Australia's Santos Ltd. announced a 25-well, high-impact exploration program for 2005. The company will invest $153 million testing prospects within its expanding domestic and international exploration portfolio – up 21% from the $126 million spent on exploration in 2004.
The main focus of the 2005 program is oil, with most of the activity planned for the Kutei and East Java basins offshore Indonesia, the Gulf of Suez in Egypt, the Bonaparte basin in the Timor Sea, and the Carnarvon basin offshore Western Australia.
"The 2005 program reflects the increasing materiality of our exploration portfolio and continues Santos' emphasis on more globally focused exploration as an important part of our growth strategy," says John Ellice-Flint, Santos' managing director.
"We are commencing 2005 with a very high activity level in the first quarter," he says.
Some key wells to be drilled in 1Q include three deepwater wells in the Kutei basin, one of which has already spudded. Santos will also drill the Agung oil prospect in the North Bali 1 PSC, which will spud within days, as well as two wells in the Gulf of Suez, and the Cougar prospect in the Gulf of Mexico.
Throughout the remainder of the year, Santos will drill in the Gulf of Suez, the Kutei basin, East Java, the Otway basin, the Bonaparte basin, and the Carnarvon basin.
Santos has also begun an extensive 3D seismic acquisition program in the Sampang and Madura offshore production-sharing contracts in East Java.
Because the exploration portfolio is constantly being optimized, Santos expects the program to vary as a result of drilling outcomes and as new prospects mature.
1/27/05
