Santos to meet Production Guidance for 2009

Santos (STO), the Australia based oil and gas producer has claimed that it is currently in a good position to meet its production guidance for calendar 2009. The announcement came following a raise in the company’s third quarter output where it lifted the figures by 5 percent. Production of oil has increased to 13.9 million barrels equivalent in the first three months till September 30 where in the same quarter a year earlier, the production was 13.2 mmboe. The September quarter saw a 4 percent rise in production in comparison with the June quarter when production was 13.4 mmboe. It is to be mentioned that Santos sold 40 percent of its ownership of the Queensland coal-seam gas business to Malaysia based Petroliam Nasional in order to develop an LNG venture. Santos has established a floating LNG venture with GDF Suez and owns shares in Exxon Mobil's gas project in Papua New Guinea.

David Knox, the chief executive of Santos has claimed that the company’s performance was very impressive for the September quarter which will lead the company to hit its guidance to go for a full year production within the range of 53 mmboe and 56 mmboe. The company is currently seeing a continuous development of its liquid natural gas (LNG) portfolio with positive performance of the PNG and Queensland-based Gladstone LNG projects, he added.

Santos managed to generate $557 million worth of revenue in the third quarter from oil which is 15 percent higher in comparison with the revenue of the June Quarter. However, the company revenue dropped 24 percent over the year after it forecasted a 44 percent decrease in the average realised oil price from 146.42c per barrel to 82.52c per barrel, due to a fall of price in the global market. Santos shares were closed down 9c at $15.66.