Santos Limited · ASX:STO
Santos — International Petroleum Technology Conference (IPTC) 2012
12 slides from Santos's conference presentation, Feb 8, 2012
Slide 1: Unconventional Resources Presentation
Santos Ltd ABN 80 007 550 923 Ground Floor, Santos Centre 60 Flinders Street Adelaide South Australia 5000 GPO Box 2455 Adelaide South Australia 5001 Direct: + 61 8 8116 5000 Facsimile: + 61 8 8116 6723 For personal use only TO: Company Announcements Office ASX Limited FROM: Company Secretary DATE:
Slide 2: Introduction: unconventional gas panel discussion
For personal use only Thank you for the opportunity to take part in this panel discussion. This photo shows a well site in Santos’ area of coal bed methane or coal seam gas operations in the Arcadia Valley of Queensland, Australia. It illustrates the types of terrain seen in Eastern Australia from f
Slide 3: Disclaimer and Important Notice
Disclaimer and Important Notice This presentation 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 c
Slide 4: Unconventional hydrocarbons increasingly contribute to global production
For personal use only Unconventional hydrocarbons are increasingly contributing to the world’s oil and gas production. Three unconventional resource types contribute to global gas production: • Tight gas in low permeability sandstones or carbonates • Coal bed methane; and • Shale gas. Five years ago
Slide 5: North American shale gas and Australian CBM development history
For personal use only North American shale gas and Australian CBM represent the two most significant unconventional resources discovered to date. Australian CBM and US shale gas currently supply 20‐30% of their domestic markets. Both resources had long periods of trials before the production code wa
Slide 6: Australian CBM basins in eastern Australia
For personal use only In Australia, the potential for CBM production is well established in a series of adjacent basins, 2,000 km in length, inland from the east coast. The Permian Bowen and Gunnedah basins and the Jurassic Surat Basin all contain areas where flow rates exceed d 1 mmcf/d, f/d compar
Slide 7: Cooper Basin outlook: conventional, tight and shale gas
For personal use only The outlook for the Cooper Basin is excellent thanks to infill drilling of conventional fields, tight gas and shale gas. Significant thicknesses of gas saturated rocks are present where these reservoirs can be exploited, and the existence of local gas production and Santos’ Moo
Slide 8: Initial exploration phase: core holes and analysis
For personal use only The initial exploration phase comprises drilling core holes to collect reservoir information for evaluation purposes. And unlike conventional plays, this often requires 10’s of core holes. Within a typical core hole anywhere up to 500+ m of continuous core is cut and retrieved
Slide 9: Identifying sweet spots in unconventional plays
For personal use only Sweet spots usually occur in unconventional plays. These are areas where the permeability and, possibly, gas content or reservoir thickness are enhanced relative to other areas in the play fairway. The causes are typically: • Geomechanical for permeability • Hydrodynamic factor
Slide 10: Pilot programs and well design trials
For personal use only Once a high graded location has been identified, an initial pilot program will be drilled to demonstrate hydrocarbon flow and potential commercialisation. The pilot program is unique to the reservoir, ranging from a single multi stage fracc well in shale and tight sand to a 5 s
Slide 11: Cost reduction through repeated drilling
For personal use only The next step in cost reduction comes from execution of repeated drilling trials. Experience and efficiencies bring down drilling time and refinement of completion types results in increases in unit production. As an example, historical data for drilling of pilot wells in our R
Slide 12: Summary: requirements for unconventional success
For personal use only In summary, unconventionals will play an increasing role in both gas and oil production. Unconventional gas has a future outside North America ‐ CBM production is building and shale gas exploration has commenced in at least three continents. T succeed To d th the industry i d t
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