STOSY: Dow Jones Newswires -- April 30, 1998
Santos/Gas Discovery: Claims Best Area Discovery Since '94
ADELAIDE (Dow Jones)--Australia's Santos Ltd., (STOSY) an oil and
gas concern, said Friday it has discovered a gas field in South Australia
state.
Managing Director Ross Adler said that the latest discovery 'could be the
best gas discovery in South Australia since 1994.'
'A preliminary estimate indicates that the well has...approximately 30 billion
cubic feet of reserves with potential upside of 50 billion cubic feet reserves,'
Adler noted. 'This is the equivalent to approximately six months supply of
South Australian gas demand.'
The company said the gas flow at the new well, Cabernet 1, has reached
12.2 million cubic feet a day.
Cabernet 1 is 12 kilometers East of the Garanjanie Field and 44 kilometers
South of the Moomba gas plant.
Santos is the controlling joint venture partner with a 59.8% interest in the
well. The other partners include Delhi Petroleum (20.2%), Boral Energy
Resources Ltd. (13.2%), Crusader Resources (4.7%) and Basin Oil
(2.1%).
Separately, Santos' Chairman John Uhrig said at the company annual
general meeting in Adelaide: 'The financial results in the first half will be
somewhat lower compared with 1997.'
Santos reported a first half net profit of A$102.3 million to June 30, 1997.
Uhrig said one of the main factors contibuting to the lower result would be
oil and LNG prices that are likely to remain weaker in this year than they
were in 1997.
He anticipates that during the second and third quarters of 1988 'a number
of development projects' should come on line.
'Allowing for these offsetting factors, the financial results for the full year are
expected to be broadly comparable to those in 1997,' Uhrig noted.
The company posted a net profit of A$206.2 million for its fiscal year
ended Dec. 31, 1997.
Around 0325 shares in Santos were up 17 cents, or 3.1%, at A$5.70;
while the All Ordinaries index was 1.3% higher at 2798.0 points. |
