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INVESTOR PRESENTATION – Santos Limited

Santos Limited · Jul 17, 2014 · 36 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. INVESTOR PRESENTATION – Santos Limited – slide 1
    Narrabri Gas Project: the responsible development of NSWs natural gas resources James Baulderstone, Vice President Eastern Australia Glenn Toogood, Water Management Leader 17 July 2014
  2. INVESTOR PRESENTATION – Santos Limited – slide 2
    Natural gas Moving to a cleaner energy economy James Baulderstone, Vice President Eastern Australia To be updated
  3. INVESTOR PRESENTATION – Santos Limited – slide 3
    Strategy Our vision is to be a leading energy company in Australia and Asia Growing our strong domestic base business Bay of Bengal Phu Khanh Nam Con Son West Natuna Delivering our South Sumatra Papuan transformational…
  4. INVESTOR PRESENTATION – Santos Limited – slide 4
    Moving to a cleaner Natural gas is ideally placed to underpin the transition energy economy to a low carbon economy Decarbonising the energy US shale gas production vs sector: carbon emissions 1.3 billion people in the world are…
  5. INVESTOR PRESENTATION – Santos Limited – slide 5
    Eastern Australia natural More than 87% of eastern Australias natural gas gas reserves reserves1 are held in coal seams Australia possesses abundant gas Australias natural gas reserves1 resources to meet both domestic and export…
  6. INVESTOR PRESENTATION – Santos Limited – slide 6
    Eastern Australia gas Additional supply is required to meet increased market transformation demand Eastern Australia gas demand (PJ) 2,500 2,000 APLNG 1,500 x3 GLNG QCLNG 1,000 Power Gen 500 Retail, C&I 0 2013 2015…
  7. INVESTOR PRESENTATION – Santos Limited – slide 7
    NSW gas supply tight NSW natural gas critical to eastern Australias energy from 2015 security NSW & ACT Demand and PJ Contracted Supply Eastern Australia gas demand set to triple as 200 three major LNG plants open to global markets…
  8. INVESTOR PRESENTATION – Santos Limited – slide 8
    The stakes are high Restricting coal seam gas development will adversely impact energy supply, affecting everyday Australians Over 5 million homes and businesses use natural gas To be updated 45% of manufacturing relies on natural…
  9. INVESTOR PRESENTATION – Santos Limited – slide 9
    Narrabri Gas Project James Baulderstone, Vice President Eastern Australia
  10. INVESTOR PRESENTATION – Santos Limited – slide 10
    Narrabri Gas Project Santos is committed to safe and responsible operations, respectful engagement and supporting regional communities Delivering Supply energy Benefiting natural gas safely with regional to NSW minimal…
  11. INVESTOR PRESENTATION – Santos Limited – slide 11
    Narrabri Gas Project The Narrabri Gas Project area is located within the Petroleum Exploration Lease (PEL) 238 Santos CSG acreage, NSW Narrabri Gas Project area, NSW 12 NARRABRI GAS PROJECT - JULY 2014
  12. INVESTOR PRESENTATION – Santos Limited – slide 12
    Benefiting regional We aim to become a valued and respected member of communities the local communities which host our activities 1,200 jobs during construction Flow on benefits via supply chain revenues, local purchasing and…
  13. INVESTOR PRESENTATION – Santos Limited – slide 13
    A tale of two towns The natural gas industry is revitalising regional communities Population growth Local economy (m) Unemployment rate (%) +9% -6% 1,864 5.4 5.5 12,383 13,562 13,078 12,303 2.8 850 2.2 730 590 Roma area…
  14. INVESTOR PRESENTATION – Santos Limited – slide 14
    Respectful engagement We respect and proactively engage with landholders and native title applicants Work with the Forestry Corporation of NSW in the Pilliga Project area avoids Strategic Agricultural Land to the maximum extent…
  15. INVESTOR PRESENTATION – Santos Limited – slide 15
    Protecting biodiversity We recognise the unique environment of the Pilliga and are committed to minimising our ecological footprint Ongoing flora and fauna studies Since 2002, 25 ecological surveys totalling 3,500 person hours…
  16. INVESTOR PRESENTATION – Santos Limited – slide 16
    Water: baselines, monitoring and handling Glenn Toogood, Water Management Leader
  17. INVESTOR PRESENTATION – Santos Limited – slide 17
    A history of drilling Over 150 petroleum wells drilled in the past 70 years in the Project area and 90 CSG wells in the past 10 years The Namoi water catchment: 4,200,000 hectares 18,500 registered bores Santos Narrabri Gas…
  18. INVESTOR PRESENTATION – Santos Limited – slide 18
    Hydrogeological Targeted coal seams are isolated from the Great schematic Artesian Basin and alluvial groundwater systems by 200 300m of highly impermeable rock Great Artesian Basin Pilliga sandstone Aquitard highly…
  19. INVESTOR PRESENTATION – Santos Limited – slide 19
