Santos Limited Completes Drilling At Bayu-Undan Gas Field Ahead Of Schedule

  • Dec 03, 2018 AEDT
  • Team Kalkine
Santos Limited Completes Drilling At Bayu-Undan Gas Field Ahead Of Schedule

Santos Limited (ASX: STO) today flagged the completion of Bayu Undan infill program three months ahead of schedule and at much lower than expected cost. The news sent the Santos shares to take a leap of 8.696% or $0.480 to last trade at $6.00 on 3 December 2018.

The company announced the return of first gas from the drilling of final and third well at Bayu Undan gas condensate field, located in the Timor Sea. The successful completion of company’s infill program at Bayu-Undan underscores the increase in Santos’ offshore well capacity and its potential to deliver higher liquids production.  

Kevin Gallagher of Santos, Managing Director and Chief Executive Officer stated the drilling campaign at Bayu-Undan has returned strong subsurface results and has marked the completion of entire project around 40% below the planned budget. He added it outlines the advancement of final well three months ahead of schedule.

The drilling work at Bayu commenced after the company undertook the final investment decision in January 2017. As a part of long-term development plan, the infill program aimed at the drilling of two wells and one subsea well connecting with existing offshore infrastructure. Noble Tom Prosser rig reportedly utilized for the drilling of wells, moreover Santos has contracted the rigs to be used in the 2019 drilling program including the appraisal of the recent Dorado oil discovery offshore Western Australia.

Santos holds 11.5% interest in Bayu Undan joint venture and the Darwin LNG plant in the Northern Territory, both operated by ConocoPhillips Australia. Moreover, the operator ConocoPhillips holds 56.94% interest in the project which is within the Joint Petroleum Development Area, circa 500 km north-west of Darwin. Through the 500 km subsea pipeline, the gas is sent from the Bayu-Undan field to the plant at Wickham Point which is then converted into LNG and shipped to Japan, Tokyo Gas and a joint venture between Tokyo Electric and Chubu Electric (JERA).

Moreover, the final investment decision for Barossa joint venture is scheduled for late 2019. The company reported that Barossa gas field project, 25% owned by Santos is currently in front end engineering and design. It is a leading candidate to backfill Darwin LNG when Bayu Undan production ceases.

In today’s trading session, Santos shares last traded at a Price to Earning ratio of 33.840 x with market capitalization of $11.5 million as at 3 December 2018. The stock has undergone a positive performance change of 8.66% in 12 months but in the past three months Santos’ stock price has slipped by 18.46%.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK