Santos Limited · ASX:STO
Santos — Shareholder Meeting (May 2005)
10 slides from Santos's shareholder meeting presentation, May 20, 2005
Slide 1: Managing Director's Address - Growth Outlook
MANAGING DIRECTOR’S ADDRESS ANNUAL GENERAL MEETING OF SANTOS LTD BY MR JOHN ELLICE-FLINT MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER GROWTH OUTLOOK 20 May 2005
Slide 2: Welcome
Welcome SLIDE 1: INTRODUCTION Thank you Chairman and good morning ladies and gentlemen. These are certainly changing times for Santos. Today | will expand on the Company's significant progress of the past year and provide you with an insight into the growth options ahead. After that, | look forward
Slide 3: Runs on the board
Runs on the board The pace of change within Santos accelerated during 2004, with progress on all fronts ~ including safety and environment, exploration, development, operations and commercialisation. SLIDE 3: SAFETY AND ENVIRONMENT A crucial factor in our forward strategy is that our expansion plans
Slide 4: 2004 Exploration - 44% Success Rate
SLIDE 5: 2004 EXPLORATION - 44% SUCCESS RATE Our approach is reaping rewards. Together with our commercialisation, portfolio management, optimisation and appraisal activities, our strategy enabled us to increase our reserves and more than replace our 2004 production. This continues an impressive ind
Slide 5: Increased Exploration for 2005
SLIDE 7: INCREASED EXPLORATION FOR 2005 Given the importance of exploration to Santos, | am pleased to announce today a further increase in this year’s exploration budget to $170 million for the drilling of 28 wildcat exploration wells. This is up from $153 million previously advised and is 35% high
Slide 6: Bayu-Undan production and LNG
In fact, production from the Bayu-Undan field was 22% above our expectations in 2004 and the development well results have been better than anticipated. SLIDE 10: BAYU-UNDAN LNG The second phase of the Bayu-Undan project is progressing towards its scheduled start up of Liquefied Natural Gas or LNG p
Slide 7: Casino and Mutineer-Exeter development
Considerable progress has been made. Development drilling has just commenced and the project is now over 40% complete. Here you can see the subsea wellheads being loaded onto the rig. Casino remains on track to start production in the first quarter 2006. SLIDE 14: MUTINEER-EXETER A Floating Producti
Slide 8: Maleo
SLIDE 16: MALEO The Maleo gas field is located near Oyong and is to be developed to satisfy a contract for the sale of the entire gas reserves of the field for electricity generation. Sanction of the Maleo development is awaiting finalisation of the last contract details. The schematic you see here
Slide 9: Base business operations in Australia
In southern Australia, we strategically refocussed our attention on the offshore Otway and Gippsiand Basins, where we made a series of acquisitions to increase our interests. These newly-acquired assets now have the potential to form production hubs linked to the largest energy market in Australia,
Slide 10: Conclusion
Conclusion SLIDE 20: GROWTH PROJECTS What does this mean for our shareholders? Firstly, we expect to meet our production projections of around 54 million barrels of oil equivalent during 2005 ~ compared with 47 million barrels in 2004 — with a further increase of at least 10% in 2006. lt means that