Embed Size (px)
Citation preview
1.
2007 Interim Results2007 Interim ResultsJohn ElliceJohn Ellice--Flint Flint -- Chief Executive OfficerChief Executive Officer
Peter Wasow Peter Wasow -- Chief Financial OfficerChief Financial Officer
23 August 200723 August 2007
2.
WebcastWebcast AgendaAgenda
Operational and financial highlightsOperational and financial highlights
Financial performance Financial performance
Strategic value drivers and outlookStrategic value drivers and outlook
Cooper Basin oilCooper Basin oil
Eastern Australian gasEastern Australian gas
Western Australian oil and gasWestern Australian oil and gas
LNG projectsLNG projects
Asian growthAsian growth
John ElliceJohn Ellice--FlintFlint
CEO & Managing DirectorCEO & Managing Director
3.
0.00
2.00
4.00
6.00
8.00
2004
2005
2006
2007
A$
/ b
bl
0100200300400500
20042005
20062007
A$
m
0
10
20
30
40
20052006
2007
mm
bo
e
0
500
1000
1500
2005
2006
2007
A$
m
$1,215m 7%
Sales Revenue
Solid Operating PerformanceSolid Operating Performance
Production
Production Costs/bbl
EBITDAX
6% pa(2)21% pa(2)
0
500
1000
1500
2005
2006
2007
A$
m
27% pa(2)
30.1 mmboe 5%
6% pa(2)
$7.01/ bbl 8%
$964m 4%
NPATReported $262m 29%
Underlying $305m 25%
40% pa(2)
(1) 2004 data normalised to remove impact of Moomba incident(2) 3 year compound annual growth rate (CAGR)
2004
(1)
2004
(1)
2004
(1)
4.
0
5
10
15
20
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
Safety PerformanceSafety Performance
Injury frequency has decreasedInjury frequency has decreased
TR
CF
R
TRCFR = Total Recordable Case Frequency Rate
= Number of recordable injuries per million man hours worked
5.
Contingent resource conversion
Delivering ValueDelivering Value
Consistently meeting Consistently meeting
guidanceguidance
Cost ControlCost Control
PNG LNG pre FEED studiesPNG LNG pre FEED studiesPNG LNG pre FEED studies
Gladstone LNG proposalGladstone LNG proposalGladstone LNG proposal
Timor Bonaparte LNG AppraisalTimor Bonaparte LNG AppraisalTimor Bonaparte LNG Appraisal
WA gas price increase, Reindeer FEEDWA gas price increase, Reindeer FEEDWA gas price increase, Reindeer FEED
Cooper Oil Project and acreage extensionCooper Oil Project and acreage extensionCooper Oil Project and acreage extensionRecord productionRecord production
EA gas price increase, CSG expansionEA gas price increase, CSG expansionEA gas price increase, CSG expansion
Operational deliveryShifting to higher
margin
PORTFOLI O AND CAPI TAL MANAGEMENT
USA Sale
15% shareholder cap review
Share buy-back
Vietnam, India entries
GO
AL
SG
OA
LS
AC
HIE
VE
ME
NT
SA
CH
IEV
EM
EN
TS
6.
Operational and financial highlightsOperational and financial highlights
Financial performanceFinancial performance
Strategic value drivers and outlookStrategic value drivers and outlook
Cooper Basin oilCooper Basin oil
Eastern Australian gasEastern Australian gas
Western Australian oil and gasWestern Australian oil and gas
LNG projectsLNG projects
Asian growthAsian growth
WebcastWebcast AgendaAgenda Peter WasowPeter Wasow
Chief Financial OfficerChief Financial Officer
7.
0
50
100
150
200
250
300
350
400
450
500
1st Half 2006
Reported and Underlying ProfitReported and Underlying Profit
$m$m
* Significant I tems detailed in
Reference Slides
Underlying
1st Half 2006
Underlying
1st Half 2007
370
37 407 (108)
6 305 (43)
262
Significant
I tems*
Operating
I tems
Exploration
Expensed Significant
I tems*
2007 Profit
1st Half 2007
8.
