Ann: Appendix 3B completion of entitlement offer , page-12

re: Ann: Appendix 3B completion of entitlemen... Kung, Senex have estimated A$70 per profit per bbl, for CB oil they produce, 4 times in presentations last 12 months and I see no reason looking at all the figures I've seen to contradict that.
Please provide us with your reckoning which leads you to doubt that $70 per barrel estimate.
Firstly give me your estimated sales price [using Brent Crude as a guide} in $A you expect SXY to receive per bbl for the last quarter ending 30June12 when POO dropped dramatically and for the current Quarter ending 30Sept.
From Wed's Santos 2nd quarter activites report:
"The average realised oil price for the quarter was US$116.56 per barrel."
That is what Santos received in US$ for the June Quarter which I guess is only slightly more than A$ price since our dollar was below parity or about on par for much of that time.
You will also notice STO Cooper Basin production was up strongly as will ours be and some of their drilling successes we have a share in.
from Santos' Quarterly CB oil in thousands of barrels

Crude oil (000 bbls)
Cooper Basin
Q2 2012 809.7
Q2 2011 713.8
Q1 2012 739.9

Overall Production
Santos Second quarter production up 9% and sales revenue up 18%

> Santos today announced a 9% lift in second quarter production to 13 million barrels of oil equivalent (mmboe).
> Quarterly crude oil production of 2.4 million barrels was the highest in four years and 46% above the corresponding period due to production from Chim Sáo in Vietnam and higher Cooper Basin oil production. The average realised oil price for the quarter was US$116.56 per barrel.
> Gas production of 55 PJ (9.5 mmboe) was 4% above the corresponding period primarily due to production from new assets in Western Australia partially offset by the planned shutdown of Darwin LNG during the current quarter.
> The average gas price of $4.83/GJ was up 5% on the corresponding period, primarily reflecting higher Indonesian gas prices following the favourable Maleo price review and the commencement of production from Reindeer in Western Australia, partially offset by lower LNG sales volumes due to the planned Darwin LNG shutdown.
> Sales revenue of $739 million for the June quarter was 18% higher than the corresponding period, driven by higher oil and gas prices and higher sales volumes. Timing of oil shipments resulted in a 488,000 barrel net underlift in the first half of 2012, which is expected to be recovered during the remainder of the year.
> Production guidance for 2012 is maintained at 51 to 55 mmboe.