Santos Limited · ASX:STO

Santos — JP Morgan Australasian Conference 2009

28 slides from Santos's conference presentation, Oct 8, 2009

  1. Slide 1: JP Morgan Australasian Conference 2009 – Presentation Slides

    Media enquiries Investor enquiries Matthew Doman Andrew Nairn +61 8 8116 5260 / +61 (0) 421 888 858 +61 8 8116 5314 / +61 (0) 437 166 497 matthew.doman@santos.com andrew.nairn@santos.com 8 October 2009 The JP Morgan Australasian Conference 2009 – Presentation Slides Please find attached presentation

  2. Slide 2: Disclaimer & Important Notice

    Investor Presentation October 2009 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 reasonable, but they may be affec

  3. Slide 3: Securing our Energy Future

    Securing our Energy Future Natural Gas will play a vital role in meeting the energy requirements for Australia and the Asia Pacific region…  Natural gas can meet new base load power generation requirements in Eastern Australia: - Lowering the carbon intensity of power generation by up to 70% - Sign

  4. Slide 4: Natural Gas – Australia's strategic advantage

    Natural Gas – Australia’s strategic advantage On 2008 consumption levels, eastern Australia has over 400 years of possible CSG resources alone …  Australian domestic gas CSG demand: > 1.1 Tcf pa Resource  Eastern Australian gas 200+ Tcf Potential demand: 0.62 Tcf pa 250+ Tcf  Remaining EA Potenti

  5. Slide 5: The Santos Strategy

    The Santos Strategy Using quality assets, Santos will safely deliver: Base business  Eastern Australia: Margin growth and resource conversion  Indonesia: Steady business with incremental growth  WA & NT: Exploit asset position LNG growth  GLNG: The leading CSG to LNG project  PNG LNG: On track

  6. Slide 6: Profits impacted by lower oil prices

    Profits impacted by lower oil prices 2009 Half Year Result Change on 2008 Oil Price A$73.28 per bbl (39)% Production 26.6 mmboe (4)% Sales Revenue $1,024 million (26)% EBITDAX $647 million (37)% Net Profit After Tax $102 million (66)% Operating Cash Flow $499 million (20)% Interim Dividend 22 cents

  7. Slide 7: 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 in Oyong and Wor

  8. Slide 8: LNG is a key component of Santos' Growth Strategy

    LNG is a key component of Santos’ Growth Strategy Strategy Bonaparte LNG Components  2mtpa FLNG PNG LNG  Santos 40% with carry to FID  On track for FID 4Q09  6.3mtpa two trains Deliver the  Santos 13.7% Darwin LNG Base Business  Commenced production in 2006  3.25mtpa single train LNG Growth 

  9. Slide 9: GLNG: The Leading CSG to LNG Project

    GLNG: The Leading CSG to LNG Project Momentum building towards FID in first half of 2010  Freehold land for liquefaction plant   Pre FEED work completed   PETRONAS selected as partner   LNG marketing well underway   Reserves build on track   Downstream FEED entry   EIS lodged, public co

  10. Slide 10: GLNG: Downstream update

    GLNG: Downstream update  Curtis Island site - EIS application for 10mtpa capacity (3 trains)  Downstream FEED - Bechtel appointed - 2-train FEED 40% complete - Curtis Island geotechnical site survey work complete  Pipeline FEED - GHD appointed - FEED 50% complete  Marketing - Binding offtake agr

  11. Slide 11: PNG LNG on Track for 4Q 2009 FID

    PNG LNG, Darwin LNG and Bonaparte LNG 19 PNG LNG on Track for 4Q 2009 FID  Pre FEED work on two train  6.3mtpa plant  Marketing Representative Agreement   Coordinated Development and Operating Agreement   Gas Agreement   Front End Engineering Design Entry Decision   Project finance progre

  12. Slide 12: Darwin LNG & Timor/Bonaparte/Browse

    Darwin LNG & Timor/Bonaparte/Browse Multiple pathways to growth Darwin LNG Barossa  Santos 11.4% Evans Caldita Shoal Bayu-Undan  Base project continues to deliver with potential upside unfolding Darwin Indian Petrel Timor Bonaparte Ocean Tern  Santos has material contingent Ichthys gas resource t

  13. Slide 13: Burnside-1 – Great street address

    Burnside-1 – Great street address 121˚ 122˚ 123˚ 124˚ 125˚ Legend Montara Santos acreage Oil field Crux -13˚ Gas field Argus Territory of Asmore WA-274-P & Cartier Islands WA-410-P WA-274-P Poseidon WA-274-P Concerto Cornea Echuca Mimia Shoals Torosa Ichthys -14˚ Caswell WA-411-P WA-281-P Brecknock

  14. Slide 14: Santos' Leading CSG Acreage Position

    Santos’ Leading CSG Acreage Position Greater Fairview Denison Gladstone Queensland Bowen  7,300 km2 (gross)  6,500 km2 (gross) Basin  115 TJ/d production  Exploration stage  Active development & appraisal programme Greater Roma Greater Scotia  7,700 km2 (gross)  2,500 km2 (gross)  High quali

