Santos Limited · ASX:STO
Santos — Investor Presentation (September 2008)
30 slides from Santos's investor presentation, Sep 8, 2008
Slide 1: ASX cover note: Investor Presentation September 2008
Santos Ltd A.B.N. 80 007 550 923 Ground Floor Santos Centre 60 Flinders Street Adelaide SA 5000 For personal use only GPO Box 2455 Adelaide SA 5001 Telephone: 08 8116 5000 Facsimile: 08 8116 5623 To: Company Announcements Office ASX Ltd From: Company Secretary Date: 8 September 2008 Subject: Investo
Slide 2: Delivering the Strategy / Disclaimer & Important Notice
For personal use only Delivering the Strategy September 2008 1 Disclaimer & 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 reasona
Slide 3: An Australian Company Providing Energy for Australia and Asia
An Australian Company Providing Energy for Australia and Asia Leading Australian based Exploration & Production company 2007 Production Commenced operations in 1954 59.1 mmboe For personal use only Market cap US$11 billion Crude oil 11.9 mmboe 1,800 employees Daily production LPG 2.0 mmboe -
Slide 4: Fundamental Shift Globally
Fundamental Shift Globally An Australian company providing energy for Asia For personal use only China Rest of World Growth in Primary Energy Demand (2000 – 07) Map Source: NASA India Rest Asia-Pacific Chart Source: BP 2007 Statistical Review 5 EA CSG: Globally Significant Play in an Access Constrai
Slide 5: The Santos Strategy
The Santos Strategy Using quality assets, Santos will safely deliver: Reliable base business in Australia Eastern Australia: price and volume growth For personal use only Cooper Oil: high-value scaleable exploitation opportunity WA: exploit asset position Significant growth in LNG GLNG: tran
Slide 6: Strategy Delivery in 2008
Strategy Delivery in 2008 Significant growth in LNG Sale of 40% interest in 3 GLNGTM to PETRONAS for For personal use only US$2.5 billion* Dual GLNGTM pre-FEED 3 commenced by Bechtel and Foster Wheeler Gas Agreement signed for 3 PNG LNG and project entry to FEED Receipt of US$2 billion from 3 PETRON
Slide 7: Sound Operating Performance
Sound Operating Performance 2008 Interim Result Change on 1H07 Production 27.6 mmboe (8%) For personal use only Sales Revenue $1,384 million 14% EBITDAX $1,032 million 6% Net Profit After Tax $304 million 58% Underlying Net Profit $289 million 30% Operating Cash Flow $699 million 30% Interim Dividen
Slide 8: Santos Beyond the 2P
Santos “Beyond the 2P” Near term oil development Significant oil prospects in Chim Sao/Dua in Vietnam PNG LNG – Expansion Multiple TCF gas prospects opportunities in Bay of Bengal PNG LNG – significant project underpinned by Near-term oil and gas development world class gas reserves For personal use
Slide 9: 2020 LNG Growth Aspiration
2020 LNG Growth Aspiration Kutei LNG Kutei Santos: 20-50% PNG LNG DLNG1 & Bayu-Undan Santos: 17.7% Santos 11.4% PLNG For personal use only DLNG2 DLNG GLNG Santos (Op): Petrel 95% Santos (Op): Tern 100% Santos (Op): 60% Santos (Op): Evans Shoal 40% Browse Santos: Barossa Caldita 40% GLNG Browse LNG S
Slide 10: Santos' Leading CSG Acreage Position
Santos’ Leading CSG Acreage Position Denison Greater Scotia Bowen Gladstone 0.8 million acres (net) Basin 0.5 million acres (net) Queensland Exploration stage 27 TJ/d production Same coals as Fairview Production since 2002 For personal use only Greater Roma 1.4 million acres (net) Hi
Slide 11: Burgeoning Australian CSG Industry
Burgeoning Australian CSG Industry Australian CSG production growth is following a similar pathway to the more established CSG resources in the USA Key metrics of the USA CSG industry Historic CSG Production include: (USA vs Australia) For personal use only - 20 producing basins 1800 - 40,000 prod
Slide 12: Recently Drilled Fairview Wells
Recently Drilled Fairview Wells Gas flows from recently drilled wells delivering world class rates Fairview Wells Max Rate > 1mmscf/d 16 14 For personal use only Wells drilled in last 6 months Production rate > 1mmscf/d 12 10 MMscf/d 8 6 4 2 0 21 Outstanding Drilling Performance Since Q3 2007 drilli
Slide 13: Gunnedah Basin
Gunnedah Basin 40TCF prospective resource… Santos has secured access to majority acreage positions (up to 21,000 km2 gross) New South Wales For personal use only Quality and material land position to Gunnedah allow building of major new business PEL 450 PEL PEL 1 PELA 12 Coonabarabran Quirindi
Slide 14: GLNG: Responds to Observable Trends
GLNGTM: Responds to Observable Trends GLNG TM World class unconventional reserves to fulfil… Growing Asia Pacific demand for LNG For personal use only From a secure supply source in Australia To capture rising price of scarce Curtis Is. energy Gladstone Proposed LNG Facility Gladstone 5 km F
Slide 15: PNG LNG Builds Towards FID
For personal use only PNG LNG & Darwin LNG 27 PNG LNG Builds Towards FID PNG LNG is moving toward final investment decision… Pre FEED work on two train 6.3 mtpa plant 9 Marketing Representative Agreement 9 Juha Hides & Angore Kutubu & Agogo Coordinated Development Gobe and Operating Agreement
