Santos Limited · ASX:STO

Santos — Corporate Update (January 2013)

18 slides from Santos's corporate update, Jan 22, 2013

  1. Slide 1: Community Information Evening Narrabri

    Community Information Evening Narrabri January 22 2013

  2. Slide 2: What is coal seam gas?

    What is coal seam gas?  Coal seam gas is natural gas formed by the same processes that produce coal  Over millions of years, plant matter becomes peat and eventually is buried and hardens to become coal  Gas and water are also formed during this process as the coal is buried and heated  The gas

  3. Slide 3: Where is it found – Narrabri area

    Where is it found – Narrabri area Not to scale 3

  4. Slide 4: Upcoming Exploration

    Upcoming Exploration

  5. Slide 5: Six month work program - Narrabri area

    Six month work program - Narrabri area Jan PAL 2 1 workover 2013 PEL 238 1 well decommissioned Queensland PEL 6 Feb PAL 2 1 workover PEL Moree 2013 PAL 2 2 decommissions 427 New South PEL 1 1 workover Wales PEL 428 PEL 238 Mar PEL 238 1 corehole PPL 3 Narrabri PEL 2013 3 decommissions 434 PAL 2 1 wo

  6. Slide 6: Proposed upcoming work program

    Proposed upcoming work program  Decommissioning of wells (PA or plug and abandonment) – Bibblewindi 1 and 2 and workover of Bibblewindi 12 and 13  Exploration in the Narrabri area restarting: - Seismic surveys - in the Pilliga area - Core hole drilling - Bibblewindi 30, Dewhurst 8A - Pilot wells –

  7. Slide 7: The process of decommissioning (PA)

    The process of decommissioning (PA)  An abandonment includes filling the entire wellbore from bottom to surface with cement in cement ‘plug’ stages  All hole ‘plugs’ are left to set and tagged to confirm placement before the next one is pumped  Once a cement ‘plug’ top is inside casing, it is lef

  8. Slide 8: Seismic surveys

    Seismic surveys  To be carried out in and around the Pilliga  Specially equipped seismic vehicles drive through an area  Soundwave equipment records and images the geological formations below the surface  Where possible the surveys are conducted along roads or fence lines  Disturbance is minima

  9. Slide 9: Seismic surveys

    Seismic surveys A seismic survey underway 9

  10. Slide 10: Core holes

    Core holes  Core holes are drilled to investigate: - the depth of the coal seams - gas content - gas composition - how easily gas will flow  Drilling takes between two and six weeks  No water or gas is produced  The core hole is then sealed with cement  Core hole site rehabilitated Rehabilitate

  11. Slide 11: Core holes

    Core holes  A steel pipe (surface conductor) is inserted into the shallow sediments  It is cemented into place  Another steel pipe (surface casing) is then run inside the first pipe, through the shallow aquifers Cross section of surface conductor and surface  It is cemented in place to protect c

  12. Slide 12: Pilot or appraisal wells

    Pilot or appraisal wells  Pilot wells are drilled to: - Measure flow rates of gas and water - Analyse the composition of gas and water - Test the commercial viability of producing gas  Shallow aquifer monitoring bores (SAMBs) can be put in place to monitor groundwater before any pumping from coal

  13. Slide 13: Pilot or appraisal wells

    Pilot or appraisal wells Bibblewindi West 25 pilot well near Narrabri 13

  14. Slide 14: Pilot or appraisal wells

    Pilot or appraisal wells Pilot well at Kahlua near Gunnedah 14

  15. Slide 15: How we extract the gas

    How we extract the gas Wellhead Wellbore design, construction and operations are heavily regulated in Australia Water Gas  A steel pipe (surface conductor) is inserted into the surface layers and cemented in place to give stability Pilliga Sandstone  A second steel pipe (surface casing) is run ins

  16. Slide 16: Lateral drilling

    Lateral drilling  Exploration has shown the natural fractures in the coal in the Narrabri area make it suited to lateral drilling  Lateral drilling accesses more of the coal seam by drilling horizontally More than one coal seam targeted from one set of surface facilities 16

  17. Slide 17: Example MAR scheme

    7 Srtké ferry NARRABRI GAS PROJECT BOHENA CREEK INFILTRATION GALLERY AND MONITORING SCHEMATIC th We have the energy.

  18. Slide 18: Comments or questions?

    Comments or questions? Santos 1s We have the energy.

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