Santos Limited · ASX:STO

Santos — Technical Presentation (March 2010)

21 slides from Santos's technical presentation, Mar 24, 2010

  1. Slide 1: Gunnedah Basin – Drilling

    Insert an image in this area if required Gunnedah Basin – Drilling Jordan Bunning – Team Leader, Drilling CSG Spring Ridge & Gunnedah 1 23 & 24 March 2010

  2. Slide 2: Typical core hole site layout

    Typical core hole site layout 2

  3. Slide 3: Rehabilitation

    Rehabilitation BEFORE AFTER 3

  4. Slide 4: Core hole design - principles

    Core hole design - principles Each core hole has a unique, site-specific design Although unique each core- hole is designed to specific standards and regulations Santos are one of very few operators in NSW who use conventional industry practices throughout the design and construction of its CSG core

  5. Slide 5: Core hole construction – surface casing

    Core hole construction – surface casing Santos uses a design that isolates surface aquifers behind cemented steel casing The cement is placed by pumping it; - Down the inside of the casing - Around the bottom of the casing - Then back up between the casing and rock We then pressure test the casing t

  6. Slide 6: Core hole construction – intermediate casing

    Core hole construction – intermediate casing On some coreholes (due to the depth of the coals) we install an intermediate casing This steel casing is cemented in the same manner as the surface casing This steel casing is also pressure tested to ensure seal 6

  7. Slide 7: Core hole schematic

    Core hole schematic Plain sandstone/ Shallow sandy/grainy Aquifer Rock Coal Interburden Seam coal stripes Gas Targets (1) Rock Coal Interburden Seam coal stripes Gas Targets (2) 7

  8. Slide 8: Core hole evaluation / plug & abandonment

    Core hole evaluation / plug & abandonment Once drilling is completed the corehole is logged, tested and then plugged and abandoned The hole is sealed completely from bottom to surface with cement 8

  9. Slide 9: Drill fluid

    Drill fluid Main objectives - Hold back formation fluids - Increase hole stability - Cool and lubricate the drill bit - Remove cuttings from the well bore 9

  10. Slide 10: Drilling additives - salts

    Drilling additives - salts KCL used as: - Weighting agent - Control swelling clays 10

  11. Slide 11: Drilling additives - polymers

    Drilling additives - polymers Polymer - Assist drill fluid to carry cuttings to surface - Used to increase the viscosity (thickens) of the drill fluid - Biodegradable 11

  12. Slide 12: Drilling additives – Loss Circulation Materials (LCM)

    Drilling additives – Loss Circulation Materials (LCM) If loss detected, LCM fed into the hole with the drilling fluid. Fracseal - 100% cellulose, looks like sawdust Particles from LCM additive block pores in rock 12

  13. Slide 13: Drilling fluids - disposal

    Drilling fluids - disposal Drilling fluids are pumped out of the sump and taken to licensed disposal facility Liners are reused when possible or disposed of to licensed disposal facility Cuttings removed to licensed disposal facility (since August 2009) 13

  14. Slide 14: Core holes and pilot wells

    Core holes and pilot wells SIMILARITIES DIFFERENCES - Same core hole construction - Core holes do not produce principles water or gas - Have well control equipment - Pilots produce water and as part of the design possibly gas - Core hole completed and rehabilitated within months - Pilot wells can pr

  15. Slide 15: Pilot surface facilities

    Pilot surface facilities 15

  16. Slide 16: Potential pilot well design

    Potential pilot well design Coal # 1 Coal # 2 Coal # 3 16

  17. Slide 17: Pilot test – well layout

    Pilot test – well layout Well name 5 Well name 4 Well name 2 Well name 3 17

  18. Slide 18: Potential completion design

    Potential completion design Well # 2 Well # 3 Well # 4 Well # 5 Coal # 1 Coal # 2 Coal # 3 18

  19. Slide 19: Fracture stimulation (fraccing)

    Fracture stimulation (fraccing) Accelerates dewatering Helps water and gas to flow more easily by: - Making numerous fine cracks in the target coal seam - Holding the cracks open with grains of fine sand 19

  20. Slide 20: Frac fluids

    Frac fluids Frac fluids are made of: - Sugar-based polymer (guar gum) - Oxidants and enzymes - Formation water Frac fluid carries fine beach sand into the target coal seam at high pressure. These polymers, oxidants and enzymes are also found in everyday foodstuffs eg coffee, ordinary sugar 20

  21. Slide 21: Questions

    WY) Cc Oo J Y) Oo =) CO 21

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