Santos today announced that the full year sales revenue was one per cent less than the $1,478.4 million in the previous 12 months while December quarter sales revenue was $362.5 million compared favourably with $399.6 million in the previous corresponding quarter, despite the strengthening dollar.

The results were also achieved despite a 15.7% drop to $A41.47 per barrel in the average realised crude oil price for the latest December quarter - down from $A49.17 per barrel in the previous corresponding quarter.

On the up side record annual gas and ethane sales revenue of $720.8 million - up 9.3% on the previous year's $659.6 million, including the benefit of continuing high US gas prices

Overall total 2003 production was 54.2 million barrels of oil equivalent (mmboe) compared with 57.3 mmboe in 2002. December quarter production was 13.0 mmboe compared with 14.4 mmboe in the previous corresponding quarter.

"Record gas and ethane revenue for the year was a particularly good result. Otherwise these numbers are in line with expectations," said managing director John Ellice-Flint.

Also during the December quarter, Santos achieved significant progress on its new growth projects, including: Bayu Undan where first production is on track for April this year; the sanctioning of the Mutineer-Exeter oil field development (Santos 33.4%); progress on the commercialisation of the Casino gas field in the Otway Basin and the appraising of the John Brookes gas field in the Carnarvon Basin.