Santos has narrowed its full-year production and sales guidance after improved output from major assets in its fiscal third quarter.
The oil and gas producer now expects to produce between 58 and 60 million barrels of oil equivalent (mmboe) in 2017, compared to its previous guidance of 57 to 60 million.
Sales volume is now expected to hit between 79 and 82 mmboe from 75 to 80 mmboe previously.
Santos produced 15 mmboe in the three months ended September 30, a two per cent increase on the preceding three months, but down three per cent from a year earlier.
The company said volumes increased four per cent at its five core assets, which include the Gladstone liquefied natural gas terminal in Queensland, the Cooper Basin and Western Australian gas divisions, and Papua New Guinea projects.
Drilling activity was increased in both the Cooper Basin and Gladstone with 16 Cooper and 53 GLNG wells drilled in the quarter, Chief Executive Kevin Gallagher said.
Sales volumes remained in line with the preceding quarter at 21.5 mmboe, but were marginally lower year on year.
Despite steady volumes, sales revenue jumped 22 per cent from a year earlier to $793 million, as the company benefited from a sustained improvement in oil and gas prices over the past year.
Benchmark crude oil prices in September rose to their highest level in two years.
Revenue was up three per cent over the prior quarter.
Mr Gallagher said Santos is continuing to boost gas supplies in the domestic market, with the company announcing it will supply committed to more than 125 petajoules of gas into in the south-east domestic market over the coming years.
The oil and gas producer has been accused of contributing to the tight gas supply situation in the domestic market, given its reliance on third-party supplies to fill up export shipments at Gladstone.
However, the company's sales volumes from third-party supplies have been higher so far this year at 17.3 mmboe, compared to 14.5 mmboe in the first three quarters of last year.
By 1300 AEDT, Santos shares were up 1.1 per cent at $4.28 each in a firm Australian market.
Share
