Media enquiriesJames Murphy+61 (0) 478 333 974
ames.murphy@santos.com
Second Quarter Activities ReportFor period ending 30 June 2020
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SX: STO | ADR: SSLZY
Investor enquiries
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ndrew Nairn+61 8 8116 5314 / +61 (0) 437 166 497andrew.nairn@santos.com
Santos Limited ABN 80 007 550 923GPO Box 2455, Adelaide SA 5001T +61 8 8116 5000 F +61 8 8116 5131www.santos.com
23 July 2020
Santos Managing Director and Chief Executive Officer Kevin Gallagher said the first half of 2020 had delivered recordproduction volumes and strong free cash flow of US$431 million, despite significantly lower oil prices.“Our disciplined, low-cost operating model continues to drive strong performance across our diversified asset portfolioand completion of the ConocoPhillips acquisition in late-May further boosted our production and cash flows.”“The operating model allowed us to maintain activities key to sustaining strong operational performance across all of ourcore assets. As a result, we are realising lower costs from the initiatives announced in the first quarter and are targetinga free cash flow breakeven oil price of US$25 per barrel for 2020.”“By maintaining our sustaining activities, production levels from our core assets are expected to remain relatively steadyfor the next five or six years, allowing us to continue to progress our major capital projects while maintaining capitaldiscipline and flexibility in commitment timing.”“As COVID-19 and the lower oil price continue to challenge us, we have remained resilient and kept production going,meaning our revenues have continued to flow. Our balance sheet is strong and we remain well positioned to leverageour growth opportunities when business conditions improve,” Mr Gallagher said.
Comparative performance
Santos share Unit Q2 2020 Q1 2020 Change 2020 YTD 2019 YTD ChangeProduction mmboe 20.6 17.9 15% 38.5 37.0 4%Sales volume mmboe 24.6 22.3 10% 46.9 45.2 4%Ave. realised oil price $/bbl 30.78 63.80 -52% 47.83 72.11 -34%Sales revenue$million785 883 -11% 1,668 1,974 -16%Capital expenditure
$million186 186 0% 372 447 -17%
Capital expenditure including restoration expenditure and acquisition of exploration assets but excluding capitalised interest.
Record quarterly and half-year production? Second quarter production of 20.6 mmboe was a record for Santos and 15% higher than the prior quarter? The strong production result was driven by higher domestic gas production in Western Australia, continuedstrong onshore production and a higher equity interest in Bayu-Undan following completion of theConocoPhillips acquisition? Quarterly sales revenue of US$785 million was 11% lower than the prior quarter primarily due to lower
liquids prices partially offset by higher domestic gas and LNG sales revenues? Half-year production was up 4% to a record 38.5 mmboe. Santos’ disciplined operating model continues todrive strong onshore performance - first half Cooper Basin and Queensland equity gas production was up18% and 5%, respectively. Initial results from horizontal wells in the Cooper Basin are promising? Santos’ diversified portfolio of fixed-price domestic gas revenues cushioned the impact of lower oil prices.Half-year sales revenue was US$1.7 billion, 16% lower than the previous first half
Strong free cash flow and liquidity
? Strong operational and cost performance delivered US$431 million of free cash flow in the first half? Targeting 2020 free cash flow breakeven oil price of US$25 per barrel? Liquidity of over US$3 billion at the end of the quarter, comprising US$1.3 billion in cash and US$1.9 billion
in committed undrawn debt facilities? Approximately 60% of production volumes for the remainder of 2020 are either fixed-price domestic gas
contracts or oil hedged at an average floor price of US$38 per barrelGrowth project optionality maintained
? The Santos-operated Barossa, Dorado and Moomba CCS major growth projects continue to progress
toward investment-ready, subject to market conditions and relevant approvals? The NSW Minister for Planning referred the Narrabri gas project to the Independent Planning Commission
with a determination ex
Ap
ected in the third
| q |
uarter
Page 2 of 12Santos Ltd l Second Quarter Activities Report l 23 July 2020
Sales volumes(Santos share)
Product Unit Q22020Q12020Q22019 2020 YTD 2019 YTDLNG 000 t
920.5
851.6 714.6
1,772.11,482.6Domestic sales gas & ethane PJ
64.8
55.5 64.3
120.3
129.8
Crude oil 000 bbls2,769.82,958.5 2,666.25,728.35,563.9Condensate 000 bbls1,539.41,414.1 1,261.72,953.52,560.3LPG 000 t
50.4
44.5 77.8
94.9
94.7
Sales
Own product mmboe
20.1
17.2 17.9
37.3
35.3
Third-party mmboe
4.5
5.1 4.5
9.6
9.9
Total sales volume mmboe
24.6 22.3 22.4
46.9
45.2
Second quarter sales volumes were higher than the prior quarter primarily due to increased equity in Bayu-Undanproduction following completion of the acquisition of ConocoPhillips’ northern Australia assets on 28 May 2020 andhigher domestic gas volumes in Western Australia.
