First Quarter Activities Report
For period ending 31 March 2018
19 April 2018
Key highlights
Strong free cash flow generation
Santos is now reaping the benefits of its new low cost, high efficiency operating model, with forecast free cash
flow breakeven remaining at ~$36/bbl1 in 2018 and free cash flow generation strong.
During the quarter, Santos generated $246 million in free cash flow. Surplus cash is being applied to reduce net
debt and Santos is well ahead of plan to achieve its end-2019 net debt target of $2 billion.
First quarter production of 13.8 million barrels of oil equivalent (mmboe) was 1.2 mmboe lower than the prior
quarter due to planned maintenance at facilities in Moomba and in Queensland, and the temporary outage of
PNG LNG following major earthquake activity in February. Production at PNG LNG recommenced ahead of forecast
and Santos has revised 2018 production guidance to 55-58 mmboe.
As at 31 March 2018, Santos had cash and cash equivalents of $1.5 billion and total debt of $4 billion, resulting
in net debt of $2.5 billion.
Net debt has reduced by 8% since the start of 2018 and by 47% since the start of 2016.
Growth project updates
The Barossa Caldita Offshore Project Proposal was approved by NOPSEMA. A FEED decision is imminent. Barossa
Caldita is the lead candidate to underpin the long-life extension of Darwin LNG and would more than double
Santos’ current Northern Australian production.
In PNG, Santos along with the other PNG LNG parties has commenced discussions with both the PRL 3 (P’nyang)
and PRL 15 (Papua LNG) joint ventures to build alignment for the proposed construction of three additional LNG
trains at the PNG LNG site.
In Queensland, the Scotia CF1 project is in the final stages of commissioning, we commenced the 430-well Roma
East development and positive drilling results were announced at Mahalo.
Unsolicited, indicative, non-binding proposal from Harbour Energy
Indicative and non-binding US$4.98 per share (A$6.502 per share) cash acquisition proposal (Harbour Proposal)
to acquire 100% of Santos shares received from Harbour Energy, as previously announced on 3 April 2018.
Harbour Energy has commenced confirmatory due diligence as part of an engagement process to determine if a
proposal can be developed that is capable of being recommended by the Santos Board to shareholders.
No certainty that the Harbour Proposal will result in an offer for Santos capable of being recommended by the
Board for consideration by shareholders. Santos Directors reiterate that shareholders should take no action in
relation to the Harbour Proposal.
Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “Santos’ first quarter results highlight the
benefits of a diversified portfolio of natural gas assets underpinned by a disciplined operating model focused on cash
generation.”
“In the first quarter of 2018, we generated $246 million in free cash flow, reduced net debt by 8% to $2.5 billion and
maintained our 2018 forecast free cash flow breakeven at ~US$36/bbl, despite the significant increase in drilling activity
in Queensland and the Cooper Basin, and the temporary shutdown in PNG following major earthquake activity.”
“This clearly demonstrated the resilience of our diversified portfolio of core assets and we are now beginning to enjoy
the sustained benefits of our low cost, high efficiency operating model, with strong free cash flow generation further
strengthening our balance sheet and setting us up for future growth.”
1 Free cash flow breakeven is the average annual oil price in 2018 at which cash flows from operating activities (including hedging) equals cash flows from
investing activities. Excludes one-off restructuring costs and asset divestitures and acquisitions.
2 Based on an AUD/USD exchange rate of 0.7662 as referenced in the Harbour Proposal.
Media enquiries Investor enquiries Santos Limited ABN 80 007 550 923
Joanna Vaughan Andrew Nairn GPO Box 2455, Adelaide SA 5001
+61 (0) 419 111 779 +61 8 8116 5314 / +61 (0) 437 166 497 T +61 8 8116 5000 F +61 8 8116 5131
joanna.vaughan@santos.com andrew.nairn@santos.com www.santos.com
“As a result of our strong cash flows that enabled net debt to be reduced by a further 8% to $2.5 billion over the
quarter, Santos is now set up to reap the benefits of higher oil prices and continue to build value for our shareholders.
If current oil price levels continue throughout 2018 then we will achieve our end-2019 net debt target sometime in the
second half of 2018, more than a year ahead of plan.”
“In late February, we were deeply saddened by the loss of life and personal injury suffered by communities in Papua
New Guinea as a result of the severe earthquake in the region. Our PNG LNG expertise and resources were deployed to
assist the humanitarian relief effort and Santos donated US$200,000 to help provide urgently needed food, water and
medical supplies to more than 30,000 people isolated in remote villages.”
