Santos has enjoyed a successful third quarter, with record production and sales volumes, as well as its second highest quarterly sales revenue ever.
The company’s production was up 32 per cent on September 2018 and 7 per cent on the June quarter, with 19.8 million barrels of oil equivalent (mmboe).
Its sales revenue reached $1.030 billion, while the record sales volume of 25.2 mmboe is a 25 per cent improvement from September 2018.
Santos also generated $214 million in free cash flow for the quarter, bringing the total free cash flow for 2019 to $852 million.
The company had a successful assessment of its high-prospect oil and gas resource Dorado, offshore Western Australia, with well tests showing the field is capable of producing higher than expected flow rates.
The oil test rate was 11,100 barrels per day, which is one of the highest ever from a north west shelf appraisal well test.
“A highlight of the quarter was the successful appraisal of the Dorado field, which is one of the most exciting growth projects in our portfolio,” Santos managing director and chief executive officer Kevin Gallagher said.
“Following the strong well test results, we are targeting front end engineering design (FEED) entry in early 2020.”
Santos also had a new acquisition, ConocoPhillips, delivering shareholders operatorship and control of long-life, low cost natural gas assets and liquified natural gas infrastructure in northern Australia.
“This value accretive acquisition will also further reduce our free cash flow breakeven oil price and strengthen our offshore operating and development expertise to drive growth across northern and Western Australia, where we have a significant existing resource position,” Gallagher said.