Sales revenues(Santos share)
Product Unit Q22020Q12020Q22019 2020 YTD 2019 YTDLNG $million
397 341
Domestic sales gas & ethane $million
209 285
Crude oil $million
189 211
Condensate $million
67 83
LPG $million
21 39
Sales
Own product $million
632 7121,2601,499Third-party $million
251 247
Total sales revenue $million
883 9591,6681,974Third-party purchase costs $million119 190 196 309 403
Second quarter sales revenues were lower than the prior quarter primarily due to lower average LNG and liquids prices,partially offset by higher domestic gas and LNG sales volumes.
Average realised prices
Product Unit Q2 2020 Q1 2020 Q2 2019 2020 YTD 2019 YTD
LNG price US$/mmBtu
8.27 8.88 9.09 8.57 9.97Domestic gas price US$/GJ
3.82 3.77 4.40 3.79 4.52Crude oil price US$/bbl
30.78 63.80 79.21 47.83 72.11Condensate price US$/bbl
22.72 47.05 65.39 34.37 63.02LPG price US$/t
358.31 465.79 505.92 408.74 499.12
Page 3 of 12Santos Ltd l Second Quarter Activities Report l 23 July 2020
Production by asset(Santos share)
Asset Unit Q22020Q12020Q22019 2020 YTD 2019 YTD
Western Australia mmboe
7.2 6.2 7.7 13.4 14.9Cooper Basin mmboe
4.1 4.4 3.9 8.5 7.7Queensland & NSW mmboe
3.3 3.3 3.2 6.6 6.3PNG mmboe
3.2 3.3 3.2 6.5 6.4Nthn Australia & Timor-Leste mmboe
2.6 0.9 0.6 3.5 1.6Total production mmboe
20.6 17.9 18.6 38.5 37.0
Production by product(Santos share)
Product Unit Q22020Q12020Q22019 2020 YTD 2019 YTDSales gas to LNG plant PJ
43.9
34.8 31.6
78.7
64.6
Domestic sales gas & ethane PJ
59.5
52.5 56.6
112.0
111.5
Crude oil 000 bbls1,189.61,561.1 2,071.22,750.74,118.5Condensate 000 bbls1,275.51,073.7 1,088.62,349.22,133.1LPG 000 t
51.4
41.4 36.6
92.8
71.9
Total production mmboe
20.6
17.9 18.6
38.5
37.0
Second quarter production was higher than the prior quarter primarily due increased equity in Bayu-Undan gasproduction following completion of the acquisition of ConocoPhillips’ northern Australia and Timor-Leste assets, andhigher domestic gas production in Western Australia, partially offset by lower oil volumes due to the Ningaloo VisionFPSO being off-station to commence a period of planned maintenance.A data worksheet containing unaudited quarterly sales, revenue, production and capital expenditure tables in Excelformat is available on Santos’ website.
2020 Guidance
Production guidance is updated to 83-88 mmboe and sales volume guidance to 101-107 mmboe. Guidance includesthe ConocoPhillips acquisition from the completion date of 28 May 2020, when Santos’ interest in Bayu-Undan andDarwin LNG increased to 68.4% (previously 11.5%).Upstream production cost guidance for the base business (excluding ConocoPhillips acquisition) is unchanged at $6.70-
7.10/boe, consistent with the cost reduction initiatives announced in March. Guidance including the ConocoPhillipsacquisition is $8.50-8.90/boe, which includes Santos’ higher equity interest in Bayu-Undan from the completion date.Bayu-Undan has a higher unit upstream production cost ($21.75/boe in 2019) compared to the balance of the Santosupstream portfolio.All guidance is shown in the table below.2020 Guidance itemPrevious guidance Updated guidance
Production (mmboe)81-89 mmboe 83-88 mmboeSales volumes (mmboe)101-109 mmboe 101-107 mmboeCapital expenditure – base ($m)~$750 million No changeCapital expenditure – major growth ($m)~$150 million No changeUpstream production costs (base business)
$6.70-7.10/boe No changeUpstream production costs (incl COP acquisition)
n/a 8.50-8.90/boe
Base business excluding ConocoPhillips acquisition but including all planned shutdown activity and PNG LNG earthquake recovery costs.