“PNG LNG has now safely resumed LNG production, ahead of ExxonMobil’s eight-week estimate, with LNG exports
expected to resume shortly. Santos carries appropriate property damage and business interruption insurance for its
assets.”
“I would like to thank ExxonMobil, our joint venture partners and the PNG Government for all their efforts in safely
resuming production. Santos looks forward to continuing to work with our local communities in PNG who still have a
long road to recovery following the loss of life, homes and crops caused by the earthquake,” Mr Gallagher said.
The temporary PNG LNG shutdown, combined with planned maintenance at our facilities in Moomba and in Queensland,
reduced first quarter production by 1.2 mmboe to 13.8 mmboe. Excluding these shutdowns, production would have
been in line with the prior quarter.
On 3 April 2018, Santos announced it had received an unsolicited, non-binding and indicative proposal from Harbour
Energy to acquire 100 percent of Santos shares by way of a scheme of arrangement.
“We will engage with Harbour Energy on its proposal to determine whether an offer for the company that is capable of
recommendation by the Board for consideration by shareholders, can be developed,” Mr Gallagher said.
“Regardless of the outcome of engagement with Harbour, our strong free cash flows, sustainable low cost base, stable
production out to at least 2025 and the resilience of our diverse natural gas asset portfolio mean Santos is very well
positioned to drive value for our shareholders going forward. When combined with the continued progress of our key
growth projects in Northern Australia and PNG and our strong opportunity set built around existing infrastructure and
our core natural gas assets, Santos is in a great position to increase its value over the medium and longer term.”
Board renewal
Mr Keith Spence was appointed an independent non-executive Director on 1 January 2018 and became Chairman on 19
February 2018 following the retirement of Mr Peter Coates AO.
Mr Spence has over 40 years’ experience in managing and governing oil and gas operations in Australia, Papua New
Guinea, the Netherlands and Africa. His full biography can be viewed at www.santos.com/who-we-are/leadership-team/
2018 Annual General Meeting
The 2018 Annual General Meeting will be held on Thursday 3 May 2018 at the Adelaide Convention Centre commencing
at 10:00am ACST. Registrations for the webcast are now open at www.santos.com
Santos Ltd l First Quarter Activities Report l 19 April 2018 Page 2 of 4
Comparative performance
Santos share Units Q1 2018 Q4 2017 Change 2018 YTD 2017 YTD Change
Production mmboe 13.8 15.0 -8% 13.8 14.8 -7%
Sales volume mmboe 18.9 21.8 -13% 18.9 18.6 +2%
Average realised oil price US$/bbl 71.6 67.8 +6% 71.6 57.63 +24%
Sales revenue US$million 794 861 -8% 794 684 +16%
Capital expenditure1 US$million 139 204 -32% 139 134 +4%
1 Capital expenditure including restoration expenditure and acquisition of exploration assets but excluding capitalised interest.
Sales volumes (Santos share)
Product Unit Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
LNG 000 t 642.5 839.5 729.0 642.5 729.0
Domestic sales gas and ethane PJ 53.6 56.5 47.8 53.6 47.8
Crude oil 000 bbls 2,433.9 2,639.9 2,086.6 2,433.9 2,086.6
Condensate 000 bbls 1,068.6 1,064.2 1,046.5 1,068.6 1,046.5
LPG 000 t 21.5 51.7 42.8 21.5 42.8
Sales
Own product mmboe 13.8 14.1 14.1 13.8 14.1
Third party mmboe 5.1 7.7 4.5 5.1 4.5
Total sales volume mmboe 18.9 21.8 18.6 18.9 18.6
First quarter sales volumes were lower than the prior quarter due primarily to the temporary outage at PNG LNG as a
result of a severe earthquake in the region, combined with lower third party sales volumes from GLNG due to gas
purchases from QGC during the fourth quarter of 2017 and the cessation of a GLNG third party gas supply contract.
Sales revenues (Santos share)
Product Unit Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
LNG US$m 276 323 272 276
Domestic sales gas and ethane US$m 261 265 212 261
Crude oil US$m 174 179 120 174
Condensate US$m 71 65 58 71
LPG US$m 11 29 22 11
Sales
Own product US$m 559 563 504 559
Third party US$m 235 298 180 235
Total sales revenue US$m 794 861 684 794
Third party product purchases US$m 199 229 119 199
First quarter sales revenues were lower than the prior quarter primarily due to lower sales from PNG LNG combined
with lower third party sales revenues from GLNG, partially offset by higher commodity prices.
