Santos Limited · ASX:STO
Santos — Investor Day (November 2011)
43 slides from Santos's investor day presentation, Nov 10, 2011
Slide 1: GLNG
For personal use only GLNG plant site image, Curtis Island, Australia GLNG Peter Cleary VP Strategy & Corporate Development Chair of GLNG Operating Committee 63
Slide 2: Strong progress since FID
Strong progress since FID For personal use only First LNG expected in 2015 on schedule from US$16 billion two-train project World-class contractors executing with Strong team experienced project partnership team 383 wells drilled, 520 landholder agreements Upstream Fairview capacity of 1.3 TJ/day pe
Slide 3: Strong partnership and contractors
Strong partnership and contractors For personal use only Project partners have industry leading expertise providing end-to-end supply chain coverage Predominantly fixed-price EPC contracting strategy with world-class contractors 65
Slide 4: Experienced leadership team
Experienced leadership team For personal use only Experience: 25 years oil & gas experience. President GLNG Held position of Vice President Mark Macfarlane Eastern Australia for Santos Director GLNG Project GM GM External GM Human GM Marketing GM Upstream GM Business GM Legal Gas Supply Program Dire
Slide 5: Upstream
Upstream For personal use only 383 wells drilled to date, with 207 wells commissioned with capacity of 240 TJ/d Santos operates on grazing land, not cropping land − 520 agreements in place with 200 landowners Arcadia Area − 34,000 hectares of land owned to be used for key development activities and
Slide 6: Fairview wells capacity of 1.3 TJ/d
Fairview wells capacity of 200 TJ/d For personal use only Fairview wells averaging 1.3 TJ/day, up 30% on Jan 2010 12.00 8000 Water capacity for individual wells (bbl/d) Gas capacity for individual wells (TJ/d) 7000 10.00 Gas capacity for Water capacity for 6000 individual wells individual wells 8.00
Slide 7: Upstream development
Upstream development For personal use only Expect to drill ~135 wells in 2011 and ~170 wells in 2012; updating rig fleet in 2012 Six drilling rigs and six completion rigs in operation − Wet weather in first quarter of 2011 affected the drilling program Updating the rig fleet − Pad drilling − Reduced
Slide 8: Reserves and resources
Reserves and resources For personal use only GLNG has 9 Tcf of dedicated reserves and resources GLNG dedicated 2P+2C (PJ)2 As at 31 December 2010 NSAI estimates GLNG 10,000 ultimate 2P CSG reserves 8,000 maturation of 9,848 PJ from existing acreage1 6,000 In addition to CSG reserves, Santos to suppl
Slide 9: Producing, not reducing, water
Producing, not reducing, water For personal use only Queensland-first partnership between a CSG company and a private landholder Treated CSG water is an opportunity for landholders Mount Hope Station irrigation project − Santos providing up to 700 ML of treated water − Further projects to be rolled
Slide 10: Transparent water monitoring
Transparent water monitoring For personal use only Santos GLNG water portal includes detailed results from more than 100 water monitoring locations www.santoswaterportal.com.au 72
Slide 11: Gas transmission pipeline
Gas transmission pipeline For personal use only Production of line-pipe commenced, >100km already manufactured at 1.8 km/day Fixed price, lump-sum turnkey contract with Saipem − GLNG personnel embedded with Saipem in Farno, Italy − Expected to start laying pipeline 2012, on schedule − Two full pipe
Slide 12: Curtis Island clearing is complete
Curtis Island clearing is complete For personal use only Material offloading Camp accommodation facility 3 October 2011 74
Slide 13: LNG plant
LNG plant For personal use only Construction commenced on 7.8 mtpa two-train LNG plant and mainland logistics facilities Site clearing completed, bulk earthworks 35% complete Construction of accommodation facility commenced Engineering and procurement >33% complete Accommodation units Completed firs
Slide 14: Material offloading facility
