Santos Limited · ASX:STO
Santos — Non-Deal Roadshow (June 2006)
15 slides from Santos's roadshow presentation, June 2006
Slide 1: Options for Growth
Santos Limited Options for Growth European Investor Briefings June/July 2006 1 Santos overview Australian based E&P company operating internationally USA Vietnam Indonesia PNG Timor/Bonaparte Kyrgyzstan Egypt Western Australia Legend Eastern Exploration Australia Production 2 1
Slide 2: Santos key statistics; 2005 record financial result
Santos key statistics • Market capitalisation: ~A$7.3 billion (ASX top 40) • Employees: ~1600 • 2005 total shareholder return: 50% • Proven plus probable reserves: 774 mmboe @ 31/12/05 2005 Production 2005 Revenue Total 56.0 mmboe Total A$2,462m Crude oil 15.3 mmboe Sales gas and Sales gas Crude oil
Slide 3: Operating cash flow; Growth strategy driven by basin excellence
Operating cash flow Cashflow growth of 12% pa over 10+ years 1600 1400 1200 Tax change 1000 12% CAGR 800 600 Moomba incident 400 200 94 95 96 97 98 99 00 01 02 03 04 05 5 Growth strategy driven by basin excellence Strong cashflow underpins active exploration program Identify New Core Areas Asia, Mid
Slide 4: Enhance existing core areas
Enhance existing core areas Production 88% Eastern Australia Gas & Oil 2P Reserves 82% • No 1 in gas production & reserves Contingent Resources 36% • Established infrastructure 2005 Cash Flow $1,278m Darwin • Exploitation opportunities Carnarvon Surat/ Alice Springs Bowen Moomba Cooper Brisbane Pt B
Slide 5: Southern margins gas focus; Cooper Oil Project
Enhance existing core areas Southern margins gas focus South • Growing exploration Australia opportunity base Victoria • Otway – Casino/ Henry Glenaire Kipper acceleration, low risk Galloway follow up 2007 drilling Otway Basin Casino Gippsland • Sorell - high risk, LNG Basin scale deepwater portfoli
Slide 6: Cooper Oil Project; Western Australian oil and gas
Enhance existing core areas Cooper Oil Project • Early results are Queensland ATP299P encouraging South 89% Australia • Three rigs operational Dullingari 66.6% – 7 days spud to spud Ballera Naccowlah 55.5% • Initial 26 wells drilled Jackson Jalbu 66.6% ATP267P – 25 successful (96%) Moomba 61% Aquita
Slide 7: Western Australian oil and gas; Papua New Guinea, Timor/Bonaparte, Indonesia
Enhance existing core areas Western Australian oil and gas Mutineer-Exeter • Mutineer Exeter oil (STO 34%, operator) – Production rate increased from 35k to 55k bbl/day – Further development wells to be drilled • 3D seismic survey John Brookes • Stag oil (STO 67%) continues to perform well • John Br
Slide 8: Darwin LNG - Development; Timor/Bonaparte LNG
Mature emerging core areas Darwin LNG - Development • 10.6%, ConocoPhilips operated • 2P reserves 3.8 Tcf, 509 mmbbls liquids (gross) • Capex ~US$3.6 billion (gross) • Liquids recycle producing 100,000+ bpd • First LNG February 2006 • 3.5 Mt/yr LNG initial capacity 15 Mature emerging core areas Timo
Slide 9: Indonesia – building a core business; Jeruk oil discovery
Mature emerging core areas Indonesia – building a core business • Strong acreage position in prospective basins LNG Hui Aman discovery Kakap Bontang short gas Good prospect inventory Kalimantan Kutei Oil Sulawesi West Papua Jeruk discovery West Papua Good prospect inventory Java Development Projects
Slide 10: Identify potential new core areas; Vietnam – Nam Con Son Basin
Identify potential new core areas Kyrgyzstan 2006 regional studies and seismic acquisition Vietnam New country entry, 2 wells in 2006 USA Egypt Targeting deep plays 2 wells in 2H 2006 in shallow state waters, 5 wells in 2H 2006 Production 4% 2P Reserves 1% Contingent Resources nil 2005 Cash Flow $94
Slide 11: Drilling activity increasing; Summary - production outlook
Drilling activity increasing Reflecting more opportunities and higher oil price 400 80 350 70 300 60 Drilling Activity 250 50 Oil Prices 200 40 150 30 100 20 50 10 0 0 2001 2002 2003 2004 2005 2006 Santos Operated Offshore Non Operated Offshore Santos Operated Onshore Non Operated Onshore Oil price
Slide 12: Why Santos?; Sustainable long-term growth
Why Santos ? • Growing production profile • Active development portfolio • Multiple gas commercialisation options - 2.0 billion boe of contingent resources • Attractive appraisal opportunities - Jeruk, Timor/ Bonaparte LNG, Hiu Aman • Material exploration program - ~ 20 wildcats in 2H 2006 23 Sustai
Slide 13: Reference Slides: 2005 delivers on strategic targets
Reference Slides 25 2005 delivers on strategic targets Production Growth 6-8% 19%* target 2005 actual EBITDAX growth p.s. Reserve Replacement Ratio *** >10% 59% Netback target actual 140% 165% $22 $32** target actual ROCE target actual >10% 20% target actual Reserve Replacement Costs *** US$5.50 US$
Slide 14: Strong reserve replacement; EHS performance
Strong reserve replacement 2005 Year End Reserves 1P Reserves 414 mmboe up 19% 2P Reserves 774 mmboe up 20% Contingent Resources 1,971 mmboe up 37% 2005 1P RRR 218% 3yr Ave RRR 165% 1P Reserves (mmboe) 500 53 414 400 348 (56) 32 37 300 Acquisitions/ Exploration/ Divestments Production Revisions Appr
Slide 15: Disclaimer & Important Notice
Disclaimer & Important Notice This presentation contains forward looking statements that are subjectsubject to risk factors associated with the oil and gas industry. It is believed believed that the expectations reflected in these statements are reasonable, but they they may be affected by a range o