Santos Ltd l First Quarter Activities Report l 19 April 2018 Page 3 of 4
Average realised prices
Unit Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
LNG price US$/mmBtu 8.19 7.33 7.09 8.19 7.09
Domestic sales gas price US$/GJ 4.87 4.68 4.45 4.87 4.45
Oil price US$/bbl 71.56 67.85 57.63 71.56 57.63
Condensate price US$/bbl 66.79 61.33 55.68 66.79 55.68
LPG price US$/t 529.82 567.71 503.75 529.82 503.75
Production (Santos share)
Product Unit Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
Sales gas to LNG plant PJ 27.0 31.6 31.2 27.0 31.2
Domestic sales gas and ethane PJ 38.4 40.3 38.7 38.4 38.7
Crude oil 000 bbls 1,634.5 1,504.0 1,627.0 1,634.5 1,627.0
Condensate 000 bbls 708.6 888.4 855.7 708.6 855.7
LPG 000 t 34.5 37.8 35.9 34.5 35.9
Total production mmboe 13.8 15.0 14.8 13.8 14.8
First quarter production was lower than the prior quarter due to the PNG LNG outage and lower Cooper gas production
due to planned maintenance at the Moomba plant. Excluding the 1.2 mmboe impact of these shutdowns, total production
would have been in-line with the prior quarter.
2018 Guidance
The shutdown of the PNG LNG project during the quarter as a result of the significant earthquake is expected to reduce
2018 full-year production and sales volumes by approximately 2 mmboe. The upper ends of production and sales volume
guidance has been revised accordingly while the lower ends have been maintained.
Cost saving initiatives and efficiencies coupled with a diversified portfolio of assets has resulted in no change to upstream
unit production cost guidance. Capital expenditure guidance has been lowered as a result of cost saving initiatives and
some changes to the timing of exploration activity in PNG and the Northern Territory.
Guidance is subject to PNG LNG earthquake recovery impacts and costs still being assessed, and potential insurance
recoveries.
Item Previous guidance Updated guidance
Sales volumes 72-78 mmboe 72-76 mmboe
Production 55-60 mmboe 55-58 mmboe
Upstream production costs US$8.2-8.8/boe No change
Depreciation, depletion and amortisation (DD&A) US$725-775 million No change
Capital expenditure (including exploration, evaluation and restoration, excl cap. int.) US$825-875 million US$800-850 million
Further detail of 2018 year-to-date capital expenditure, including exploration and evaluation expenditure, is reported in
the table on page 11 of this report.
Santos Ltd l First Quarter Activities Report l 19 April 2018 Page 4 of 4
Oil price hedging
3.1 million barrels of oil hedging expired in the first quarter under the zero-cost three way collar hedges. The following
oil price hedging positions were in place as at 11 April 2018.
2018 Open oil price positions
Zero-cost three-way collars (barrels) 1
9,418,750
Brent short call price ($/bbl) US$60.30
Brent long put price ($/bbl) US$48.48
Brent short put price ($/bbl) US$40.80
When Brent price is above the weighted average short call price, Santos realises short call price. When Brent price is between the long put price and the
weighted average short call price, Santos realises Brent price. When Brent price is between the long put price and the short put price, Santos realises the
long put price. When Brent price is below the short put price, Santos realises Brent price plus the difference between the long put price and the short put
price.
2019 Open oil price positions
Zero-cost collars (barrels)1 3,431,000
Ceiling ($/bbl) US$79.27
Floor ($/bbl) US$45.00
When Brent price is above the weighted average ceiling price, Santos realises ceiling price. When Brent price is between the floor and ceiling price,
Santos realises Brent price. When Brent price is below the floor price, Santos realises floor price.
