Santos shares have gained ground after the oil and gas producer said it had started production at its flagship GLNG liquefied natural gas project in Queensland.
But, analysts say the positive news doesn't solve the company's problem of finding a major growth asset to address lower profits and weak oil prices.
Shares in Santos were four cents, or 0.82 per cent, higher at $4.88 at 1044 AEST.
Santos says the first GLNG cargo should be shipped to Asian markets within weeks and that a second train is expected to be ready for start-up by the end of the year.
Managing director David Knox said production from the Curtis Island project, in which Santos has a 30 per cent stake, would be a significant addition to Santos' growing LNG portfolio.
"Our upstream facilities are fully operational and performing well, we're producing LNG on Curtis Island and we're now looking forward to safely delivering our first LNG cargo in the coming weeks," Mr Knox said.
Santos is considering selling assets after its profit slipped and its shares dropped by about 70 per cent in a little over a year, with Mr Knox set to step down once a successor is found.
CMC Markets analyst Michael McCarthy said the market had welcomed first gas being delivered on schedule but it did not change the overall scenario for Santos.
"Questions for Santos remain," Mr McCarthy said.
"Where does growth come from, what is the situation with its assets in NSW and what's it going to do if that temporary (coal seam gas) moratorium in NSW is not ever lifted?"
Still, Mr McCarthy said Santos' balance sheet was not under too much pressure so it would not be forced to sell assets and impact its future growth.
Santos is the operator of GLNG project alongside Petronas, Total and Kogas.
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