Material offloading facility For personal use only Construction well advanced LNG plant site Pioneer ramp A D C B Barge berth Aggregate berth Ferry terminal Lo-Lo and Ro-Ro berth face 3 October 2011 A – J Holland’s office and laydown C – Batch plant 76 B – RO plant area D – Haul road
Slide 15: Questions
For personal use only Drilling rig, Cooper Basin, Australia Questions
Slide 16: Exploration and Subsurface
For personal use only Sangu and South Sangu fields, Bay of Bengal, Bangladesh Exploration and Subsurface Trevor Brown VP Exploration & Subsurface 78
Slide 17: Exploration and Subsurface
Exploration and Subsurface For personal use only Strong track 10-year track record of adding contingent resources and record of converting to reserves and production resource adds Competitive finding costs Significant Zola discoveries in Finucane South 2011 Conventional Material prospects in WA and
Slide 18: Strong track record of resource adds
Strong track record of resource adds For personal use only Exploration capex (US$m) Cumulative 2P+2C resource adds (mmboe) 300 1500 Finucane South, Exploration Capex US$ Zola, Gunnedah Number of wells Spar Deep, Gunnedah 250 Cum. Resource Adds Mmboe (RHS) 1250 Peluang, Burnside, Gunnedah 200 1000 Ne
Slide 19: Adding resource at low finding costs
Adding resource at low finding costs For personal use only 7 IHS Herold Asia Pacific 6 Santos Finding cost (US$/boe) 5 4 3 2 2006 –2010 Santos average finding costs US$0.83/boe 1 0 2006 2007 2008 2009 2010 Forecast 2011 Barossa, Chim Magnama, Netherby, Frigate Peluang, Burnside, Spar Deep, Finucane
Slide 20: Conventional - Bangladesh
Conventional - Bangladesh For personal use only Application of 3D seismic has identified multiple targets Sangu and South Sangu fields – Bay of Bengal, Bangladesh 82
Slide 21: Bangladesh - North East Sangu-1
Bangladesh - North East Sangu-1 For personal use only Proven petroleum system A’ Santos 100% and operator Water depth 10 metres 2 Km NE Sangu prospect mapped on 3D seismic A Rig secured and drilling planned for Q1 2012 Area of AVO anomaly Sangu 2 Sangu platform Sangu Sangu platform NE-1 A A’ Stacked
Slide 22: Carnarvon Basin – Winchester-1
Carnarvon Basin – Winchester-1 For personal use only Winchester is on trend with NWS Rankin fields Santos 75% and operator Water depth 80 metres Winchester-1 TD: 4,500 metres High condensate yield potential (>50bbls/mmscf) High resolution 3D seismic currently recording Rig secured and drilling plann
Slide 23: CSG regional study
CSG regional study For personal use only Santos’ 50-year onshore history provides unique knowledge for assessing unconventional basins Detailed regional mapping supports: Queensland Denison Targeted exploration approach and Trough Galilee Dawson River Basin Denison high grading portfolio Bowen Basin
Slide 24: Locating the CSG sweet spots
Locating the CSG sweet spots For personal use only Outcrop at a coal mine Find most prospective areas Characterise the reservoir in – thickness, gas cores/logs e.g. coal cleats content and structure 86
Slide 25: Shale, tight gas sands and deep coal
Shale, tight gas sands and deep coal For personal use only Cooper Basin prospects to be drilled in 2012 Nappamerri Trough Cooper Basin One dedicated horizontal shale drilling trial and follow-up fracture stimulation Three key tight gas exploration wells One deep coal exploration well Moomba 87
Slide 26: Shale gas reservoir studies
Shale gas reservoir studies For personal use only Hylogger core mineralogy TOC/dispersed organic matter: Core adsorbed/free gas storage 3mm 1m Bedding plane 4m intersection 3mm miniplug X-Ray tomogram Free gas storage in open pores of recrystallised clays 3mm miniplug Thin section of miniplug: Core
Slide 27: 2012 exploration program
2012 exploration program For personal use only Bangladesh NE Sangu-1 Fergana Basin Hatia 3D Phu Khanh Basin 2D seismic, 2 wells Magnama Block 123 seismic Nam Con Son Basin Chim Sao NW-1 Sumatra CSG wells Browse Basin Cooper Basin Crown-1 Tight gas, shale and deep coal program Surat, Bowen and Carnar