Santos Ltd l First Quarter Activities Report l 19 April 2018 Page 5 of 4
Cooper Basin
Santos share Units Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
Sales volume
Sales gas and ethane
Own product PJ 15.4 14.0 18.2 15.4 18.2
Third party PJ 0.9 0.6 0.6 0.9 0.6
Total PJ 16.3 14.6 18.8 16.3 18.8
Condensate
Own product 000 bbls 440.7 314.6 371.6 440.7 371.6
Third party 000 bbls 99.3 8.6 38.5 99.3 38.5
Total 000 bbls 540.0 323.2 410.1 540.0 410.1
LPG
Own product 000 t 6.3 40.2 32.5 6.3 32.5
Third party 000 t 6.0 5.2 2.0 6.0 2.0
Total 000 t 12.3 45.4 34.5 12.3 34.5
Crude oil
Own product 000 bbls 472.7 511.4 412.8 472.7 412.8
Third party 000 bbls 1,055.5 1,131.5 730.2 1,055.5 730.2
Total 000 bbls 1,528.2 1,642.9 1,143.0 1,528.2 1,143.0
Total sales volume mmboe 4.9 4.9 5.0 4.9 5.0
Total sales revenue US$million 224 212 175 224
Production
Sales gas and ethane PJ 14.3 15.4 14.7 14.3 14.7
Condensate 000 bbls 230.8 247.9 215.7 230.8 215.7
LPG 000 t 27.7 27.9 27.3 27.7 27.3
Crude oil 000 bbls 658.8 647.8 649.7 658.8 649.7
Total production mmboe 3.6 3.7 3.6 3.6 3.6
Capital expenditure US$million 60 61 38 60
The structural transformation of the Cooper Basin continues to deliver lean, efficient, low-cost operations. Average drill-
stimulate-complete gas well costs are down 42% to $2.8 million from the beginning of 2016 and drilling cycle times
have halved over the same period. The asset now generates significant free cash flow and is set to increasingly benefit
from the substitution of Santos Eastern Queensland gas into the Horizon contract, thereby making more Cooper Basin
gas available for domestic east coast customers.
First quarter sales gas and ethane volumes of 15.4 PJ were 10% higher than prior quarter due to higher sales to
domestic gas customers. Condensate sales volumes of 540,100 barrels were higher than the previous quarter due to
the timing of liftings.
Sales gas and ethane production, condensate and LPG production were lower than the previous quarter due to scheduled
Moomba plant maintenance in March. Excluding the impact of the scheduled maintenance, production would have been
in line with the previous quarter with gas production above the average run rate for 2017 as a result of the increased
drilling activity.
Lean well design and low cost shallow oil development led to an increase in crude oil production to 658,800 barrels.
Eighteen wells were drilled in the quarter. Eight gas development wells were cased and suspended for future production.
Two oil development wells were cased and suspended for future production and one plugged and abandoned. Three
near-field exploration (NFE)/appraisal gas wells were cased and suspended for future production and one suspended
for further evaluation. Three NFE/appraisal oil wells were cased and suspended for future production.
Santos is now targeting to drill up to 80 wells in 2018, including up to 20 exploration wells. With lower costs, increased
exploration investment and gas being delivered into domestic east coast markets, ongoing reserve replenishment and
additions are anticipated over time.
Santos Ltd l First Quarter Activities Report l 19 April 2018 Page 6 of 4
Queensland & NSW1
Santos share Units Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
Sales volume
GLNG Joint Venture
LNG - own product 000 t 167.4 155.5 172.9 167.4 172.9
LNG – third-party 2
000 t 180.7 321.6 228.0 180.7 228.0
LNG – total 000 t 348.1 477.1 400.9 348.1 400.9
Domestic contracts PJ 7.0 7.5 3.3 7.0 3.3
Eastern Queensland (non-operated) 3
PJ 5.5 3.6 3.8 5.5 3.8
Total sales volume4 mmboe 5.5 6.5 5.0 5.5 5.0
Total sales revenue4 US$million 210 216 167 210
Production
GLNG Joint Venture
Sales gas to LNG PJ 10.3 10.7 9.8 10.3 9.8
Domestic contracts PJ 0.9 0.7 0.9 0.9 0.9
Eastern Queensland (non-operated) 3
PJ 5.5 5.5 5.1 5.5 5.1
NSW1 PJ 0.2 0.2 0.2 0.2 0.2
Total production 4
mmboe 2.9 2.9 2.7 2.9 2.7
Capital expenditure US$million 47 59 30 47
1
New South Wales entered the core portfolio on 1 January 2018. NSW was previously reported as part of ‘Other’ assets.
2 Includes LNG produced from Santos portfolio gas and third-party quantities.
3 Combabula, Ramyard, Spring Gully, Denison and Tardrum.
4 Total sales volume, sales revenue and production include minor condensate production from Denison.
GLNG operational data (gross) Units Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
Production
LNG1 000 t 1,217 1,542 1,367 1,217 1,367
Sales gas to LNG plant
GLNG equity gas PJ 33 40 34 33
Santos portfolio gas PJ 15 15 15 15
Third-party PJ 26 39 34 26
Total sales gas to LNG plant PJ 74 94 83 74
LNG cargoes shipped 19 27 21 19
1
Includes LNG produced from GLNG equity gas, Santos portfolio gas and third-party quantities.