0
5
10
15
20
25
30
35
1st Half 2006 1st Half 2007
ProductionProduction
mmboemmboe
30.128.7 0.7
1.20.5
(1.0)
Asia Field declineCasino Darwin
LNG
9.
700
800
900
1000
1100
1200
1300
1400
1st Half 2007
1,313
1,215
Mix
(68)
Liquids
Prices
1st Half 2006
(39)
Gas
Prices
9
ControllableMarket
SalesSales
$m$m
10.
0
20
40
60
80
100
120
140
160
180
200
220
Production CostsProduction Costs
$m$m
185
211(15)
New
field/ volume
(11)
1st Half 2007Production Cost
$7.01/boe
1st Half 2006
Production Cost
$6.47/boe
Costs
11.
10
15
20
25
30
35
1st Half 20071st Half 2006
Netback (Cash margin per boe sold)Netback (Cash margin per boe sold)
$/boe$/boe
0.43
33.67
31.28 (0.36)
(2.39)
A $
PricesGas
Prices
31.56
Controllable I tems
Mix
(0.20) 0.41
Costs Expln
Dedns
12.
0
100
200
300
400
500
600
700
800
900
1000
1100
EBITDAXEBITDAX
($m)($m)
1,00796444
(49)
MixPrices Other
(9) (29)
Bayu
Undan
1st Half 20071st Half 2006
13.
100
125
150
175
200
225
250
275
300
325
8
9
10
11
12
1H05 YE05 1H06 YE06 1H07
Depreciation, Depletion & AmortisationDepreciation, Depletion & Amortisation
$m$m
1st Half 2007
$10.42/boe
Volume Impacts
314
14(9)
New
Fields
5
USA
(34)(19)
Reserves
& FDC’s
YE06 Impacts
Other
Asset
Additions
271
1st Half 2006
$9.44/boe DDA $/ boe
14.
Operating Cash FlowOperating Cash Flow
0
100
200
300
400
500
600
700
Working
Capital
& Other
643
538111
Tax
Insurance
Proceeds
(43)(91)
EBITDAX
(82)
1st Half 2007 1st Half 2006
$m$m
15.
Capital ExpenditureCapital Expenditure
1st Half 2006 - $497m1st Half 2007 - $628m
EA Gas
Cooper Oil
WA Oil & Gas
LNG
Asia/ International
Corporate
374
174
12
147
277
195
192
426
388
156
148
180
40
86
22
93
373
42
138
96
29
104
55
22
Full Year 2007 - $1,338m Full Year 2006 - $1,306m
16.
Operational and financial highlightsOperational and financial highlights
Financial performance Financial performance
Strategic value drivers and outlookStrategic value drivers and outlook
Cooper Basin oilCooper Basin oil
Eastern Australian gasEastern Australian gas
Western Australian oil and gasWestern Australian oil and gas
LNG projectsLNG projects
Asian growthAsian growth
WebcastWebcast AgendaAgenda John ElliceJohn Ellice--FlintFlint
CEO & Managing DirectorCEO & Managing Director
17.
Portfolio Leveraging Core CompetenciesPortfolio Leveraging Core Competencies
Cooper Basin oil
Eastern Australian gas
Western Australian oil and gas
LNG projects
Asian growth
Cooper Basin oil
Eastern Australian gas
Western Australian oil and gas
LNG projects
Asian growth
Basin
Excellence
Basin
Excellence
Exploration
Expertise
Exploration
Expertise
Operating
Expertise
Operating
Expertise
Deep
Relationships
Deep
Relationships
Development
Skills
Development
Skills
Marketing
Approach
Marketing
Approach
18.
Cooper Basin Oil Cooper Basin Oil -- JourneyJourney
High value exploitation projectHigh value exploitation project
2004-05 2006-07 2008+
Proof of concept
Consolidate position
Optimise value extraction
Te
chn
olo
gy,
inn
ova
tio
n a
nd
de
live
ry
Acreage additionsAcreage additions
Rigs contractedRigs contracted
Cycle time optimisationCycle time optimisation
Pilot programsPilot programs
Start waterfloodStart waterflood
Infrastructure buildInfrastructure build
Geological/ geographical
diversification
Geological/ geographical
diversification
Tertiary recoveryTertiary recovery
19.
