The Santos Ltd (ASX: STO) share price is down 0.8% in afternoon trade.
Santos shares closed on Friday trading for $7.18 and are currently trading for $7.13.
It's not only the Santos share price in the red today. Most of the big ASX energy shares are struggling.
While the S&P/ASX 200 Index (ASX: XJO) is up 0.6% at the time of writing, the S&P/ASX 200 Energy Index (ASX: XEJ) is down 0.8%.
Much of that's due to sliding oil and gas prices.
Brent crude oil dipped 1% overnight to US$97.32 per barrel. That's down from just over US$110 per barrel at the end of July, as renewed COVID fears in China portend a possible fall in demand while Iran may soon be adding to global supplies.
This is pressuring the Santos share price despite the company reporting positive well flow tests this morning.
Image source: Getty Images
What well flow tests were reported?
The announcement, released by Santos' JV partner Tamboran Resources Ltd (ASX: TBN), reported increasing flow rates at the Tanumbirini 2H (T2H) and Tanumbirini 3H (T3H) wells in the EP 161 exploration zone, located in the Northern Territory's Beetaloo Sub-basin.
Santos holds a 75% stake in EP 161 and is the operator while Tamboran holds the other 25%.
But the Santos share price remains in the red despite the report that T2H is currently flowing at a 40% higher eight-day average flow rate than it was in January, while T3H is flowing at a 150% higher eight-day average flow rate.
The T3H well peaked at 9.1 million standard cubic feet per day. According to the release, that's the highest sustained flows seen from any well in the Beetaloo Sub-basin to date
Commenting on the flow test results, Tamboran CEO, Joel Riddle said:
The increase in flow rates in the T2H and T3H wells highlights the significant potential of our 'Core' acreage position within the Beetaloo Sub-basin, which benefits from the higher pressures associated with the deeper reservoir found in the region… The T2H and T3H wells will continue to be flow tested over the next few months.
Santos share price snapshot
Although it's retraced along with dipping energy prices since mid-June, the Santos share price remains up 8% in 2022. That compares to a year-to-date loss of 7% posted by the ASX 200.
Longer-term, Santos shares are up 117% over five years.