LNG production in the first quarter of 1.2 million tonnes was lower than the previous quarter primarily due to high-
volume gas purchases from QGC in the previous quarter during their LNG plant shutdown, combined with the expiration
of a third-party gas supply contract in December 2017. Nineteen LNG cargoes were loaded in the first quarter.
Forty-five development wells were drilled across the GLNG acreage and 36 development wells across Santos’ non-
operated Eastern Queensland acreage.
GLNG upstream equity sales gas production remained steady relative to the previous quarter supported by stronger
Roma production. Gross daily production from Fairview decreased slightly to 457 TJ/day at the end of the quarter due
to lower well availability. An additional rig was mobilised and well availability has returned to ~94%.
Gross daily production from Roma increased to 61 TJ/day at the end of the quarter. Roma field production is expected
to grow as the reservoir continues to depressure and new areas of Roma come online. The Roma East project has
commenced and two drilling rigs have drilled 15 wells to date.
Santos Ltd l First Quarter Activities Report l 19 April 2018 Page 7 of 4
Gross daily production from the Scotia field at the end of the quarter remained steady at 27 TJ/day. The Scotia CF1
project is 85% complete, with 47 wells now online and facilities being commissioned. Production from the field is
expected to grow as the reservoir depressures. Production from the Arcadia field remained steady.
The successful Mahalo Mira-6 pilot well was brought online in December 2017 (Santos 30% non-operator). Production
rates are very encouraging and the joint-venture is currently reassessing potential volumes, well designs, appraisal
programs and development plans to determine the commerciality of the Mahalo area.
PNG
Santos share Units Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
Sales volume
PNG LNG
LNG1 000 t 180.9 282.6 232.8 180.9 232.8
Condensate 000 bbls 240.4 378.1 374.7 240.4 374.7
Crude oil 000 bbls 3.3 3.4 5.0 3.3 5.0
Total sales volume mmboe 2.0 3.0 2.6 2.0 2.6
Total sales revenue US$million 100 139 121 100
Production
PNG LNG
Sales gas to LNG1 PJ 10.4 16.4 16.1 10.4 16.1
Condensate 000 bbls 221.3 354.4 377.1 221.3 377.1
Crude oil 000 bbls 2.7 4.1 5.0 2.7 5.0
Total production mmboe 2.0 3.1 3.1 2.0 3.1
Capital expenditure US$million 6 22 10 6
1 Includes SE Gobe
PNG LNG operational data
Units Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
(gross)
Production
LNG Mt 1.3 2.1 2.0 1.3 2.0
Sales gas to LNG plant PJ 78 123 121 78
Condensate1 000 bbls 1,635 2,611 2,786 1,635 2,786
Sales gas (SE Gobe)2 PJ 3 4 4 3
LNG cargoes shipped 17 28 26 17
1 Measured at the Kutubu entry point.
2 Purchased by PNG LNG.
PNG LNG sales volumes and production were lower than the prior quarter due to the temporary shutdown of facilities
following a severe earthquake in the region on 26 February 2018. Production recommenced in April, ahead of
ExxonMobil’s previously estimated eight week timeframe, with one LNG train operating at the LNG plant near Port
Moresby. It is expected that the second train will restart as gas production is ramped up over time.
During the period in which PNG LNG operations were shut down, maintenance work at the LNG plant site, which had
previously been scheduled for April and October, was conducted. Planned modifications to the Hides Gas Conditioning
Plant, including some Angore tie-in work, were also brought forward.
Santos carries appropriate property damage and business interruption insurance cover for its assets.
Santos along with the other PNG LNG parties has commenced discussions with both the PRL 3 (P’nyang) and PRL 15
(Papua LNG) joint ventures to build alignment for the proposed construction of three additional LNG trains at the PNG
LNG site. Alignment may be achieved in a number of ways, including the potential for Santos to farm-in to the P’nyang
field.
