Santos today announced that its total proved and probable (2P) hydrocarbon reserves were 1,364 million barrels of oil equivalent (mmboe) at the end of 2011.
Successful appraisal and commercialisation activity, and the sanctioning of the Fletcher Finucane project, added 82 mmboe of 2P reserves in 2011. The reserve additions represent an organic 2P reserves replacement ratio (RRR) of 173%, before net acquisitions and divestments.
The reserve additions were driven by strong growth in Cooper Basin gas reserves combined with increases in coal seam gas (CSG) reserves dedicated to the GLNG project.
Net acquisitions and divestments during 2011 reduced 2P reserves by 116 mmboe. The key movements in 2P reserves from acquisitions and divestments were:
After deducting 2011 production of 47 mmboe, Santos’ year-end 2P reserves were 1,364 mmboe, 81 mmboe lower than 2010. The organic 2P RRR is 510% on a three-year rolling-average basis.
On a proved (1P) basis, year-end reserves were 649 mmboe, 3 mmboe higher than 2010. This represents an organic 1P RRR of 262% on a three-year rolling-average basis.
STRONG GROWTH IN COOPER BASIN GAS RESERVES
Successful initial results from the Cooper Basin gas infill drilling program, combined with improved base performance, resulted in the booking of 498 petajoules (PJ) gross of 2P reserves in 2011. After allowing for 2011 production, Santos’ share of Cooper Basin 2P gas reserves has increased by 30% to over 1,100 PJ.
Santos Chief Executive David Knox said the company has built a strong store-cupboard of reserves and resources which will underpin production growth for the rest of this decade.
“ Santos has in excess of 10,000 PJ of natural gas 2P reserves and 2C resources in total outside of the GLNG project in eastern Australia, including the largest positions in the Cooper Basin and New South Wales.
“In addition, Santos has over 3,500 PJ of natural gas 2P reserves and 2C resources in total in Western Australia and the Northern Territory, and a significant position in Asia.”
“Our significant reserve and resource position, combined with existing infrastructure, leaves Santos strategically well placed to supply the growing demand for natural gas in Australia and Asia,” Mr Knox said.
[mappress] Source: Santos, February 8, 2012