Adverse weather conditions affected Santos Q1 2011 Operational results; Revised 2011 Production Guidance to 47-50 mmboe

Santos reports oil and natural gas production of 11 mmboe for first quarter 2011, down 11% than the corresponding period. This is due to adverse weather in Central and Western Australia. Due to this, Santos revised production guidance for the year 2011 from 48-52 mmboe to 47-50 mmboe.

Operational update during the Quarter:

GLNG 

Sales gas production of 2.4 PJ (412.65 kboe)was 50% lower than Q1 2010 due to Santos’ interest in GLNG reducing from 60% in Q1 2010 to 30% in Q1 2011 following the sale of interests in the project to Total and KOGAS.

Carnarvon Basin

Gas production from the John Brookes field of 10.3 PJ (1771 kboe) was 17% lower than Q1 2010 due to cyclone activity and lower customer nominations. Mutineer-Exeter production of 0.05 mmbbl was 67% lower than the previous quarter due to unplanned FPSO repairs in January and February 2011. Stag production of 0.35 mmbbl was 46% higher when compared to Q4 2010 due to the completion of two new development wells following a drilling campaign during Q4 2010.

Bayu-Undan / Darwin LNG

Gross Bayu-Undan gas production of 50.9 PJ (8,752 kboe) was 16% higher than Q1 2010.  Santos’ net entitlement production of 3.7 PJ (636 kboe)was marginally higher than Q1 2010.

Indonesia

Indonesia sales gas production of 10 PJ (1,719 kboe) was 3% higher than Q1 2010 due to temporary high gas demand from Maleo. Crude oil production of 0.11 mmbbl, down 8% lower over  Q4 2010 mainly due to Oyong oil field natural decline.

Key Exploration Activities:

Source: Derrick Petroleum Planned Exploration Wells Database

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