Santos Limited · ASX:STO
Santos — Investor Presentation (November 2006)
7 slides from Santos's investor presentation, Nov 21, 2006
Slide 1: Coal Seam Gas & Santos
Santos Limited Coal Seam Gas & Santos Rick Wilkinson Vice President, Gas Marketing and Commercialisation 21 November 2006 Summary The CSG Industry • CSG is a major gas resource • Eastern Australia gas market is increasingly integrated • Low barriers to CSG entry • Eastern Queensland has already esta
Slide 2: Coal Seam Gas - Reserves
Coal Seam Gas - Reserves CSG is a major gas resource Bowen/Surat Others 3793 3793 (24.5%) (24.5%) 867 867 (6.5%) (6.5%) • A quarter of Eastern Australia’s Otway CS 2P gas reserves are CSG G 1635 1635 (10.6%) (10.6%) • This was achieved in ~ 7 years Cooper/ CSG Others Eromanga 105 105 (0.6%) (0.6%) •
Slide 3: Barriers to Entry
Barriers to Entry There are low barriers to entry for CSG • Large acreage potential • Close to markets • Established infrastructure −Wallumbilla hub −Pipeline infrastructure • Customers facilitate entry of new players −20 direct buyers in Queensland source form 18 fields • More than 20 start up and
Slide 4: CSG Business Development Maturation
CSG Business Development CSG businesses and assets move from ‘start up’ up’ to ‘maturity’ maturity’ during their life cycle… cycle… Illustrative Start up Transition Maturity Sydney Gas CS Energy Origin Sentient Santos Maturation Arrow Eastern Star Gas Molopo QGC Helm Energy AGL Sunshine Gas Anglo Co
Slide 5: Santos – Scotia Experience
Santos – Scotia Experience Scotia was Santos’ Santos’ first CSG SCOTIA PRODUCTION HISTORY asset development 40 4000 35 3500 • 1996 – CSG exploration 30 3000 commences 25 2500 bbl/d TJ/d 20 2000 • 2000 – Contract signed CS Energy 15 1500 • 2002 – Production start-up May 10 1000 5 500 • Currently 27 T
Slide 6: Santos – Leveraging technical expertise
Santos - Environmental Initiative • Fairview water injection • Up to 8,000 bbl/d • Only CSG water injection in Australia 11. Santos – Leveraging technical expertise Santos was able to build on the start up base production… production…. 45% raw gas 67% sales gas increase post Fairview Production Hist
Slide 7: Santos – Fairview next phase
Santos – Fairview next phase Plans are advanced to complete the next phase… phase… • Increase capacity to 70 TJ/d - Additional compressor site expansion to be commissioned - Plant capacity to 70 TJ/d - New pipeline connecting the field to Wallumbilla gas hub • Implemented continuous drilling program