Cooper Basin Oil Cooper Basin Oil -- Enhanced RecoveryEnhanced Recovery
• Primary recovery
- Free flow or artificial lift
• Secondary recovery
- Water injection
- Initial results encouraging
• Tertiary recovery
- Chemical or supplemental
energy – CO2
• Initial results encouraging
Increased recovery through secondary / tertiary techniquesIncreased recovery through secondary / tertiary techniques
Oil
Pro
du
cti
on
(b
bls
/d
)
Mulberry 5 Production HistoryMulberry 5 Production History
0
200
400
600
Jan
05
Jul
05
Jan
06
Jul
06
Jan
07
Jul
07
Sta
rt W
ate
rIn
ject
ion
Primary Recovery Secondary Recovery
20.
Cooper Basin Oil Cooper Basin Oil –– 2007 Activity2007 Activity
• Initial focus in
Endeavour/Mulberry
- Tarbat-Jackson pipeline
completed
- Gas fired electric power
generation and reticulation
online
- Waterflood operational
• Risk diversification with
multiple fields and
geographical areas
• Focus shifting to Tirrawarra,
Naccowlah
25% increase in net acreage position since 200525% increase in net acreage position since 2005
Acreage GrowthAcreage Growth
South Australia
Legend
2005 Santos Permit Position
Santos Permit Acquisition Post 2005
Legend
2005 Santos Permit Position
Santos Permit Acquisition Post 2005
0 50
Kilometres
MoombaMoomba
Queensland
TirrawarraTirrawarra
Jackson/ Jackson/ NaccowlahNaccowlah
Endeavour/Endeavour/
MulberryMulberry
TarbatTarbat
BalleraBalleraJacksonJackson
21.
Cooper Basin Oil Cooper Basin Oil –– Production OutlookProduction Outlook
• Production capacity
increasing
• Production deferred
- Rain, wax and pipeline
issues
- Current impact
~ 3,600 bopd net
• ~ 14,000 bopd net to
Santos by end 2007
• 150 wells to be drilled
in 2007
Some production deferred to 2008Some production deferred to 2008
Production Capacity Production
2007 Production Capacity Build 2007 Production Capacity Build
(Santos Net)(Santos Net)
0
5,000
10,000
15,000
20,000
Jan07
Feb07
Mar07
Apr07
May07
Jun07
Jul07
Aug07
Sep07
Oct07
Nov07
Dec07
Pro
du
cti
on
Ca
pa
cit
y (
bo
pd
)
Forecast
22.
EA Gas EA Gas –– Strong positioningStrong positioning
• Increasing gas demand
- ‘Clean gas’ as energy substitute
• Quality asset portfolio
- Large resource base
- Hub & spoke strategy
- Low cost producer
• Leading CSG position
• Otway momentum growing
- Henry, Kipper projects
- Up to 5 exploration wells in 2008
• Gladstone LNG is an
international market gateway
Santos is competitively positionedSantos is competitively positioned in a transforming marketin a transforming market
BrisbaneBrisbane
SydneySydney
CanberraCanberra
MelbourneMelbourne
MoombaMoomba
BalleraBalleraWallumbillaWallumbilla
FairviewFairview
LongtomLongtomKipperKipper
GladstoneGladstone
MinervaMinervaCasinoCasino
OrbostOrbost
23.
0.00
2.00
4.00
6.00
8.00
10.00
Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07
$U
S/m
mBtu
EA Gas EA Gas -- LNG NetbackLNG Netback
(1) Source: Argus Monthly LNG (average of Japan, Taiwan & South Korea ex-ship
spot and contract prices)
(2) Netback determination uses Santos assumed range of costs for shipping and liquefaction
GLNG facilitates exposure to global LNG pricingGLNG facilitates exposure to global LNG pricing
Santos average
realised gas price
Domestic Australian
netback range (2)
Average Asian Average Asian
LNG Price LNG Price (1)(1)
24.