Slide 28: Technical and Engineering
For personal use only Ocean Sovereign, Bay of Bengal, Bangladesh Technical and Engineering Diana Hoff VP Technical & Engineering 90
Slide 29: Strong integrated functional capability with focus on the fundamentals
For personal use only Strong integrated functional capability with focus on the fundamentals Strong HSE focus Safe, timely and cost effective delivery of wells and projects 91
Slide 30: For personal use only
For personal use only Australia Onshore conventional Australia Vietnam Indonesia Bangladesh Offshore Australia Indonesia Onshore unconventional 92
Slide 31: Onshore Cooper Basin
For personal use only Onshore Cooper Basin Three new, state-of-the-art drilling rigs – Improved rig moving and drilling efficiency – Automated systems mean safer operations Cost reduction through multi-well pad development – On-site simultaneous operations – Optimised fracturing process – Reduced su
Slide 32: Onshore unconventional
For personal use only Onshore unconventional Two successful surface-to-inseam projects executed at Scotia – 50% improvement in time and cost between first and second program First in Australia and Asia: Time reduction through MZST technology Fracture stimulation “Mongoose” 100% 25% decrease (MZST) t
Slide 33: Offshore Asia Pacific well jack-up drilling campaign in progress
For personal use only Offshore Asia Pacific 3 well jack-up drilling campaign in progress in Bay of Bengal Established supply base in Offshore Asia Pacific Chittagong supply base Chittagong, Bangladesh Bangladesh Safe delivery of the 123-TH-1X Vietnam well in Vietnam with ‘best in class’ drilling per
Slide 34: Offshore Australia
For personal use only Offshore Australia Successfully completed four- well drilling and workover campaign in 2011 – Zero recordable incidents – Best historical performance Mutineer-Exeter workovers – Santos’ largest offshore testing program conducted Followed by a very active 2012 – 7-9 wells planne
Slide 35: Funding and Guidance
For personal use only Drilling rig, Cooper Basin, Australia Funding and Guidance Andrew Seaton Chief Financial Officer 97
Slide 36: Strong balance sheet
Strong balance sheet For personal use only Balance sheet capacity to: fund execution of business strategy minimise refinancing risk Debt maturity profile $6.2 billion of funding capacity A$ million A$ billion 1,800 7 1,600 6 1,400 5 1,200 1,000 4 800 3 600 2 400 1 200 0 0 2012 2014 2016 2018 2020 Ca
Slide 37: Capex program fully funded
Capex program fully funded For personal use only Base business and sanctioned project capex fully funded Existing $6.2 billion Capex committed undrawn excludes capitalised interest $million debt and cash at 4,000 $3.75 billion 30 September 2011 3,500 $3 billion Strong free cash flow 3,000 from base
Slide 38: Production guidance
Production guidance For personal use only 2011 guidance unchanged 2012 guidance of 51–55 mmboe mmboe Production 2012 production influenced by: 60 New projects: Chim Sao, Reindeer, 51-55 Halyard, Wortel 55 Higher Cooper production as 47-50 50 operations recover from flooding DLNG 35-day planned shutd
Slide 39: Wrap-up
For personal use only Wrap-up David Knox Managing Director & CEO 101
Slide 40: Questions
For personal use only Questions
Slide 41: 2011 Investor Seminar November 2011
For personal use only 2011 Investor Seminar 10 November 2011
Slide 42: 2012 exploration schedule
2012 exploration schedule For personal use only Santos Well Name Basin / Area Target Timing Interest % NE Sangu-1 Bay of Bengal Gas 100 Q1 2012 Indonesia CSG Sumatra Gas 60 Q1 2012 Central Asia 2 Wells Fergana Gas 70 Q2 2012 Beam-1 Carnarvon Gas 45 Q2 2012 Hoss-1 Carnarvon Oil 37.3 Q2 2012 Cooper ti
Slide 43: Contact information
Contact information For personal use only Head office Adelaide Andrew Nairn Ground Floor, Santos Centre Group Executive Investor Relations 60 Flinders Street Level 10, Santos Centre Adelaide, South Australia 5000 Direct: + 61 8 8116 5314 GPO Box 2455 Email: andrew.nairn@santos.com Adelaide, South Au