Santos portfolio total including ConocoPhillips acquisition (Bayu-Undan/Darwin LNG at 68.4% interest from 28 May 2020) and all planned shutdown activity and PNGLNG earthquake recovery costs.
Page 4 of 12Santos Ltd l Second Quarter Activities Report l 23 July 2020
2020 Half-year results
Santos will release its results for the half-year ended 30 June 2020 on Thursday 20 August 2020. The first-half report(incorporating Appendix 4D) and associated investor presentation will be available on Santos’ website atwww.santos.com. A webcast briefing including investor/analyst questions will also be available on Santos’ website from
11:00am AEST on 20 August 2020.Financial information included in this report is unaudited and subject to finalisation of the company’s accounting andaudit processes, and Board review. As such, actual results for the half-year ended 30 June 2020 may differ from theinformation given in this report.Santos announced on 21 July that it expects to recognise a non-cash impairment charge in the range ofUS$700-800 million before tax (US$490-560 million after tax) in the 2020 half-year results. The impairment charge isdue to revised oil price assumptions resulting from the effects of the COVID-19 pandemic on energy market demandfundamentals. There is no impact on any of Santos’ reserves. The impairment charge is a non-cash item with no impacton EBITDAX or cash flow, will be excluded from underlying earnings and is subject to finalisation of the half-yearaccounts, auditor processes and Board approval.
Western AustraliaSantos share Unit Q2 2020 Q1 2020 Q2 2019 2020 YTD 2019 YTD
Sales volumeSales gas PJ
36.1
27.7 34.4
63.8 67.0
Condensate 000 bbls
295.1
324.3 290.9
619.4 466.3
Crude oil 000 bbls
311.6
830.8 897.2
1,142.4 1,852.6Total sales volume mmboe
6.8
5.9 7.1
12.7 13.8
Total sales revenue $million
149 219274 417Production
Sales gas PJ
37.1
28.7 35.5
65.8
68.8
Condensate 000 bbls
373.5
321.0 421.2
694.5
773.1
Crude oil 000 bbls
543.2
913.6 1,208.9
1,456.82,396.0Total production mmboe
7.2
6.2 7.7
13.4
14.9
Capital expenditure $million
29 7952 122
Second quarter sales gas volumes increased 30% on the prior quarter due to operations resuming at a major gascustomer facility in mid-March and commencement in mid-June of a new 12-year domestic gas contract for an initialsupply of 120 TJ/day at favourable US$-denominated pricing. Condensate production increased in line with higher gasvolumes.
Second quarter oil volumes were lower than the first quarter due to the Ningaloo Vision FPSO (Van Gogh, Coniston andNovara fields) being off-station for the planned shipyard maintenance campaign. Due to COVID-19 restrictions in theshipyard, the FPSO is now expected back on station in the first quarter of 2021. First oil production from the phase twoinfill drilling project on the Van Gogh field is still expected in late-2021.
Work continues on the Dorado project targeting FEED-entry in the third quarter of 2020 and FID in 2021, subject tomarket conditions. A competitive phase of pre-FEED is being advanced with three FPSO contractors ahead of movinginto FEED, including the assessment of both purchase and lease options. Tendering for the wellhead platform is alsobeing progressed, together with preparation of the Offshore Project Proposal and Field Development Plan for the project.
