This follows the 119% reserves replacement achieved in 2002.
Santos' Proven reserves at the end of 2003, after 54.2 million barrels of oil equivalent (mmboe) of production and after divestments, totaled 338 mmboe, compared with 312 mmboe at the end of 2002.
Oil and natural gas liquids comprised 29% per cent of 1P reserves. Around 30% of 1P reserves were located in the Cooper Basin at the end of the year, where the company's strategy is to convert Proven and Probable (2P) reserves to 1P on a just-in-time basis to maximise shareholder value.
"This is the second successive year of positive revisions in Proven reserves since the company commenced reporting Proven reserves at the end of 2001," Santos' managing director, John Ellice-Flint, said today.
"Significantly, we have been able to achieve the target we set three years ago of 150% proven reserves replacement by the end of 2003 and at a world-class cost. At the same time the quality of our reserves is increasing," he said.
"Of 1P reserve additions, 88% were through the drill-bit, 45% resulting from drilling in 2003.
"In 2003 we also achieved our key target of converting 2P to 1P reserves.
"Going forward the focus will be on converting our substantial Proven, Probable and Possible (3P) reserves and Contingent Resources to 2P and 1P reserves."
Developed 1P reserves in the Cooper Basin at the end of 2003 were 79% of total Cooper Basin 1P reserves.
For the company as a whole Proven Developed reserves were 43% of total proven reserves.
2P reserves declined during the year from 710 mmboe at the end of 2002 to 636 mmboe at the end of 2003 (on a net entitlement basis).
Additions came from gas commercialisation/appraisal (25 mmboe) and acquisitions (24 mmboe). Reductions resulted from production, divestments of the Bentu gas field in Indonesia and a portion of the company's interest in Bayu-Undan (40 mmboe), the reclassification of 2P reserves in the Reindeer field and field revisions in the Cooper Basin, East Spar and in the United States (29 mmboe).
Contingent resources (best estimate) increased from 1,233 mmboe at the end of 2002 to 1,450 mmboe at the end of 2003.
