Santos Limited · ASX:STO
Santos — Investor Presentation (May 2007)
16 slides from Santos's investor presentation, May 10, 2007
Slide 1: ASX Company Announcement: Asian Investor Presentation
Santos Ltd A.B.N. 80 007 550 923 Ground Floor Santos Centre 60 Flinders Street Adelaide SA 5000 GPO Box 2455 Adelaide SA 5001 Telephone: 08 8116 5000 Facsimile: 08 8116 5623 To: Company Announcements Office ASX Ltd From: Company Secretary Date: 10 May 2007 Subject: Asian Investor Presentation Please
Slide 2: Santos - Key Statistics
Santos Limited Investor Presentation Singapore / Hong Kong, May 2007 1. Santos - Key Statistics Australian based E&P company operating internationally • Commenced operations in 1954 • Market cap ~ US$6.6 billion 2006 Production Total 61.0 mmboe • 1,600 employees Crude oil • 2P reserves of 819 mmboe
Slide 3: Review of Shareholding Restriction; 2006 - Record Results
Review of Shareholding Restriction • 15% shareholding restriction in place since 1979 • Government decision to review following formal request • Important for realising Santos’ full growth potential • Levels the playing field • Original intent of Act no longer applies • Commitment to South Australia
Slide 4: A Portfolio of Growth Businesses With Significant Contingent Resources
A Portfolio of Growth Businesses Kyrgyzstan Asian Egypt Growth India Vietnam Indonesia LNG PNG Western Australia Australian Oil and Eastern Legend Gas Australian Exploration Cooper Gas Basin Production Oil 5. With Significant Contingent Resources Gas Indonesia/Vietnam 100.4 mmboe Oil / Condensate PN
Slide 5: Cooper Basin Oil; Cooper Basin Oil - 2006 Program
Cooper Basin Oil High value opportunity Santos competitive advantage Largest onshore Australian Oil prices higher for longer oil acreage position: >30,000 km2 Utilising modern rigs and Over 700 mmbbl original proven technology to increase oil in place recovery factors Unique capabilities, Ability to
Slide 6: Cooper Basin Oil - 2007 Plan and Production Outlook
Cooper Basin Oil - 2007 Plan ~ 190 wells planned Queensland South Australia ATP 299 65 - 75 wells Greater SA to drill 25 - 30 wells to drill Ballera Jackson Jackson / Naccowlah Moomba 45 - 50 wells to drill JALBU / PEL 114 Legend 45 - 55 wells to drill Santos Acreage Oil Pipeline Oil Field Gas Pipel
Slide 7: Eastern Australian Gas; EA Gas - Hub and Spoke Strategy
Eastern Australian Gas Strong market growth Santos is well positioned Gas demand growing Large uncontracted gas strongly, PNG gas project position, demonstrated suspended contracting capability Gas is a low carbon Increasing gas demand emission fuel and price CSG emerging to fill Established leading
Slide 8: EA Gas - Supply and Demand; Western Australian Oil and Gas
EA Gas – Supply and Demand Significant uncontracted demand to place Santos’ 1P, 2P & 3P reserves 1,400 1,200 1,000 Total Market Demand* bcf/yr 800 600 Remaining Uncontracted Total Contracted Market 3P - Santos Share 400 Remaining Uncontracted Remaining Uncontracted 2P - Santos Share 200 1P - Santos
Slide 9: WA Oil & Gas - Exploration & Appraisal; LNG Projects
WA Oil & Gas – Exploration & Appraisal Short cycle time, near field oil opportunities • John Brookes ramp-up Mutineer Fletcher Exeter - 200 bcf uncontracted Totem 2P reserve Hurricane Legendre • Reindeer follow up Reindeer opportunity Western John Brookes Australia - 300 - 500 bcf resource • 2007 we
Slide 10: LNG Projects - PNG; LNG Projects - Darwin
LNG Projects - PNG LNG the focus for PNG gas resources Hides • ExxonMobil progressing pre-FEED Papua New Guinea studies of LNG development PRL 5 PDL 1 SE Gobe - Based on the Hides field Proposed - Santos 17% interest Elevala PDL 3 LNG Facility PRL 9 - 5 to 6.5 mtpa LNG plant - First cargos target 20
Slide 11: Asian Growth; Asian Growth - Vietnam
Asian Growth High growth potential Santos has a quality portfolio Focussed, long term Strategy focus on Asia, vision required for success USA business for sale Development, production Maleo gas project online, and exploration in Oyong startup 2Q 2007, Kutei Indonesia 2006 new country entry Blackbird
Slide 12: Asian Growth - Indonesia; Sidoarjo Mudflow Incident
Asian Growth - Indonesia Core business positioned for growth • Oyong Q2 / Q3 2007 start-up 0 250 kilometres • Wortel gas discovery Kalimantan Kutei - Development planning Basin underway • Jeruk development studies ongoing Wortel • Kutei Basin Oyong East Java Basin - Exploration/appraisal wells subje
Slide 13: Production Outlook; Santos is Relatively Undervalued
Production Outlook Production guidance – 59 to 61 mmboe in 2007 and 2008 100 90 80 70 60 50 40 30 20 Actual Outlook 10 0 2005 2007 2009 2011 2013 2015 2017 2019 EA Gas Cooper Oil WA O&G International LNG Exploration 23. Santos is Relatively Undervalued EV/BOE of Production 800 700 600 US$m / kBoe/d
Slide 14: Santos is Relatively Undervalued - EV/BOE Contingent Resources and 2P Reserves
26. 25. US$ / Boe Contingent Resources US$ / BOE 2P Reserves 0 0 10 20 30 40 50 60 70 80 20 40 60 80 100 120 140 160 Bu Ha rr rd en C y An Ca air lv n zo a n In lley da Se B go ric Gu urr Pr a lfs en em an DN ie Se ds O r ri AS Tr An ca a n zo A sg n Tu Em lob llo er e w al Hu d Ar sk Ro c y c Be Ca
Slide 15: Contingent Resources; Summary
Santos is Relatively Undervalued Contingent Resources 3,500 3,000 2,500 2,000 Mmboe 1,500 1,000 500 0 an ch en Hu s DN a g e He e r a m a Gr n by ch r Sa e Pr ro be y ko Ca x n w A ie o ric n sk id ir da zo llo AS d a no rr ar an Sa Da nt lo Ni em Ca ds an Be Se rit An Ad Bu Tu sg Se O oo il la W O
Slide 16: Disclaimer & Important Notice
Disclaimer & Important Notice This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which cou