Page 5 of 12Santos Ltd l Second Quarter Activities Report l 23 July 2020
Cooper Basin
Santos shareUnit Q2 2020 Q1 2020 Q2 2019 2020 YTD 2019 YTD
Sales volume
Sales gas and ethane
PJ
17.9
18.5 16.0
36.4
32.6
Condensate
000 bbls
395.1 607.7 582.0 1,002.8 1,156.8LPG
000 t
41.7 39.9 71.1 81.6 80.9Crude oil
Own product000 bbls1,123.1
714.4 972.5
1,837.51,523.6Third-party000 bbls1,332.21,410.5 792.92,742.72,180.7Total000 bbls2,455.32,124.9 1,765.44,580.23,704.3Total sales volumemmboe
6.3 6.2 5.7 12.5 11.1Total sales revenue$million185 255 289 440 534Production
Sales gas and ethanePJ
16.9
17.9 15.0
34.8
29.6
Condensate000 bbls
252.3
347.2 244.9
599.5
467.3
LPG000 t
37.3
37.2 30.3
74.5
59.1
Crude oil000 bbls
644.0
644.7 859.1
1,288.71,716.0Total productionmmboe
4.1
4.4 3.9
8.5
7.7
Capital expenditure$million73 70 71 143 130
Sales volumes include own product and third-party volumes.
Cooper Basin first half production was up 10% compared to the previous half-year and represented an annualised rateof 17 mmboe. Production was lower than the prior quarter, primarily driven by a period of planned maintenance.Throughput at Santos’ operated facilities at Moomba and Port Bonython remains strong, with the Port Bonython liquidsprocessing facility recording the highest rate on record following debottlenecking activities.
Gas sales volumes were slightly lower than the prior quarter, reflecting the impact of COVID-19 on east coast customerdemand.
In the first half of 2020, a total of 53 wells were successfully rig released, including 22 development wells, 24 appraisalwells and seven exploration wells. Three of the wells drilled in the first half were horizontal wells (Durham Downs North8, Teringie 5 and Merupa 3) with lateral lengths up to 1,513 metres. Initial results from the horizontal wells are promisingwith initial production rate increases of 3-5 times compared to the relevant offset vertical wells.
Twenty wells were spudded in the second quarter, including 11 development wells, seven appraisal wells and twoexploration wells.
Engineering studies are rapidly progressing for the 1.7 mtpa Moomba carbon capture and storage (CCS) project. TheCooper Basin is uniquely placed for CCS given Santos’ long experience with gas injection combined with depletedreservoirs with proven rock seal. Santos is targeting to have the CCS project FID-ready by the end of 2020.
Santos has also commenced a concept study on a hydrogen future for the Cooper Basin. The concept study builds onthe Moomba CCS project as CCS is the fastest and most efficient route to a hydrogen economy, using less water, de-carbonising natural gas at its source and reducing scope 3 emissions.
Page 6 of 12Santos Ltd l Second Quarter Activities Report l 23 July 2020
Queensland & NSW
Santos share Unit Q2 2020 Q1 2020 Q2 2019 2020 YTD 2019 YTDSales volumeGLNG Joint VentureLNG 000 t
425.5 481.0 377.5 906.5 788.5Domestic contracts PJ
2.7
2.4 4.7
5.1
9.3
Eastern Qld (non-GLNG)
PJ
5.0
5.4 4.6
10.4
9.5
Total sales volume
mmboe
5.3 5.9 5.1 11.2 10.6Total sales revenue
$million236 266 227 502 516Production
GLNG Joint Venture
Sales gas to LNG PJ
13.7
13.1 12.5
26.8
23.5
Domestic contracts PJ
0.6
0.7 0.5
1.3
1.8
Eastern Qld (non-GLNG)
PJ
4.8
5.0 5.4
9.8
10.9
NSW PJ
0.2
0.2 0.2
0.4
0.4
Total production
mmboe
3.3 3.3 3.2 6.6 6.3Capital expenditure $million51 42 76 93 133
Combabula, Scotia (Santos legacy domestic volumes), Spring Gully and Denison.
Total sales volume, sales revenue and production include sales gas from NSW assets.
GLNG operational data (gross) Unit Q2 2020 Q1 2020 Q2 2019 2020 YTD 2019 YTDSales gas to domestic market PJ17 14 22 31 40LNG produced
000 t1,368 1,576 1,270 2,944 2,577Sales gas to LNG plant
GLNG equity gas PJ48 44 40 92 78Santos portfolio gas PJ9 15 14 24 28Third-party PJ25 36 22 60 50Total sales gas to LNG plant PJ82 95 77 177 156LNG cargoes shipped24 27 21 51 44
Includes LNG produced from GLNG equity gas, Santos portfolio gas and third-party quantities.