Slide 16: Bayu-Undan and Darwin LNG
Bayu-Undan and Darwin LNG Base project continues to deliver with potential upside unfolding… De-bottlenecking/mini LNG expansion (studies underway) For personal use only Commercial tolls on any infrastructure used by 3rd party projects Santos’ uncontracted reserves to potentially play into new
Slide 17: Demand for Eastern Australia Gas
Demand for Eastern Australia Gas Demand will more than double within 10 years… 1800 1600 Planned For personal use only 1400 LNG Projects PJ/a 1200 1000 Carbon driven fuel switching 800 10 Year Historic Average 600 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: NEMMCO, Santos, company anno
Slide 18: Conventional Reserves Grow in Cooper as Prices Rise
Conventional Reserves Grow in Cooper as Prices Rise Expectation of higher gas prices combined with liquids… 17.4 TCF 2P OGIP Cooper gas reserves at 23.8 TCF 3P OGIP commercial not technical recovery limits Current 2P Recovery: 9.7 TCF For personal use only Sold: 8 TCF Material reserves growth ac
Slide 19: An Australian Company Providing Energy for Australia and Asia
An Australian Company Providing Energy for Australia and Asia Through: For personal use only Delivering the base Tapping our resource riches Being a great place to work …and do it all safely and sustainably to deliver a superior shareholder return 35 Reference Slides
Slide 20: 2008 Forward Exploration Schedule
2008 Forward Exploration Schedule Well Name Basin / Area Target Upside Resource Potential (mmboe) Santos Timing Comments Interest 0 – 50 50 - 100 100 - 500 % Bay of Bengal / Hatia 1 Bangladesh Gas 9 37.5 Q1 08 Gas Discovery Johnson 1 Barrow / Australia Oil 9 37.5 Q2 08 P&A For personal use only Chim
Slide 21: WA & Cooper Oil - Milestones
WA & Cooper Oil - Milestones Project 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Discovered FEED FID Startup Reindeer For personal use only 1997 Cooper Oil Jackson to Pre-FEED FEED FID Startup Moomba Pipeline Charon Well Exploration Pre-production Production Milestone 39 LNG Growth - Mile
Slide 22: Asian Growth - Milestones
Asian Growth – Milestones Project 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Discovered FEED FID Startup Oyong Ph2 2001 For personal use only FEED FID Startup Wortel Country Startup Pre-FEED FID Chim Sao Entry 2006 Dua Magnama, Hatia Wells 3D Seismic Country Bangladesh Entry 2007 2D Seis
Slide 23: PETRONAS: A Leader in LNG
PETRONAS: A Leader in LNG Number 3 globally in LNG and number 1 in Asia PETRONAS operates the PETRONAS Global Net Equity Production LNG complex, the world’s largest single 25 integrated LNG facility with a total For personal use only capacity of 23mtpa from 8 LNG trains. 20 Million tonnes of LNG p
Slide 24: GLNG JV - Upstream Assets
GLNG JV - Upstream Assets TM GLNG JV Acreage Fairview (PLs 90, 91, 92, 99, 100 & 232) • Santos operated with a 79.5% working interest decreasing to 68.5% after project payout For personal use only • Acquired by Santos in 2005 with an established production history of over 14 years Greater Fairview (
Slide 25: Vietnam - Nam Con Son Basin
Vietnam – Nam Con Son Basin Two oil discoveries, with follow-on opportunities Chim Sao/Dua (STO 37.5%) - Reservoir and facilities studies underway For personal use only South China - Project sanction in 2H 2008 Sea - Expression of interest prepared for FPSO supply Swan Nam Con Son Basin - Target f
Slide 26: Reindeer Development
Reindeer Development Fast-tracking discovery… Unmanned 6 slot platform in 65m of water 45% WI, Apache operator FID achieved 2Q08 Indian Reindeer (WA-209-P) For personal use only Ocean CAPEX $379m (net) Single 3 phase export pipeline First gas end 2010 Varanus Is. Dampier 400-600 bcf resour
Slide 27: Timor Bonaparte & Browse
Timor Bonaparte & Browse Timor Bonaparte Barossa A new LNG train in Darwin Evans Shoal Caldita For personal use only - 3-4 mtpa Bayu-Undan Floating LNG Darwin Indian - 1-2 mtpa Ocean Petrel Tern Browse Ichthys Ichthys North Q3 2008 drill Unitisation with existing LNG Western Northern plans a
Slide 28: Proposed Shaw River Power Station
Proposed Shaw River Power Station Proposal to build a 500MW power station in Victoria Natural gas will play an increasingly significant role in Australia’s power Proposed Shaw River Power Station Site generation mix For personal use only Mortlake Entry to power generation is consistent with Sant
Slide 29: Prices & Exchange Rates
Prices & Exchange Rates Half Year Half Year Change 2008 2007 % For personal use only Realised Oil Prices (USD/bbl) 113.08 68.19 +66 AUD/USD Exchange Rate 0.9383 0.8189 +15 (after hedging) Realised Oil Price (AUD/bbl) 120.51 83.27 +45 Gas Prices (AUD/GJ) 4.00 3.84 +4 55 2008 Second Half Sensitivities
Slide 30: Contact Information
Contact Information Registered and head office Andrew Nairn Share Register Group Executive Investor Relations Adelaide Level 10, Santos Centre Ground Floor, Santos Centre Direct: + 61 8 8116 5314 60 Flinders Street Facsimile: +61 8 8116 5131 For personal use only Adelaide, South Australia 5000 Email