Santos shares have hit a near eight year low as the energy company shelved a debt raising and announced plans to slash spending due to weak oil prices.
Santos will cut both capital and operating expenditure, and has postponed a European debt raising, believed to be worth 500 million euros ($A749.96 million), until market conditions improve.
Its shares fell 35 cents, or 3.8 per cent, to $8.73 on Thursday, their lowest level since February 2007.
Chief financial officer Andrew Seaton said Santos would review its spending plans over the next 12 months.
"Given the current oil price environment, it is prudent for the company to review its spending plans for 2015 and we expect to significantly reduce capital and operating expenditure," he said.
Santos said it had a robust funding position, including approximately $2 billion in available liquidity, and had "no current intention" to undertake an equity raising.
Last month Santos said it was considering a potential European hybrid issue, subject to acceptable market conditions.
But since the November 26 announcement, the oil market has suffered considerable volatility as oil prices fell sharply due to OPEC's announcement that it would maintain existing production levels.
IG markets analyst Evan Lucas said the company's shares were heavily sold off with the postponement of the debt issuance.
"It was pretty savage but anything in the oil space has been completely savaged this week," Mr Lucas said.
"If they can't go to the debt market and raise capital in Europe, the market theory is that they would have to do an equity raising."
He said volatility in the oil price was putting pressure on Santos in relation to its balance sheet, but he expects a steep fall in the company's capital expenditure next year as its Gladstone (GLNG) project comes online.
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