Gross GLNG-operated upstream sales gas production increased to 642 TJ/day at the end of the quarter, supported bycontinued steady growth from Roma and Arcadia and relatively steady production from the Fairview and Scotia assets.Daily production from Fairview was steady at 383 TJ/day at the end of the quarter. Continued production growth fromRoma resulted in gross daily production increasing to 165 TJ/day at the end of the quarter, driven by new developmentareas of the field and sustained high production in legacy areas. Drilling is now complete in the Roma East project with387 of 424 wells online to date and the last well expected online in the third quarter.Production from the Arcadia field grew to 30 TJ/day by the end of the quarter, with the field ramping faster than expected.Drilling is now complete in the Arcadia Valley project with all 148 wells online. Daily production from the Scotia field wassteady at 69 TJ/day at the end of the quarter.LNG production of 1.4 million tonnes was lower than the prior quarter as customers exercised contractual flexibility oncargoes due to lower demand resulting from COVID-19. GLNG managed upstream equity gas production through acombination of injection into Roma storage and exercising contractual flexibility on third-party gas supplies. A one-monthplanned statutory maintenance shutdown of LNG train 2 commenced in July. Santos now expects GLNG LNG sales inthe range of 5.9-6.1 million tonnes in 2020 as a result of lower customer demand due to COVID-19.Seventy-seven wells were spudded and 109 connected across the GLNG acreage in the second quarter for a total of157 drilled and 197 connected in the first half of 2020. Santos’ share of production from the non-operated Combabulaand Spring Gully fields was 44 TJ/day, in line with the prior quarter.
Page 7 of 12Santos Ltd l Second Quarter Activities Report l 23 July 2020
The Narrabri Gas Project has been referred by the NSW Minister for Planning to the NSW Independent PlanningCommission. The public hearing process is currently underway with a determination expected during the third quarterof 2020.
PNGSantos share Unit Q2 2020 Q1 2020 Q2 2019 2020 YTD 2019 YTDSales volumePNG LNG LNG
000 t
265.2
287.8 284.0
553.0
549.7
Condensate 000 bbls
364.0
360.9 297.2
724.9
686.6
Crude oil 000 bbls
2.9
2.8 3.6
5.7
6.9
Total sales volume mmboe
2.9
3.1 3.0
6.0
5.9
Total sales revenue $million
149 150
Production
PNG LNG
Sales gas to LNG
PJ
17.3
17.1 16.5
34.4
33.5
Condensate 000 bbls
319.9
323.8 330.1
643.7
672.6
Crude oil 000 bbls
2.5
2.7 3.1
5.2
6.5
Total production mmboe
3.2
3.3 3.2
6.5
6.4
Capital expenditure $million12 14 13
Includes SE Gobe
PNG LNG operational data(gross)
Unit Q2 2020 Q1 2020 Q2 2019 2020 YTD 2019 YTDProductionLNG 000 t 2,181 2,163 2,097 4,344 4,256Sales gas to LNG plant PJ 129 128 124 257 251Condensate
000 bbls 2,361 2,394 2,428 4,755 4,967Sales gas (SE Gobe)
PJ 2 2 2 4 4LNG cargoes shipped 29 28 27 57 56
Measured at the Kutubu entry point.
Purchased by PNG LNG.
Strong LNG production was maintained in-line with the prior quarter with the PNG LNG plant operating at an annualisedrate of 8.8 mtpa during the second quarter. Scheduled maintenance was deferred until 2021 as a result of COVID-19impacts.
Major growth capital expenditure on the proposed PNG LNG expansion project has been deferred as previouslyannounced.
The Greater Juha 2D seismic survey was suspended due to COVID-19 with the contractor demobilised.
