Santos 2025 Annual Reserves statement: higher reserves and long-life assets

The Santos Ltd (ASX: STO) share price is in focus after the company reported a 13 mmboe increase in proved plus probable (2P) reserves before production, and a 17-year 2P reserves life at the end of 2025.

What did Santos report?

• Proved plus probable (2P) reserves: 1,484 million barrels of oil equivalent (mmboe), up 13 mmboe before production
• Annual proved reserves replacement ratio: 95%
• Developed reserves now 62% of total 2P reserves
• 2P reserves life: 17 years
• 2P reserves mix: 83% gas, 17% liquids
• Estimated revenue from product sales for 2025: ~$4,939 million

What else do investors need to know?

Santos saw its 2P reserves replacement driven by additions in the Cooper Basin and Papua New Guinea assets. Around 40% of total 2P reserves are held in Santos' international assets.

Contingent resources (2C) decreased to 3,212 mmboe, largely due to divestments in the Petrel and Tern fields. On the climate front, Santos has injected 1 million tonnes of CO₂ into storage and increased its contingent CO₂ storage resources by 24 million tonnes to 202 million tonnes in the Cooper Basin.

What did Santos management say?

Managing Director and Chief Executive Officer Kevin Gallagher said:

Today's statement is the result of Santos' disciplined annual reserves review and accounting processes, which include external audit of approximately 97 per cent of total 2P reserves. It's also pleasing to add another 24 million tonnes of 2C CO₂ storage, which is an important asset to underpin Santos' decarbonisation strategy and commercial expansion of the successful Moomba CCS project to meet customer demand for CO₂ storage in the future.

What's next for Santos?

Santos says its focus remains on disciplined capital allocation while supporting the long-term growth of energy demand in Australia and Asia. The continued rise in CO₂ storage capacity, especially at the Moomba CCS project, is seen as a key pillar in meeting both commercial and decarbonisation goals.

Investors can expect further updates when Santos finalises its audited 2025 financial statements. For now, guidance figures including revenue, costs, and other financial metrics remain preliminary.

Santos share price snapshot

Over the past 12 months, Santos shares have remained flat, trailing the S&P/ASX 200 Index (AS: XJO) which has risen 5% over the same period.

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