Santos has rejected speculation it is about to tap investors for extra funds due to the financial pressure caused by weak oil prices.
The oil and gas producer's shares plunged nine per cent to their lowest value in 11 years on Friday, amid concerns the company would need to raise capital as oil prices show no sign of recovery.
Depressed prices forced Santos into taking $1.6 billion in impairments and posting a $935 million annual loss in 2014, and its revenue has continued to fall despite improved production.
Santos on Monday said it has ample access to funds, with over $2 billion in cash and undrawn debt facilities.
"Santos confirms that it has no current intention to undertake an equity raising," it said.
The statement gave its share price a temporary boost, rising as much as 4.5 per cent.
But the shares fell back later in the session to close one cent lower at $5.98.
The company also highlighted its efforts to overcome low oil prices, with capital expenditure halved in the six months to June, compared to the same period a year earlier.
Production costs have also been cut by 11 per cent.
Santos expects its output to rise over the next few years, as its flagship Gladstone LNG project in Queensland ramps up after production begins in the coming months.
The company will deliver its half year financial results on Friday.
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