Slide 1: ASX cover note: Investor Presentation – June 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: 13 June 2008 Subject: Investor Pr
Slide 2: Disclaimer & Important Notice
For personal use only Santos Investor Presentation June 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 Asia
An Australian Company Providing Energy for Asia Leading Australian based Exploration & Production company 2007 Production Commenced operations in 1954 For personal use only 59.1 mmboe Market cap US$12.4 billion Crude oil 11.9 mmboe 1,774 employees Daily production LPG 2.0 mmboe - 625 mmcfd g
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 Portfolio
The Santos Portfolio Using quality assets in an extensive footprint, Santos will safely deliver: Reliable base business in Australia: Eastern Australia: price and volume growth Cooper Oil: high-value scaleable exploitation opportunity For personal use only WA: exploit asset position Significan
Slide 6: Track Record in Operational Delivery
Track Record in Operational Delivery Total Recordable Case Frequency Rate Number of wells drilled 300 20 250 16 200 For personal use only 12 150 8 100 4 50 0 0 2004 2005 2006 2007 2008 98 99 00 01 02 03 04 05 06 07 Total Conventional O&G Total CSG Wells Continuous improvement in sustainability score
Slide 7: Eastern Australia Gas
For personal use only Eastern Australia Gas 11 Demand for Eastern Australia Gas Demand will more than double within 10 years… 1800 1600 Planned 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: NEM
Slide 8: Increasing Value of Gas due to Carbon
Increasing Value of Gas due to Carbon Impact of carbon cost on electricity prices Implied gas price increase $120 +$5.00 For personal use only +$3.50 $80 $/MWh $40 $0 CCGT Dry Brown Coal Dry Black Coal Base Long Run Marginal Cost (LRMC) $50/t carbon Incremental LRMC Source: Santos, SKM 13 Energy Mar
Slide 9: Reserves and Production Growth as Prices Increase
Reserves and Production Growth as Prices Increase 6 5.7 Significant growth in Cooper: Production Natural gas production (tcf/yr) 5 US analogy: ~60% reserve growth 4 3.6 Conventional: 3+TCF in additional 3 recovery potential For personal use only 1.8 Unconventional: 7+TCF in 2 1.1 1.1 prospecti
Slide 10: 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% Santos: Barossa Caldita 40% Browse GLNG Browse LNG S
Slide 11: 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 12: 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 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: Partnership with PETRONAS
Partnership with PETRONAS PETRONAS a global top 3 LNG producer with more than Partner US$50 billion in annual revenue US$2.508 billion consisting of US$2.008 billion plus Amount US$500 million upon FID of GLNGTM Train 2 using JV gas For personal use only Participation 40% interest in Integrated Proj
Slide 16: Transaction Underpins Santos' CSG Value
Transaction Underpins Santos’ CSG Value Santos’ Coal Seam Gas Reserves and Resources PJ (as of end 2007) 2P 3P Contingent resource1 For personal use only YE 2007 total CSG reserves 1,573 4,511 10,492 Sold to PETRONAS 538 1,600 2,969 Remaining CSG reserves 1,035 2,911 7,523 1 Contingent resource is d
Slide 17: PNG LNG Builds Momentum
PNG LNG Builds Momentum PNG LNG is moving toward final investment decision… Pre FEED work on two train 6.3 mtpa plant 9 Marketing Representative For personal use only Agreement 9 Juha Hides & Angore Kutubu & Agogo Coordinated Development Gobe and Operating Agreement 9 Gas Agreement 9 Marine
Slide 18: Reference Slides: 2008 Forward Exploration Schedule
For personal use only Reference Slides 33 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
Slide 19: Eastern Australia Gas - Milestones
Eastern Australia Gas - Milestones Project 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 FEED FID Startup Fairview CSG For personal use only 115 TJ/Day Henry Discovered FEED FID Startup (VIC/P44 July 2005 Stage 2) Discovered FID Startup Kipper 1986 Patricia- FEED Startup Pre-FEED FID Baleen
Slide 20: LNG Growth - Milestones
LNG Growth - Milestones Project 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Pre-FEED FEED FID Gladstone Startup For personal use only LNG Hides Field Pre-FEED FEED FID Discovered PNG LNG 1987 Startup Discovered Startup DLNG 1 1995 (Bayu Undan) Ichthys North 1 Well Drilled Browse Pre-produ
Slide 21: Outlook for 2008
Outlook for 2008 Initial guidance maintained Production - Initial 2008 guidance maintained at 56-58mmboe For personal use only - Assuming GLNG sale is effective 31 Aug -0.5mmboe - Guidance including sale 55.5-57.5mmboe Costs - Initial production cost guidance maintained at $60 million more than
Slide 22: Indonesia – Oyong & Wortel
Indonesia – Oyong & Wortel Oyong Phase 1 (oil) - First oil achieved in September 2007 at ~8,000 bopd Oyong For personal use only Wortel Oyong Phase 2 (gas and oil) Surabaya - 60km pipeline to Grati - Gas sales to PT Indonesia Power - Engineering and construction in progress Grati - First gas Q3
Slide 23: Bay of Bengal – India / Bangladesh
Bay of Bengal – India / Bangladesh Material Gas targets India Enormous, underexplored, Bangladesh prospective tertiary delta near India For personal use only rapidly emerging markets Sangu India - PSC’s signed March 2007 Bay of Bengal Burma - 17,250 line km seismic survey completed – currently
Slide 24: Cooper Basin Oil
Cooper Basin Oil Future scale of program will be determined by economics … Cooper Basin Oil Forecast Results from low permeability 14,000 reservoirs disappointing 12,000 10,000 For personal use only Net (bopd) Success in deeper / higher 8,000 6,000 rate reservoirs 4,000 2,000 Optimising target
Slide 25: Timor Bonaparte/Browse: hot property
Timor Bonaparte/Browse: hot property Major parties enter and confirm acreage value … Sinopec 2Q 2008 CNOOC 3Q 2007 Total 3Q 2007 For personal use only Apache/Total 2Q 2008 Legend PETRONAS 3Q 2007 Santos acreage Reliance 3Q 2007 Other acreage Oil field Murphy 3Q 2007 Darwin Gas field ENI Renewing Oil
Slide 26: 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