The Adelaide-based major said this result was 4.7% higher than the June quarter 2006 and 7.6% higher than the previous three-month period, as a result of higher seasonal gas demand and positive field performance.

Sales revenue of $634 million was 8.3% lower than the second quarter in 2006 due to the timing of oil and gas cargoes, and the stronger $A-$US exchange rate which resulted in a 10% decline in realised $A oil prices, Santos said.

Managing director John Ellice-Flint said the quarterly result highlighted that the company’s portfolio continues to deliver positive performance across many different fields.

“We remain on track to achieve full year 2007 production of between 59 and 61 million barrels of oil equivalent, which is unchanged from the guidance previously provided to the market,” Ellice-Flint said.

“Particularly pleasing was the continued ramp-up of production from the Fairview coal seam gas field, and an ongoing positive performance from the Mutineer-Exeter oil fields. We expect to further increase production from both of these areas with additional drilling in the second half of 2007.”

Ellice-Flint said the Cooper Oil Project was on track to deliver higher oil production, although flooding in central Australia and short-term oil pipeline constraints have resulted in the deferral of some production from the second quarter.

Looking ahead, Ellice-Flint said the company’s 2007 exploration program would begin in the second half of this year and was focused on the Carnarvon and Browse Basins.