
successful
Reedy Creek 205 #
C&S, South 67# successful
Combabula 7.28% Reedy Creek Combabula 7.28% C&S,
successful
#
South 68# successful
Reedy Creek 241 C&S, Reedy Creek Combabula 7.28% C&S,
Combabula 7.28%
successful South 75# successful
Reedy Creek 242# C&S, Reedy Creek Combabula 7.28% C&S,
Combabula 7.28%
successful South 76# successful
Reedy Creek 271# C&S, Reedy Creek Combabula 7.28% C&S,
Combabula 7.28% South 77# successful
successful
Reedy Creek Combabula 7.28% C&S,
Reedy Creek 273# C&S, South 78# successful
Combabula 7.28%
successful Reedy Creek Combabula 7.28% C&S,
Reedy Creek 219# C&S, South 79# successful
Combabula 7.28%
successful Reedy Creek Combabula 7.28% C&S,
Reedy Creek C&S, South 80# successful
Combabula 7.28% Reedy Creek Combabula 7.28% C&S,
South 6# successful
South 81# successful
Reedy Creek C&S,
Combabula 7.28% Reedy Creek Combabula 7.28% C&S,
South 7# successful
South 82# successful
Reedy Creek C&S, Reedy Creek Combabula 7.28% C&S,
Combabula 7.28%
South 8# successful South 83# successful
Reedy Creek C&S, Reedy Creek Combabula 7.28% C&S,
Combabula 7.28% South 84# successful
South 25# successful
Reedy Creek C&S, Reedy Creek Combabula 7.28% C&S,
Combabula 7.28% South 85# successful
South 26# successful
Reedy Creek Combabula 7.28% C&S,
Reedy Creek C&S, South 87# successful
Combabula 7.28%
South 27# successful Reedy Creek Combabula 7.28% C&S,
Reedy Creek C&S, South 91# successful
Combabula 7.28%
South 28# successful Reedy Creek Combabula 7.28% C&S,
Reedy Creek C&S, South 92# successful
Combabula 7.28% Reedy Creek Combabula 7.28% C&S,
South 40# successful
South 93# successful
Reedy Creek C&S, Reedy Creek Combabula 7.28% C&S,
Combabula 7.28%
South 41# successful South 98# successful
Reedy Creek C&S, Reedy Creek Combabula 7.28% C&S,
Combabula 7.28%
South 42# successful South 104# successful
Reedy Creek C&S, Reedy Creek Combabula 7.28% C&S,
Combabula 7.28% South 177# successful
South 43# successful
Durham Ranch Spring Gully 4% Drilling
Reedy Creek C&S,
Combabula 7.28% 894#
South 45# successful
Reedy Creek Combabula 7.28% C&S,
South 46# successful
Reedy Creek Combabula 7.28% C&S,
Western Australia gas
South 47# successful Well name Basin/area Santos Well status
Reedy Creek Combabula 7.28% C&S,
VGB 15H* Carnarvon 52.5% C&C, successful
South 57# successful
Reedy Creek Combabula 7.28% C&S, VGB 15HL1 Carnarvon 52.5% C&C, successful
South 60# successful # Not operated by Santos
Reedy Creek Combabula 7.28% C&S, * Spud in Q3, completed in Q4
South 61# successful
Reedy Creek Combabula 7.28% C&S,
South 62# successful
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 15 of 4
Abbreviations and conversion factors
Abbreviations Conversion factors
C&C cased and completed Sales gas and ethane, 1 PJ 171.937 boe x 10
C&S cased and suspended Crude oil, 1 barrel 1 boe
gas coal seam gas Condensate, 1 barrel 0.935 boe
DES delivered ex ship LPG, 1 tonne 8.458 boe
FPSO floating production, storage and offloading LNG, 1 PJ 18,040 tonnes
GJ Gigajoules LNG, 1 tonne 52.54 mmBtu
kbbls thousand barrels
kt thousand tonnes
LNG liquefied natural gas
LPG liquefied petroleum gas
m Million
mmbbl million barrels
mmboe million barrels of oil equivalent
mmBtu million British thermal units
mmscf million standard cubic feet
mt million tonnes
mtpa million tonnes per annum
NFE near-field exploration
P&A plugged and abandoned
pa per annum
PJ petajoules
PSC production sharing contract
t tonnes
TJ terajoules
Disclaimer
This report contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the
expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or
trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, geotechnical factors, drilling and
production results, gas commercialisation, development progress, operating results, engineering estimates, reserve estimates, loss of market,
industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial markets conditions
in various countries, approvals and cost estimates.
All references to dollars, cents or $ in this document are to United States currency, unless otherwise stated.
Santos Ltd l Fourth Quarter Activities Report l 24 January 2019 Page 16 of 4
