Santos Limited · ASX:STO

Santos — Corporate Update (February 2012)

14 slides from Santos's corporate update, Feb 28, 2012

  1. Slide 1: Well Design and Construction

    Well Design and Construction Presented by Rohan Richardson, to the Santos Community Committee – Upper Hunter, Tuesday, February 28, 2012. 1

  2. Slide 2: A history of high standards

    A history of high standards November 1959  Santos is an Australian company which has been a leader in the oil and gas industry for more than 50 years.  Santos is a leader in onshore, offshore and CSG. 2

  3. Slide 3: A history of high standards

    A history of high standards  Offshore operations are considered more complex with - higher pressures, - higher temperatures and - greater depths drilled.  The same well design principles applied to offshore operations are used across the company, specific to the well type and properties. 3

  4. Slide 4: A history of high standards

    A history of high standards  CSG operations are considered less complex with: - lower pressures, - lower temperatures and - shallower depths.  The CSG conditions may be less complex, however our standards remain high. 4

  5. Slide 5: A history of high standards

    A history of high standards  Our standards meet or exceed the Australian regulatory requirements, governed by each state  Drilling designs are submitted to the state government regulators in the form of a drilling programme prior to commencing a well  We comply with industry standards and best pr

  6. Slide 6: Well Definition

    Well Definition  Core hole: is drilled to evaluate the coal, usually by taking a sample of coal, known as a core sample, from a coal seam.  Pilot well: is used to test the commercial viability of producing gas from a coal seam. It is a well that normally produces water then gas from the coal seam.

  7. Slide 7: Water Bore Gas Well Comparison

    Water Bore Gas Well Comparison Local bores in the Bunnan area range from 7 m to approximately 150 m Santos Core hole drilled near Bunnan Local water bore drilled near Bunnan 444 mm hole drilled to 10 m 400 mm hole drilled to 15 m Aquifer 355 mm conductor pipe – 390 mm pipe – cement to cement to surf

  8. Slide 8: Geology – Expected geology at Bunnan

    Geology – Expected geology at Bunnan Surface Casing @ ~230 m. Intermediate Casing @ ~830 m. Target Coal @ ~870 m. TD @ ~1089 m. 8

  9. Slide 9: Pilot Well Design & Construction

    Pilot Well Design & Construction Well Schematic 355 mm steel conductor is cemented into Ground level competent rock, 10 m below ground level - isolates loose / unconsolidated rock near surface Shallow Aquifer 311 mm hole drilled through sandstone aquifers, drilling fluid circulates down through dril

  10. Slide 10: Pilot Well Design & Construction

    Pilot Well Design & Construction Well Schematic 244 mm steel casing is run into the hole Ground level - This forms a barrier over shallow aquifers Cement is pumped down the inside and then Shallow Aquifer up around the outside of the casing - Cement used is designed for the well conditions and once

  11. Slide 11: Pilot Well Design & Construction

    Pilot Well Design & Construction Well Schematic Ground level 216 mm diameter hole is drilled through a series of impermeable rock layers before finishing above the targeted coal. Shallow Aquifer These layers exist at various depths and provide natural seals that stop water seeping down to deeper str

  12. Slide 12: Well Design & Construction

    Well Design & Construction Well Schematic 178 mm diameter steel casing is run into Ground level the hole - This forms a second barrier to isolate the well bore from the shallow aquifers Shallow Aquifer Cement is pumped down inside and then up around the outside of the casing 156 mm hole is drilled t

  13. Slide 13: Plugging and abandoning a well

    Plugging and abandoning a well • An abandonment includes filling the entire wellbore from bottom to surface with cement in cement „plug‟ stages. • All open hole „plugs‟ are left to set and tagged to confirm placement before the next one is pumped. • Once a cement „plug‟ top is inside casing, it is l

  14. Slide 14: Rehabilitating the Site

    Rehabilitating the Site After this process has been completed the wellhead is cut off 1.5 m below ground level, an abandonment marker welded to the casing and the cellar pulled and site rehabilitated 14

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