WA Oil & Gas WA Oil & Gas -- Mutineer Exeter OutlookMutineer Exeter Outlook
• High resolution 3D seismic acquired
- Basis for 2007 (Phase IV) & 2008
drilling
0
20,000
40,000
60,000
80,000
100,000
Ap
r-0
5
Jul-
05
Oct-
05
Jan
-06
Ap
r-0
6
Jul-
06
Oct-
06
Jan
-07
Ap
r-0
7
Jul-
07
Oct-
07
Jan
-08
Ap
r-0
8
Jul-
08
Oct-
08
Excellent performance following successful 2006 drilling campaign
Existing Producers
Phase IV Appraisal
Target
Future Appraisal
TargetExeter field
Mutineer field
Actual Forecast• Current production ~ 30,000
bopd
• Workovers to restore
~ 10,000 bopd
Phase I & I I WellsPhase I & I I Wells
Phase I I IPhase I I IWellsWells
Phase IVWells Risked
Phase IVWells Success
25.
Higher gas price facilitates new development projectHigher gas price facilitates new development project
John Brookes (STO 45% )
• Proven, reliable supplier
• ~ 170PJ net uncontracted
2P reserve
• Several new contracts signed
at higher gas prices
Reindeer (STO 45% )
• 410 - 640 PJ gross resource
• Plateau rate ~ 110 mmscf/d
• Schedule
- FEED commenced
- Sanction end Q1 2008
- First gas mid 2010
WA Oil & Gas WA Oil & Gas –– John Brookes & ReindeerJohn Brookes & Reindeer
DampierDampier
Barrow
Island
Barrow
Island
StagStag
Onslow
East SparEast Spar
SparSpar
MaitlandMaitland
John Brookes
Reindeer
Western
Australia
0 50
Kilometres
Indian OceanIndian Ocean
Varanus
Island
Varanus
Island
Legend
Santos Acreage Gas Field
Gas Pipeline Oil Field
Oil Pipeline
Legend
Santos Acreage Gas Field
Gas Pipeline Oil Field
Oil Pipeline
26.
20 30 40 50 60
JCC ($/ Bbl)
Ex
-sh
ip L
NG
Pri
ce
($
/M
MB
tu)
LNG Projects LNG Projects -- OverviewOverview
• Favourable industry
dynamics
• LNG prices at parity with oil
• Focus on monetising
contingent resources
- Gladstone
- PNG
- Timor/ Bonaparte
- Browse
- Kutei
Well positioned with portfolio of 5 potential LNG opportunitiesWell positioned with portfolio of 5 potential LNG opportunities
Asian LNG Price Trends
Mid 2006Mid 2006
Late 2005Late 2005
Late 2006Late 2006
20032003
Early 2005Early 2005
Mid 2005Mid 2005PrePre--20022002
PricesPrices
Oil ParityOil Parity
◄ Oil Parity
Source: Poten & Partners
27.
LNG Projects LNG Projects -- Gladstone LNGGladstone LNG
• Access LNG pricing and volume growth for CSG resource
• Site secured
• Project “State Significance”status achieved
• A$5 to A$7bn investment
• First LNG target 2014
• Board approved expenditure of A$300m in 2007/08
- CSG reserves and production expansion
A A ‘‘game changinggame changing’’ investment opportunityinvestment opportunity
Curtis IslandCurtis Island
Hamilton
Point
Hamilton
Point
Bridge to
mainland
Bridge to
mainland
28.