Santos Ltd l First Quarter Activities Report l 19 April 2018 Page 8 of 4
Northern Australia
Santos share Units Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
Sales volume
Darwin LNG
LNG 000 t 113.5 79.8 95.3 113.5 95.3
Bayu Undan
Condensate 000 bbls 108.3 157.1 187.5 108.3 187.5
LPG 000 t 9.2 6.3 8.3 9.2 8.3
Total sales volume mmboe 1.3 1.0 1.2 1.3 1.2
Total sales revenue US$million 48 41 42 48
Production
Darwin LNG
Sales gas to LNG PJ 6.3 4.4 5.3 6.3 5.3
Bayu Undan
Condensate 000 bbls 109.7 155.8 155.7 109.7 155.7
LPG 000 t 6.8 9.9 8.6 6.8 8.6
Total production mmboe 1.2 1.1 1.1 1.2 1.1
Capital expenditure US$million 9 7 17 9
Darwin LNG / Bayu-Undan
Units Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
operational data (gross)
Production
LNG 000 t 947 902 899 947
Sales gas to LNG plant PJ 57 55 54 57
Condensate 000 bbls 1,004 1,299 1,647 1,004 1,647
LPG 000 t 63 77 86 63
LNG cargoes shipped 15 14 14 15
Darwin LNG continued its strong operating performance with sales volumes and production higher than the previous
quarter and in-line with the delivery schedule.
The successful completion of the two-well appraisal campaign over Barossa (Santos 25%) in 2017 firmed its position as
the lead candidate for Darwin LNG backfill and resulted in a significant increase in 2C resource.
On 21 March 2018, Santos announced that the National Offshore Petroleum Safety and Environmental Management
Authority (NOPSEMA) had assessed and accepted the Barossa joint venture’s project proposal. This approval milestone
confirms Barossa as the most likely gas supply source able to deliver gas when Bayu Undan production ends in the early
2020s.
The Barossa joint venture remains on track to take a FEED-entry decision in the second quarter of 2018, with FID
targeted for late 2019.
Santos Ltd l First Quarter Activities Report l 19 April 2018 Page 9 of 4
Western Australia1
Santos share Units Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
Sales volume
Sales gas PJ 13.8 12.2 11.3 13.8 11.3
Condensate 000 bbls 177.4 203.5 73.1 177.4 73.1
Crude oil 000 bbls 300.3 416.7 341.5 300.3 341.5
Total sales volume mmboe 2.8 2.7 2.4 2.8 2.4
Total sales revenue US$million 87 96 71 87
Production
Sales gas PJ 13.3 13.6 11.4 13.3 11.4
Condensate 000 bbls 144.3 128.0 106.3 144.3 106.3
Crude oil 000 bbls 323.8 279.0 337.4 323.8 337.4
Total production mmboe 2.8 2.7 2.4 2.8 2.4
Capital expenditure US$million 2 23 18 2
1
Western Australia oil assets are now reported under the segment ‘Western Australia’. They were previously reported as part of ‘Other’ assets.
Santos’ low-cost Western Australia conventional gas assets are well positioned against other suppliers, with the capacity
and significant uncontracted 2P reserves to meet demand.
Sales gas volumes were higher than the prior quarter due to higher customer nominations from Reindeer. Condensate
sales volumes were lower than the prior quarter due to the timing of liftings.
Condensate production was higher due to a greater proportionate share of production being sourced from the
condensate rich Spar 2 and Halyard 1 wells.
Asia1
Santos share Units Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
Sales volume
Sales gas1 PJ 4.2 4.9 6.7 4.2 6.7
Condensate 000 bbls 2.4 2.3 0.9 2.4 0.9
Crude oil 000 bbls 602.0 577.0 613.5 602.0 613.5
Total sales volume mmboe 1.3 1.4 1.8 1.3 1.8
Total sales revenue US$million 64 65 68 64
Production
Sales gas PJ 4.2 4.9 6.4 4.2 6.4
Condensate 000 bbls 2.4 2.1 0.8 2.4 0.8
Crude oil 000 bbls 649.2 573.0 635.0 649.2 635.0
Total production mmboe 1.4 1.5 1.7 1.4 1.7
Capital expenditure US$million 1 17 14 1
1 As at 1 January 2018, the ‘Other’ reporting segment was restructured to comprise Santos’ Asian assets only. New South Wales entered the core portfolio and
is now reported under the segment ‘Queensland and NSW’ and WA Oil is now reported under the segment ‘Western Australia’. The comparative periods have
been restated accordingly.
Gains in operating efficiencies and a strong production performance see Santos’ Asian assets continuing to deliver strong
free cash flows. Santos is currently in advanced discussions with a number of parties regarding a potential sale of the
assets.
In Indonesia, average daily gross gas production increased to 93TJ/d during the quarter. Reported production was lower
however due to lower net entitlements.
In Vietnam, average daily gross oil and gas production volumes increased to 25,000 bbls/d and 25 TJ/d, respectively.
