The following scribble is in addition to the recent update given to the ASX the other day:- 1. Drilling this calendar year. Five holes committed and hoping subject to rig availability for two more.
The first is Baystone (75%) in April ,target 2mmbls in situ, follows ontrend from Reg Sprigg West discovery. Then Acrasia #4 in June/July where they are now concentrating on ramping the daily rate back to 1000bls a day(just completed a workover on Acrasia#1, doing Acrasia#3 at present). ACrasia #4 could add another 500bbls a day to this figure. August/September sees Dalray and Padulla in PEL113 (oil and gas plays but forgot to ask target size) and the first of the dedicated gas plays-Brew, also in PEL 113.
2. Subject to rain, they are on track to produce 750,000 bbls plus this financial year, with a target of 1mmbbls next year.
3. Most of the hedge disappears 30th June . Also by then cash in bank should be north of $2m net of debt.As usual they are writing dud holes off completely-unlike its peer group!
4. Was contemplating farm out of PEL 102. Following review of data on Mentone, now reluctant to do so. This would be one of the extra holes subject to rig availability. (Haricot gas prospect in PEL90 is the other).
5 The start of the gas play! Brew is a substantial gas target (20-40BCF?) that is in close proximity to the Epic pipeline. Could be tied in quite easily with minimal stripping capex/low opex penalty. Sales into this system would attract a significant premium to the price offerred by Santos elsewhere-the 'purchaser of last resort"? Is also attractive given the probability on success for around 100bbls a day in condensate as a bonus!
Have other financial and technical details, but that will do for now.(The MD has learnt to dance pretty quickly after 12 months of broker presentations!LOL)
Cheers,TAS
STU Price at posting:
0.0¢ Sentiment: None Disclosure: Held