LNG Projects LNG Projects –– Timor/BonaparteTimor/Bonaparte
• Material acreage position
• Bayu-Undan interest
increased to ~ 11.4%
• Appraisal ongoing
- 6,000 km2 3D acquired
• Aligned with ConocoPhillips
• Petrel/Tern commercialisation
opportunities
- Petrel 3D seismic acquisition
ConocoConoco concept studies for Caldita/Barossa encouragingconcept studies for Caldita/Barossa encouraging
00 100100
KilometresKilometres
Legend
Santos Acreage Gas Field
Gas Pipeline Prospect
Legend
Santos Acreage Gas Field
Gas Pipeline Prospect
DarwinDarwin
SunriseSunriseAbadiAbadi
CalditaCalditaEvans ShoalEvans Shoal
BarossaBarossa
PetrelPetrel
TernTern
Santos (Op) 40%
Shell 50%
Osaka Gas 10%
Santos 40%
ConocoPhillips (Op) 60%
Bayu-Undan & DLNG1
Santos 11.4%
ConocoPhillips (Op) 56.7%Petrel
Santos 100%
Tern
Santos 95%
Frigate
Prospect
Bayu
Undan
Bayu
Undan
29.
LNG Projects LNG Projects -- PNG LNGPNG LNG
• Underpinned by Hides (STO 25% )
• Pre-FEED engineering contracts
- Bechtel
- KBR and JGC
• Preferred LNG sites identified
• PNG Gov negotiations underway
• JV weight now behind ExxonMobil
• Target FEED by end 2007
• Material for Santos
- 230 mmboe of reserves
- 8 mmboe annual production
Project building strong momentumProject building strong momentum
PRL 9
PDL 3
Papua New GuineaPDL 1PRL 5
SE Gobe
Barikewa
Legend
Santos Acreage
Oil Field
Gas Field
Oil Pipeline
Legend
Santos Acreage
Oil Field
Gas Field
Oil Pipeline
Hides
Elevala
Marine
Terminal
Proposed
LNG Facility
30.
LNG Projects LNG Projects –– Browse BasinBrowse Basin
• Proximal to future LNG
projects
- Inpex & Ichthys LNG
- Woodside & Browse LNG
• Active exploration
program
- I chthys North-1 drilling in
Q4 2007/Q1 2008
- High probability extension
of Ichthys Field
- 30% equity, with carry by
farminee (Inpex)
Well positioned with material acreage positionWell positioned with material acreage position
I cht
hys
LNG
Icht
hys
LNG
Bro
wse
LN
G
Bro
wse
LN
G
Territory of Ashmore
& Cartier Islands
Territory of Ashmore
& Cartier Islands
Western AustraliaWestern Australia
Santos (Op) 30%
Inpex Browse 20%
Chevron 50%
Santos (Op) 47.83%
Chevron 24.83%
Inpex 20.00%
Beach 7.34%
WA-274-PWA-274-P
I chthys
North-1
Legend
Santos Acreage Oil Field Gas Field
Gas Discovery Exploration Well
Legend
Santos Acreage Oil Field Gas Field
Gas Discovery Exploration Well
WA-281-PWA-281-P
Prelude-1
(Shell)
31.
Asian Growth Asian Growth –– Acreage ExpansionAcreage Expansion
0 2 50
k ilo met res
Nam Con SomBasin
Nam Con SomBasin
Song HongBasin
Song HongBasin
Hanoi
Vietnam
Thailand
Cambodia
Laos
China
Burma
Malaysia
Block Block
12 W12 W
Block 101Block 101--
100/ 04100/ 04
0 100
k i lom etr es
Ganges-BrahmaputraDelta
Ganges-BrahmaputraDelta
Kolkata
India Bangladesh
India
Legend
Gas discovery 2007
Legend
Gas discovery 2007Gas discovery 2007
Burma
LegendLegend
Santos acreageSantos acreage Oil pipeline Oil pipeline
Oil fieldOil field Gas pipelineGas pipeline
Gas fieldGas field
0 250
k ilom et res
0 250
k ilom et res
East JavaBasin
East JavaBasin
KuteiBasinKuteiBasin
Wortel
Kalimantan
East Java
Oyong
Maleo
Hiu Aman
0 100
kilometres
Naushkent SKaag
AkBura
CharvakEast Mailisu
West Mailisu
KatranBatkenSulukta
Aksai
Ashvaz
Naryn
Arkyt
Nanai
SohWest Soh
Tuzluk
Bishkek
Kyrgyzstan
ChinaTajikistan
Kazakhstan
Uzbekistan
32.