Santos Ltd l First Quarter Activities Report l 19 April 2018 Page 10 of 4
Corporate, exploration and eliminations
Santos share Units Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
Total sales volume mmboe 1.2 2.3 0.7 1.2 0.7
Total sales revenue US$million 61 92 40 61
Capital expenditure US$million 14 15 7 14
Sales volumes and revenues in the corporate segment primarily represents gas trading activities. Capital expenditure
primarily represents exploration and evaluation activities not recorded against assets.
Capital expenditure
Total exploration, evaluation and development expenditure is summarised in the table below.
US$million Q1 2018 Q4 2017 Q1 2017 2018 YTD 2017 YTD
Capital expenditure
Exploration1 17 27 30 17
Evaluation 12 29 17 12
Development and other capex (including restoration) 110 148 87 110
Capital expenditure excl capitalised interest 139 204 134 139
Capitalised interest 1 1 2 1
Total capital expenditure1 140 205 136 140
Exploration and evaluation expensed
Exploration 17 15 30 17
Evaluation 3 12 4 3
Total current year expenditure 20 27 34 20
Write-off of amounts capitalised in prior years - (2) 4 -
Total expensed 20 25 38 20
1 Includes acquisition of exploration assets
Exploration activity
Well name Basin/area Target Santos % Well status
Red Rock Gully 1 Comet Ridge - QLD Gas 50.5% C&S, successful gas
Santos Ltd l First Quarter Activities Report l 19 April 2018 Page 11 of 4
Drilling summary
Near-field exploration (NFE) / Appraisal wells
Well name Basin/area Target Santos % Well status
Bantam 1 Cooper - QLD Gas 60.06% C&S, successful gas
Casimir 1 Cooper - SA Gas 75% C&S for further evaluation
Kooroopa 4 Cooper - QLD Oil 60% C&S, successful oil
Napowie 3 Cooper - SA Gas 66.6% C&S, successful gas
Takyah 6 Cooper - QLD Oil 60% C&S, successful oil
Wackett 17 Cooper - QLD Gas 60.06% C&S, successful gas
Cocinero 6 Cooper - QLD Oil 55% C&S, successful oil
Development wells
Well name Basin/area Target Santos % Well status
Avalon 4 (re-entry) Scotia - QLD Gas 30% C&C, successful gas
Balcaminga 3 Cooper - SA Gas 66.6% C&S, successful gas
Cocinero 5 Cooper - QLD Oil 55% P&A
Cocinero 7 Cooper - QLD Oil 55% C&S, successful oil
Cocinero 8 Cooper - QLD Oil 55% C&S, successful oil
Combabula 269# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 289# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 308# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 309# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 310# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 311# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 335# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 336# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 354# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 355# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 356# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 357# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 358# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 381# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 382# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 383# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 403# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 404# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 426# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 453# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 466# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 467# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 468# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 469# Combabula - QLD Gas 7.28% C&S, successful gas
Santos Ltd l First Quarter Activities Report l 19 April 2018 Page 12 of 4
Well name Basin/area Target Santos % Well status
Combabula 470# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 471# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 472# Combabula - QLD Gas 7.28% C&S, successful gas
Combabula 473# Combabula - QLD Gas 7.28% C&S, successful gas
Coonatie 25** Cooper - SA Gas 100% C&S, successful gas
Durham Ranch 876# Spring Gully - QLD Gas 4% C&S, successful gas