Page 8 of 12Santos Ltd l Second Quarter Activities Report l 23 July 2020
Northern Australia & Timor-LesteSantos shareUnit Q2 2020 Q1 2020 Q2 2019 2020 YTD 2019 YTDSales volume
Darwin LNG
LNG000 t
229.7
82.9 53.1
312.6
144.4
Bayu-Undan
Condensate000 bbls
485.7
121.8 77.1
607.5
237.3
LPG000 t
8.7
4.7 6.6
13.4
14.0
Total sales volumemmboe
2.8
0.9 0.6
3.7
1.7
Total sales revenue$million
43 33
Production
Darwin LNG
Sales gas to LNGPJ
12.9
4.6 2.7
17.5
7.7
Bayu-Undan
Condensate000 bbls
329.7
81.7 92.5
411.4
220.1
LPG000 t
14.2
4.2 6.3
18.4
12.8
Total productionmmboe
2.6
0.9 0.6
3.5
1.6
Capital expenditure$million
22 12
Darwin LNG / Bayu-Undanoperational data (gross)
Unit Q2 2020 Q1 2020 Q2 2019 2020 YTD 2019 YTDProductionLNG 000 t 536 856 620 1,392 1,560Sales gas to LNG plant PJ 33 52 38 85 94Condensate 000 bbls 838 980 1,652 1,818 3,181LPG 000 t 38 47 81 85 158LNG cargoes shipped 8 14 9 22 23
Santos completed the acquisition of ConocoPhillips’ northern Australia and Timor-Leste assets on 28 May 2020 for areduced purchase price of US$1.265 billion and increased contingent payment of US$200 million subject to FID on theBarossa project. At completion, the net settlement amount was US$655 million, comprising the revised firm purchaseprice less cash in the acquired business from the effective date of 1 January 2019 to completion with customaryadjustments. Santos’ interest in Bayu-Undan and Darwin LNG increased to 68.4%, and in Barossa to 62.5%, and Santosassumed operatorship of the assets.
Second quarter sales and production volumes were higher than the prior quarter reflecting Santos’ higher equity interestin Bayu-Undan from 28 May, partially offset by customers exercising contractual flexibility on LNG cargoes.
Santos has signed a binding agreement to sell a 25% interest in Darwin LNG and Bayu-Undan to SK E&S forUS$390 million and has also signed a letter of intent to sell a 12.5% interest in Barossa to JERA. Both transactions aresubject to FID on Barossa.
Since assuming Barossa operatorship, Santos has progressed value engineering work targeting reduced project cost,including assessment of both purchase and lease options for the FPSO.
Evaluation of a further phase of infill drilling in Bayu-Undan is also being advanced to optimise field recovery and extendfield life and Darwin LNG production ahead of backfill from the Barossa development.
Page 9 of 12Santos Ltd l Second Quarter Activities Report l 23 July 2020
Corporate, exploration and eliminations
Santos shareUnit Q2 2020 Q1 2020Q2 20192020 YTD 2019 YTD
Total sales volumemmboe
0.5
0.3 0.9
0.8
2.1
Total sales revenue$million
22 42
Capital expenditure$million
8 20
Sales volumes and revenues in the corporate segment primarily represent gas trading activities.
Capital expenditure
Total exploration, evaluation and development expenditure is summarised in the table below.
$millionQ2 2020 Q1 2020 Q2 2019 2020 YTD 2019 YTDCapital expenditure
Exploration
10 12
Evaluation
25 86
Development and other capex (inc restoration)
151 172
Capital expenditure excl capitalised interest
186 270
Capitalised interest
3 310 5Total capital expenditure
189 273382 452Exploration and evaluation expensed
Exploration
20 24Evaluation
3 -5 3Total current year expenditure15 10 1725 27Write-off of amounts capitalised in prior years- - -- -Total expensed15 10 1725 27
Includes acquisition of exploration assets
Capital expenditure in the second quarter comprised $168 million in the base business and $18 million for major growthprojects.
Oil price hedging
9.7 million barrels of oil are hedged for the remainder of 2020 at a weighted-average floor price of US$38 per barreland an average ceiling price of US$49 per barrel, using a combination of zero-cost collars and three-way optionstructures. For 3.1 million barrels, there is also the ability to re-participate at an oil price greater than US$77 per barreldue to their three-way option structure.Oil hedge net proceeds received during the first half were US$39 million before tax, which will be excluded fromunderlying earnings.Two million barrels of oil are hedged for 2021 using zero cost collars, with a floor price of US$40 per barrel and aceiling price of US$50 per barrel.
Seismic activity
There was no seismic acquisition activity during the second quarter.
Page 10 of 12Santos Ltd l Second Quarter Activities Report l 23 July 2020
Drilling summary
The tables below detail drilling and completion activity during the quarter.