Two oil discoveries, with follow-on opportunitiesTwo oil discoveries, with followTwo oil discoveries, with follow--on opportunitieson opportunities
• Blackbird/Dua (STO 37.5% )
- Reservoir and facilit ies studies
underway
- Project sanction in 1H 2008
- Expression of interest prepared
for FPSO supply
- Target first oil in 2010
• Further exploration in 1H 2008
25km
Legend
Santos acreage Gas field
Oil Field Gas Pipeline
Prospect
12W PSCBlackbird/Dua development conceptBlackbird/Dua development conceptBlackbird/Dua development concept
Asian Growth Asian Growth –– Nam Con Nam Con SomSom BasinBasin
Blackbird oil discovery
CanaryCanaryQuitQuit
JayJay
Dua oil discoveryDua oil discoveryDua oil discoveryPeacockPeacock
FalconFalcon
SwanSwan
33.
• Prospective and lightly
explored area
• Large number of fields
discovered in area to
northwest (China)
• First Santos operated
project in Vietnam
• Seismic commitment
accelerated 1 year and
completed in August 2007
• Prospects being generated
for drilling in 2008
Roc / Roc / Horizon Horizon
DiscoveryDiscovery
Vietnam
Rapid progress in first year – exploration underwayRapid progress in first year Rapid progress in first year –– exploration underwayexploration underway
Asian Growth Asian Growth –– Song Hong BasinSong Hong Basin
3D Seismic 3D Seismic -- 20072007
679 sq km679 sq km
PetronasPetronas //Yen Yen TuTu
DiscoveryDiscovery
China
0 50
Kilometres
101-
100/04 PSC
SongSong
HongHong
BasinBasin
Legend
Santos acreage Gas field Oil Field
34.
Indonesia Indonesia –– OyongOyong and Worteland Wortel
Oyong oil development to be online in SeptemberOyongOyong oil development to be online in Septemberoil development to be online in September
• Oil phase
- Barge sail-away mid August
- First oil in September
• Gas phase
- 60km pipeline to Grati
- Gas sales to Indonesia Power
- FEED complete, FID YE 2007
- First gas YE 2008
• Potential Wortel synergies
- Tie back to Oyong
- Seismic & appraisal well in 2008
- First gas 2010
35.
SummarySummary
Leverage to strong energy environmentLeverage to strong energy environmentLeverage to strong energy environment
Track record Track record
of operational of operational
deliverydelivery
Transition toward Transition toward
higher margin higher margin
businessesbusinesses
Focus on Focus on
monetising monetising
contingent contingent
resourcesresources
36.
Disclaimer & Important NoticeDisclaimer & Important Notice
This presentation contains forward looking statements that are sThis presentation contains forward looking statements that are subject to ubject to
risk factors associated with the oil and gas industry. I t is belrisk factors associated with the oil and gas industry. I t is believed that the ieved that the
expectations reflected in these statements are reasonable, but texpectations reflected in these statements are reasonable, but they may hey may
be affected by a range of variables which could cause actual resbe affected by a range of variables which could cause actual results or ults or
trends to differ materially, including but not limited to: pricetrends to differ materially, including but not limited to: price fluctuations, fluctuations,
actual demand, currency fluctuations, geotechnical factors, drilactual demand, currency fluctuations, geotechnical factors, drilling and ling and
production results, gas commercialisation, development progress,production results, gas commercialisation, development progress,
operating results, engineering estimates, reserve estimates, losoperating results, engineering estimates, reserve estimates, loss of market, s of market,
industry competition, environmental risks, physical risks, legisindustry competition, environmental risks, physical risks, legislative, fiscal lative, fiscal
and regulatory developments, economic and financial markets condand regulatory developments, economic and financial markets conditions in it ions in
various countries, approvals and cost estimates.various countries, approvals and cost estimates.
All references to dollars, cents or $ in this document are to AuAll references to dollars, cents or $ in this document are to Australian stralian
currency, unless otherwise stated.currency, unless otherwise stated.