FV10-42-21 Fairview - QLD Gas 23.85% C&S, successful gas
FV11-69-21 Fairview - QLD Gas 23.85% C&C, successful gas
FV11-70-21 Fairview - QLD Gas 23.85% C&C, successful gas
Gooranie 8 Cooper - SA Gas 66.6% C&S, successful gas
Gooranie 9 Cooper - SA Gas 66.6% C&S, successful gas
Gooranie 10 Cooper - SA Gas 66.6% C&S, successful gas
Gooranie 11 Cooper - SA Gas 66.6% C&S, successful gas
Kelsall 3 Scotia - QLD Gas 30% C&S, successful gas
Muggleton 225# Combabula - QLD Gas 7.28% C&S, successful gas
Muggleton 33# Combabula - QLD Gas 7.28% C&S, successful gas
Pine Hills 299# Combabula - QLD Gas 7.28% C&S, successful gas
Reedy Creek 24# Combabula - QLD Gas 7.28% C&S, successful gas
Reedy Creek 45# Combabula - QLD Gas 7.28% C&S, successful gas
Reedy Creek 91# Combabula - QLD Gas 7.28% C&S, successful gas
Reedy Creek 119# Combabula - QLD Gas 7.28% C&S, successful gas
RM02-02-2 Roma - QLD Gas 30% C&S, successful gas
RM02-60-1 Roma - QLD Gas 30% C&S, successful gas
RM03-26-1 Roma - QLD Gas 30% C&S, successful gas
RM03-99-1 Roma - QLD Gas 30% C&S, successful gas
RM08-17-5 Roma - QLD Gas 30% C&S, successful gas
RM08-92-1 Roma - QLD Gas 30% C&S, successful gas
RM08-94-1 Roma - QLD Gas 30% C&S, successful gas
RM13-41-1 Roma - QLD Gas 30% C&S, successful gas
RM13-43-1 Roma - QLD Gas 30% C&S, successful gas
RM13-61-1 Roma - QLD Gas 30% C&S, successful gas
RM15-04-1 Roma - QLD Gas 30% C&S, successful gas
RM15-05-1 Roma - QLD Gas 30% C&S, successful gas
RM15-11-1 Roma - QLD Gas 30% C&S, successful gas
RM50-14-1 Roma - QLD Gas 30% C&S, successful gas
RM50-15-1 Roma - QLD Gas 30% C&S, successful gas
RM50-16-1 Roma - QLD Gas 30% C&S, successful gas
RM50-17-1 Roma - QLD Gas 30% C&S, successful gas
RM50-24-1 Roma - QLD Gas 30% C&S, successful gas
RM50-25-1 Roma - QLD Gas 30% C&S, successful gas
RM50-26-1 Roma - QLD Gas 30% C&S, successful gas
Santos Ltd l First Quarter Activities Report l 19 April 2018 Page 13 of 4
Well name Basin/area Target Santos % Well status
RM50-27-1 Roma - QLD Gas 30% C&S, successful gas
RM50-33-1 Roma - QLD Gas 30% C&S, successful gas
RM50-34-1 Roma - QLD Gas 30% C&S, successful gas
RM50-36-1 Roma - QLD Gas 30% C&S, successful gas
RM50-38-1 Roma - QLD Gas 30% C&S, successful gas
RM50-44-1 Roma - QLD Gas 30% C&S, successful gas
RM50-46-1 Roma - QLD Gas 30% C&S, successful gas
RM50-47-1 Roma - QLD Gas 30% C&S, successful gas
RM50-58-1 Roma - QLD Gas 30% C&S, successful gas
Scotia 47 (re-entry) Scotia - QLD Gas 30% C&C, successful gas
Scotia 54 Scotia - QLD Gas 30% C&S, successful gas
Scotia 57 (re-entry) Scotia - QLD Gas 30% C&C, successful gas
Scotia 59 Scotia - QLD Gas 30% C&S, successful gas
Scotia 60 (top hole) Scotia - QLD Gas 30% Suspended for later deepening
Scotia 60 (re-entry) Scotia - QLD Gas 30% C&S, successful gas
Scotia 66 Scotia - QLD Gas 30% C&S, successful gas
Scotia 67 (re-entry) Scotia - QLD Gas 30% C&C, successful gas
Scotia 68 (re-entry) Scotia - QLD Gas 30% C&C, successful gas
Scotia 70 (re-entry) Scotia - QLD Gas 30% C&C, successful gas
The Rock 7 Scotia - QLD Gas 30% C&S, successful gas
Tirrawarra 89 Cooper - SA Gas 66.6% C&S, successful gas
Varanus 4 Cooper - SA Gas 66.6% C&S, successful gas
# Not operated by Santos
** LTAP = Less than all parties
Seismic activity
The table below details seismic activity during the quarter and status.
Permit Basin/area Survey Type km/km2 Status
Southern Amadeus
EP82, EP112, EP125 Amadeus 2D 124.7 km2 of 402 km2 31% complete
2D Phase 2
Santos Ltd l First Quarter Activities Report l 19 April 2018 Page 14 of 4
Abbreviations and conversion factors
Abbreviations Conversion factors
C&C cased and completed Sales gas and ethane, 1 PJ 171.937 boe x 10
C&S cased and suspended Crude oil, 1 barrel 1 boe
gas coal seam gas Condensate, 1 barrel 0.935 boe
DES delivered ex ship LPG, 1 tonne 8.458 boe
FPSO floating production, storage and offloading LNG, 1 PJ 18,040 tonnes
GJ Gigajoules LNG, 1 tonne 52.54 mmBtu
kbbls thousand barrels
kt thousand tonnes
LNG liquefied natural gas
LPG 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
Santos Ltd l First Quarter Activities Report l 19 April 2018 Page 15 of 4
