Santos said total sales revenue rose 2.2% to $1102 million, up from $1078 million in the previous corresponding period while total sales volumes were steady at 15.3 million barrels of oil equivalent (mmboe).

It said sales gas and ethane sales volumes and revenue were a record for any quarter in the company's history with quantities increasing by 1.7% to 64.1 Petajoules (PJ) and revenue by 6.6% to $196.1 million.

Continued success in the oil optimisation program drove a 13.3% increase in oil production to 2.9 million barrels when compared with the second quarter of 2003.

"The increase in oil production is particularly pleasing with total production increasing for the third consecutive quarter, said Santos' managing director, John Ellice-Flint.

"This was largely due to the successful Legendre North infill development well and ongoing oil initiatives in the Cooper Basin."