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$490 million Santos project ahead of schedule

Santos (ASX: STO) announced (link opens in PDF) this week that its $490 million oil project is anything but oozing. The Fletcher Finucane project is located in the Carnarvon Basin offshore Western Australia, and has delivered its first oil ahead of schedule.

Santos

Source: Santos.com

The site was first discovered in May 2011 and received production approval 16 months ago. In total, the area is expected to contain around 14 million barrels in reserves.

“Fletcher Finucane start-up adds significantly to our oil production and is the fifth development project Santos has delivered on budget and schedule in the past two years,” said CEO David Knox in a statement.

For the first year, Santos expects the project to have an average gross production of 15,000 barrels per day. The project will also extend the economic life of Santos’ Mutineer Exeter floating facility, as well as offer new opportunities for near-field exploration.

Santos isn’t upping production for no reason. Limited oil supply and growing demand mean oil prices are likely to rise over time. Position yourself to profit from this trend now, with The Motley Fool’s brand-new FREE research report, “3 Oil Stocks to Send Your Portfolio Gushing Higher”.

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