Near-field exploration (NFE) / Appraisal wells
Cooper Basin oilWell name Area Santos Well statusCooroo 7 QLD 55.5% C&S, successfulCooroo NorthWest 5
QLD 55.5% C&S, successfulCooroo NorthWest 6
QLD 55.5% P&A
Cooper Basin gasWell name Area Santos Well statusMoon 4 QLD 60.06% C&S, successfulFavela 1 SA 66.6% C&S, successfulGidgealpaSouth1
SA 66.6% P&AHector SouthEast 1
SA 66.6% DrillingMoomba 253* SA 100% C&C, successfulNapowie 9 SA 66.6% DrillingPondrinie 18 SA 66.6% C&S, successful*Spud in Q1, completed in Q2
Development wells
Cooper Basin gasWell name Area Santos Well statusMoon 5 QLD 60.06% C&S, successfulBrolga 6 SA 66.6% C&S, successfulBrolga 7 SA 66.6% C&S, successfulMerupa 3 SA 66.6% C&S, successfulMoomba 242 SA 100% C&S, successfulMoomba 243 SA 100% C&S, successfulMoomba 244 SA 100% C&S, successfulMoomba 255* SA 100% C&S, successfulMoomba 256 SA 100% C&S, successfulPondrinie 19* SA 66.6% C&S, successfulPondrinie 20 SA 66.6% C&S, successfulToolachee 55 SA 66.6% C&S, successfulToolachee 56 SA 66.6% C&S, successful*Spud in Q1, completed in Q2
Cooper Basin oilWell name Area Santos Well statusCooroo NorthWest 3*
QLD 55.5% C&S, successful*Spud in Q1, completed in Q2
Queensland -GLNG gasWell name Area Santos Well statusFV08-08-1* Fairview 23.85% C&S, successfulFV08-13-2 Fairview 23.85% DrillingFV08-19-1 Fairview 23.85% C&S, successfulFV13-30-1 Fairview 23.85% C&S, successfulFV13-31-1 Fairview 23.85% C&S, successfulFV13-59-1 Fairview 23.85% C&S, successfulFV13-64-1 Fairview 23.85% C&S, successfulFV15-30-1 Fairview 23.85% C&C, successfulFV15-31-1 Fairview 23.85% C&C, successfulFV18-32-1 Fairview 23.85% C&S, successfulFV18-33-1 Fairview 23.85% C&S, successfulFV18-34-1 Fairview 23.85% C&C, successfulFV18-35-1 Fairview 23.85% C&C, successfulFV18-36-1 Fairview 23.85% C&S, successfulFV18-54-1 Fairview 23.85% C&S, successfulFV18-63-1 Fairview 23.85% C&S, successfulFV18-68-2* Fairview 23.85% C&C, successfulFV18-73-1 Fairview 23.85% C&S, successfulFV18-74-1 Fairview 23.85% C&S, successfulFV18-75-1 Fairview 23.85% C&S, successfulFV18-76-1 Fairview 23.85% C&S, successfulRM02-66-1 Roma 30% C&S, successfulRM07-108-1 Roma 30% C&S, successfulRM08-91-1 Roma 30% C&S, successfulRM08-102-1 Roma 30% C&S, successfulRM09-76-1 Roma 30% C&S, successfulRM28-17-1 Roma 30% C&S, successfulRM28-18-1 Roma 30% C&S, successfulRM28-19-1 Roma 30% C&S, successfulRM40-04-1 Roma 30% C&S, successfulRM40-05-1 Roma 30% C&S, successfulRM40-06-1 Roma 30% C&S, successfulRM40-07-1 Roma 30% C&S, successfulRM40-08-1 Roma 30% C&C, successfulRM40-09-1 Roma 30% C&C, successfulRM40-10-1 Roma 30% C&C, successfulRM40-14-1A Roma 30% C&S, successfulRM40-16-1 Roma 30% C&S, successfulRM40-17-1 Roma 30% C&S, successfulRM40-18-1 Roma 30% C&S, successfulRM40-19-1 Roma 30% C&S, successfulRM40-27-1 Roma 30% C&S, successful
Page 11 of 12Santos Ltd l Second Quarter Activities Report l 23 July 2020
Queensland - GLNG gas
Well name Area Santos Well statusRM40-28-1 Roma 30% C&S, successfulRM-40-29-1 Roma 30% C&S, successfulRM50-127-1* Roma 30% C&C, successfulRM50-128-1 Roma 30% C&C, successfulRM50-138-1 Roma 30% C&C, successfulRM50-139-1 Roma 30% C&C, successfulRM50-140-1 Roma 30% C&C, successfulRM50-141-1 Roma 30% C&C, successfulRM50-148-1 Roma 30% C&C, successfulRM50-149-1 Roma 30% C&C, successfulRM50-150-1 Roma 30% C&C, successfulRM50-151-1 Roma 30% C&C, successfulRM50-152-1 Roma 30% C&C, successfulRM50-153-1 Roma 30% C&C, successfulRM50-154-1 Roma 30% C&C, successfulRM68-83-1 Roma 30% C&S, successfulRM68-84-1 Roma 30% C&S, successfulRM68-95-1 Roma 