snto - Santos

Review of Performance
Exploration
Santos achieved some significant exploration successes in 1998.
1998 Exploration
A total of 67 wildcat and 14 appraisal wells were
drilled in 1998 for a cost of $180.7 million. The
program achieved an overall success rate of 54%
(52% on wildcats, 64% on appraisals). At the end of
the year 28 million boe of proved and probable
reserves had been booked. This figure excluded some
notable discoveries, namely John Brookes-1,
Mutineer-1 and Ewing Bank 994#1. The Caribou-1
appraisal of the Reindeer gas field was also excluded.
Further appraisal and development studies are
required on these resources. The annual finding cost
for the booked reserves was $6.52/boe. This figure
excludes the potential reserves associated with the
discoveries noted above, but includes the expenditure
1998 Exploration Results
Wells Drilled Successful Wells Success
Gas Oil Gas Oil Rate %
South Australia 32 2 20 0 59
Queensland 14 3 9 1 59
Offshore Australia 4 9 2 2 31
South East Asia 0 4 0 2 50
US 12 1 7 1 62
Total 62 19 38 6 54
incurred in undertaking the respective drilling.
Notwithstanding the 1998 result the five-year average
finding cost is $1.75/boe.
Exploration Strategy
Santos has maintained a consistent exploration
strategy over the last few years. Key aspects of the
strategy include:
■ Active exploration in established core areas.
■ Focused exploration in new areas, concentrating
in areas of known hydrocarbons.
■ Aggressive and cost effective application of
modern technology by skilled and motivated
professional staff working to a defined process.
■ Disciplined technical assessment of chance of
success, potential resource size and economic
outcome with a strong emphasis on review
and audit.
■ Active and rigorous management of the
Company’s exploration portfolio.
Testing John Brookes-1 in the Carnarvon Basin
14