Ann: June 2015 Quarterly Report Conference Call, page-5

Less gas available to Santos now that Longtom production is going to be put on hold.


The Kerry Stokes-controlled Seven Group Holdings has stopped production at the Longtom gasfield in Bass Strait after another major electrical fault, and indefinitely deferred $190 million of drilling and other field investment to conserve capital and chase higher gas prices and lower drill costs.

The Longtom field, acquired in the controversial $200m takeover of Nexus Energy last year, was Seven Group’s only producing Australian gas asset.

It is understood the Longtom-5 production well, which was planned for the middle of this year, and a Longtom-4 well improvement program are not going ahead for now, meaning a sales agreement to supply gas until 2018 to the Santos-run Orbost gas plant has to be renegotiated.