  15. Slide 15: Production Delivery

    Production Delivery Fairview production has reached 115TJ/d… Santos’ Operated CSG Sales Production Growth 180 160 Compressor Site 3 & Increased Water 140 Fairview-Wallumbilla Capacity Pipeline Tie-in & Operational 120 Compressor Site 2 Completed Compressor Expansion Tipperary Site 2 100 Acquisition

  16. Slide 16: Fairview Production

    Fairview Production Mcf/d Fairview 18X bbls/d Production from the First 10 Fairview Wells Gas Production (Mscf/d), Water Production (bwpd) 8000 8000 14,000 7000 7000 12,000 6000 6000 10,000 5000 5000 8,000 4000 4000 6,000 3000 3000 4,000 2000 2000 1000 1000 2,000 0 0 0 94 95 96 97 98 99 00 01 02 03

  17. Slide 17: Managing Coal Seam Gas Water

    Managing Coal Seam Gas Water Diversified water management strategy is being implemented  3 Pronged Strategy Irrigation - Irrigation - Injection Reverse Osmosis - Reverse Osmosis  Irrigation - 887,000 trees planted to date Cropping - Targeting 1.2m trees receiving 12.2 ML/day 31 Eastern Australia G

  18. Slide 18: Demand for Eastern Australia gas

    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: NEMMCO, Santos, company announcements …driven by g

  19. Slide 19: Enviable existing gas infrastructure

    Enviable existing gas infrastructure Mt Isa Townsville  Supply and demand centres are effectively Gladstone Fairview networked Ballera Roma  Further investment is Wallumbilla Brisbane Moomba needed to enhance deliverability from some emerging supply areas Gunnedah Sydney Adelaide Culcairn Canberra

  20. Slide 20: Leading position in Gunnedah Basin

    Leading position in Gunnedah Basin Basin master position in quality basin with >50 tcf prospective potential  ESG operated areas (STO 48%)1 Wilga Park Power Station - 9 coreholes drilled of 20 well PPL 3 Narrabri New programme PEL 434 PAL 2 South Wales PEL 238 - Stepping out exploration and Gunneda

  21. Slide 21: Western Australia Domestic Gas

    Western Australia Domestic Gas Santos portfolio is well placed to supply the WA domestic market  2008 gas and condensate Mutineer Fletcher production 5 mmboe Exeter  Established infrastructure Legendre  John Brookes ramp-up: 200PJ uncontracted 2P reserve Reindeer  Reindeer development underway J

  22. Slide 22: Reported & underlying profits

    Reported & underlying profits Reported NPAT: 1st half Underlying NPAT: 1st half $m 320 304 283 (161) 280 240 200 160 (20) 120 102 102 prices 80 & fx other 40 0 2008 2009 2008 2009 41 EBITDAX  Lower prices and Operating Gas lower value product Prices Mix Costs Purchases Other mix reduced price by $m

  23. Slide 23: Segment EBITDAX Summary

    Segment EBITDAX Summary Segment Half Year Half Year Change $m 2009 2008 % Eastern Australia 318 451 (29) WA&NT 285 474 (40) GLNG 8 38 (79) Asia Pacific 64 102 (37) Corporate and unallocated items (28) (33) 15 TOTAL EBITDAX 647 1,032 (37) Eastern Australia | Lower liquids prices and production volume

  24. Slide 24: Indonesia – Oyong & Wortel

    Reference slides 45 Indonesia – Oyong & Wortel  Oyong Phase 1 (oil) - First oil achieved in September Java Sea 2007 Oyong Maleo  Oyong Phase 2 (gas and oil) Sampang PSC - 60km pipeline to Grati Surabaya - Gas sales to PT Indonesia Power Madura Offshore PSC - Engineering and construction complete E

  25. Slide 25: Vietnam

    Vietnam  Prospective, lightly explored China Vietnam basins Burma Song Hong Laos Basin  Multiple, material play types 101-100/04 PSC  Oil and gas potential Thailand South China Sea  Rapidly growing markets Phu Khanh Cambodia Basin  Strong regulatory regime 123 PSC Nam Con Son Basin 12W PSC Lege

  26. Slide 26: Bay of Bengal – India / Bangladesh

    Bay of Bengal – India / Bangladesh  Material Gas targets India  Enormous, underexplored, prospective Bangladesh tertiary delta near rapidly emerging India markets Sangu  India - PSC’s signed March 2007 Burma Bay of Bengal - Processing of 2D seismic survey completed - 4000 km2 3D seismic survey ac

  27. Slide 27: 2009 Capital expenditure outlook

    2009 Capital expenditure outlook (A$ million) 2009 2008 Capital expenditure 1,600 1,500 Acquisitions 476 5 Disposal proceeds1 (304) (2,052) 1 (pre tax, reported to date for 2009) 51 2009 Second Half Sensitivities Sensitivity Change NPAT Impact A$m US dollar oil price US$1/bbl 8 Gas price 10 cent/GJ

  28. Slide 28: Contact Information

    Oil Price A$/bbl 1st half 2008 1st half 2009 180 160 140 Average: A$120.51 Current A$84.55 120 A$/bbl 100 80 Average: A$73.28 60 40 Jan 08 Jun 08 Jan 09 Jun 09 53 Contact Information Registered and head office Andrew Nairn Share Register Group Executive Investor Relations Adelaide Level 10, Santos C

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