    Surface and groundwater The gathering of baseline data underpins our surface monitoring and groundwater modelling and monitoring Baseline data is collected from: 123 NSW Office of Water monitoring bores 17 new Santos aquifer…
  20. INVESTOR PRESENTATION – Santos Limited – slide 20
    Independent analysis Establishing baseline data - expert research, monitoring and modelling Water samples are: Collected by independent experts Securely transported to a NATA (National Association of Testing Authorities)…
  21. INVESTOR PRESENTATION – Santos Limited – slide 21
    Namoi Catchment Water No notable impact to regions groundwater sources Study Namoi Catchment Water Study: 4.5m study conducted in four stages over 2.5 years modelled a wide range of mining and CSG scenarios over the next 90…
  22. INVESTOR PRESENTATION – Santos Limited – slide 22
    Santos Regional Animation of basin hydrogeological sequence Groundwater Model 23 NARRABRI GAS PROJECT - JULY 2014
  23. INVESTOR PRESENTATION – Santos Limited – slide 23
    Santos Regional Robust, peer reviewed science underpins future Groundwater Model Project development The Santos Regional Ground water Model: Assesses the effect of depressurising / dewatering the coal seams on overlying groundwater…
  24. INVESTOR PRESENTATION – Santos Limited – slide 24
    Santos water portal Santos online water portal reflects our strong commitment to transparent operations Our online water portal provides www.santoswaterportal.com.au community access to: Water testing results from over 100…
  25. INVESTOR PRESENTATION – Santos Limited – slide 25
    Produced water Careful management and beneficial reuse of the water produced is a key area of focus Natural gas trapped in coal is adsorbed onto the coal surface in cleats or micropores and held in place by reservoir and water…
  26. INVESTOR PRESENTATION – Santos Limited – slide 26
    Produced water We prioritise water protection, preservation and productive reuse Water extracted must be licenced by: Water use in Namoi Catchment Area The NSW Government through its water sharing plans, and Agricultural & Santos…
  27. INVESTOR PRESENTATION – Santos Limited – slide 27
    Produced water facility State of the art Leewood produced water facility part way under construction Facility located outside the Pilliga on Santos owned land Replaces Bibblewindi (Eastern Star Gas) water storage and treatment…
  28. INVESTOR PRESENTATION – Santos Limited – slide 28
    Drilling with care James Baulderstone, Vice President Eastern Australia Drilling rig, Narrabri Gas Project
  29. INVESTOR PRESENTATION – Santos Limited – slide 29
    Drilling with care Santos draws on more than 50 years expertise of safe and responsible drilling of gas wells All wells are: Based on the Santos Drilling Operations Manual and are written, reviewed and approved by experienced…
  30. INVESTOR PRESENTATION – Santos Limited – slide 30
    Drilling with care Local geology and Santos best practice well design ensure natural gas is produced safely and groundwater is protected Steel conductor passes through topsoil into solid sandstone. It is drilled first and cemented…
  31. INVESTOR PRESENTATION – Santos Limited – slide 31
    Drilling with care The surface footprint of CSG extraction is small and temporary in nature Footprint of well during the construction phase: one hectare Footprint of well during the production phase: 25m x 25m, or 0.07ha for the…
  32. INVESTOR PRESENTATION – Santos Limited – slide 32
    Drilling with care Plugging and abandonment The entire wellbore is filled from bottom to surface with specially formulated oil-field grade cement in plug stages Individual cement plugs are limited to 200m in length and are Corehole…
  33. INVESTOR PRESENTATION – Santos Limited – slide 33
    Drilling with care Example of site rehabilitation at former well site The wellhead is cut off 1.5m below ground level Sites are fully rehabilitated back to original use including revegetation Brawboy, NSW Brawboy, NSW Brawboy,…
  34. INVESTOR PRESENTATION – Santos Limited – slide 34
    Santos publications & Extensive research will be made available to the public reporting across the life of the Project www.santoswaterportal.com.au www.santos.com/nsw 35 NARRABRI GAS PROJECT - JULY 2014
  35. INVESTOR PRESENTATION – Santos Limited – slide 35
    Conclusion Santos is committed to the safe and responsible development of NSWs natural gas resources Eastern Over 87% of eastern Australias 2P Reserves are held in coal seams Australias New gas supplies are needed to meet demand…
  36. INVESTOR PRESENTATION – Santos Limited – slide 36
    Santos Contact information Head Office Adelaide Andrew Nairn Ground Floor, Santos Centre Group Executive Investor Relations 60 Flinders Street Direct: + 61 8 8116 5314 Adelaide, South Australia 5000 Email: andrew.nairnsantos.com…

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