30% C&S, successfulRM68-96-1 Roma 30% C&S, successfulRM68-102-1 Roma 30% C&S, successfulRM68-103-1 Roma 30% C&S, successfulRM68-104-1 Roma 30% C&S, successfulRM68-105-1 Roma 30% C&S, successfulRM68-106-1 Roma 30% DrillingRM90-08-1 Roma 30% C&S, successfulRM90-09-1 Roma 30% C&S, successfulRM90-19-1 Roma 30% C&S, successfulRM90-20-1 Roma 30% C&S, successfulRM90-21-1 Roma 30% C&S, successfulRM90-31-1 Roma 30% C&S, successfulRM90-32-1 Roma 30% C&S, successfulRM90-41-1 Roma 30% C&S, successfulRM90-42-1 Roma 30% C&S, successfulRM90-43-1 Roma 30% C&S, successfulRM90-53-1 Roma 30% C&S, successfulWyena 6 Roma 30% C&S, successfulWyena 7 Roma 30% C&S, successfulWyena 8 Roma 30% C&S, successful*Spud in Q1, completed in Q2
Queensland -Eastern Queensland gas (EQ)
Well name Area Santos Well statusReedy Creek 68
#
Combabula 7.28% C&S, successfulReedy Creek 70
#
Combabula 7.28% C&S, successfulReedy Creek 97
#
Combabula 7.28% C&S, successfulReedy Creek 98
#
Combabula 7.28% C&S, successfulReedy Creek 99
#
Combabula 7.28% C&S, successfulReedy Creek
#Combabula 7.28% C&S, successfulReedy Creek
#Combabula 7.28% C&S, successfulReedy Creek
#
Combabula 7.28% C&S, successfulReedy Creek
#
Combabula 7.28% C&S, successfulReedy Creek
#
Combabula 7.28% C&S, successfulReedy CreekSouth 17
#Combabula 7.28% C&S, successfulReedy CreekSouth 34
#Combabula 7.28% C&S, successfulReedy CreekSouth 36
#
Combabula 7.28% C&S, successfulDurham Ranch
#
*
Spring
Gully
4% C&S, successful
#
Not operated by Santos* Spud in Q1, completed in Q2
Page 12 of 12Santos Ltd l Second Quarter Activities Report l 23 July 2020
Abbreviations and conversion factorsAbbreviations Conversion factors
C&C cased and completedSales gas and ethane, 1 PJ 171.937 boe x 10?C&S cased and suspended
Crude oil, 1 barrel 1 boegas natural gasCondensate, 1 barrel 0.935 boeDES delivered ex-shipLPG, 1 tonne 8.458 boeFEED front-end engineering and designLNG, 1 PJ 18,040 tonnesFID final investment decisionLNG, 1 tonne 52.54 mmBtuFPSO floating production, storage and offloading
GJ gigajoules
kbbls thousand barrels
kt thousand tonnes
LNG liquefied natural gasLPG liquefied petroleum gas
m million
mmbbl million barrels
mmboe million barrels of oil equivalent
mmBtu million British thermal units
mmscf million standard cubic feet
mt million tonnes
mtpa million tonnes per annum
NFE near-field exploration
P&A plugged and abandoned
pa per annum
PJ petajoules
PSC production sharing contract
t tonnes
TJ terajoules
DisclaimerThis report contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that theexpectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results ortrends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, geotechnical factors, drilling andproduction results, gas commercialisation, development progress, operating results, engineering estimates, reserve estimates, loss of market,industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial markets conditionsin various countries, approvals and cost estimates.
All references to dollars, cents or $ in this document are to United States currency, unless otherwise stated. Totals in the tables may not add due torounding.
Free cash flow (operating cash flows less investing cash flows net of acquisitions and disposals and major growth capital expenditure, less leaseliability payments) is a non-IFRS measure that is presented to provide an understanding of the performance of Santos’ operations.
This ASX announcement was approved and authorised for release by Kevin Gallagher, Managing Director and Chief Executive Officer.