37.
Reference slides
38.
Prices & Exchange Rates Prices & Exchange Rates
+ 6.5%3.373.59Australian Gas Prices (AUD/gj)
-1.6%7.427.30USA Gas Price (USD/mcf)
-9.7%92.2083.27Realised Oil Price (AUD/bbl)
-9.8%0.74590.8189AUD/USD Exchange Rate
(after hedging)
-0.4%68.4468.19Realised Oil Prices (USD/bbl)
11stst HalfHalf 11stst Half ChangeHalf Change
20072007 20062006 %%
39.
11stst HalfHalf 11stst HalfHalf
20072007 20062006
Significant I tems (after tax)Significant I tems (after tax)
Impairment write-down (75) (20)
Net gain on redetermination of unitised field 32 -
Incremental depletion and depreciation
due to impairment reversal - 2
Banjar Panji provision - (19)
(43) (37)
$m$m
40.
Underlying Profit Underlying Profit –– Operating I temsOperating I tems
PrePre-- tax tax PostPost --Tax Tax
20072007 20072007
Sales (98) (78)
Production costs (26) (21)
Other operating costs 20 16
Gas purchases 35 25
DD & A (40) (33)
Selling, general and administrative (22) (17)
(131) (108)
Variances 1Variances 1stst half 2007: 1half 2007: 1stst half 2006half 2006
$m$m
41.
Impairment ChargeImpairment Charge
11stst HalfHalf 11stst HalfHalf
20072007 20062006
Before tax (75) (26)
After tax (75) (20)
• 2006 write-down related to Patricia Baleen and US assets
• 2007 write-down related to US assets
Impairment write-down
$m$m
42.
Exploration & Evaluation ExpensedExploration & Evaluation Expensed
11stst HalfHalf 11stst HalfHalf
20072007 20062006
132199101 133 Total
(37)-USA
95101Continuing Operations
2424 --Sidoarjo Provision
6313027 59 Drilling
454574 74 Seismic, G&G, studies
ExpensedIncurredExpensedIncurred
$m$m
43.
Cost of Sales Cost of Sales
11stst HalfHalf 11stst Half Half ChangeChange
2007 $m2007 $m 2006 $m2006 $m %%
Production costs 211 185 14.0
Pipeline tariffs 27 24 12.5
Royalties 36 44 -18.2
PRRT & other similar taxes 10 26 -61.2
Total Operating Costs 284 279 1.8
Gas Purchases 6 41
Inventory Movement (19) (21)
D, D & A 313 271 15.5
Cost of Sales 584 570 2.2
44.
Net Free Cash FlowNet Free Cash Flow
Operating cash flow 643 907 538Capital expenditure (428) (780) (606)
NET CASH FLOW 215 127 (68)
Net acquisitions
- asset (70) 22 1- corporate - (5) (19)
NET FREE CASH FLOW 145 144 (86)
Gearing % 30.8 30.2 33.3
11stst Half Half 22ndnd Half Half 11stst HalfHalf
2006 $m2006 $m 2006 $m2006 $m 20072007 $m$m
45.
2007 Capital Expenditure Outlook2007 Capital Expenditure Outlook
20072007 20062006$m$m
171141Exploration Evaluation
11-Acquisitions
1,3061,338Total
794890Development
83133Development Delineation
258174Exploration
46.
Capital ExpenditureCapital Expenditure
0
100
200
300
400
500
2007 2006
0
50
100
150
200
250
E&EDEV
EA
Gas Cooper
Oil
WA Oil
& Gas
LNG
Asia
Other
Explora-
tion Delineation
Evaluation
2007 2006Delineation
Develop-
ment
Develop-
ment
47.
2007 Second Half Sensitivities 2007 Second Half Sensitivities
• US$1 change in the unhedged oil price per barrel leads to
change of A$9 million in profit after tax
• One cent movement in the exchange rate will cause a profit
after tax movement of A$4 million
• A 1% change in interest rates will cause a profit after tax
movement of A$5 million
