APA Corporation announced an oil discovery on Alaska’s North Slope from the Sockeye-2 exploration well in the Lagniappe area east of Prudhoe Bay. Santos holds a 25 per cent stake in the joint venture with APA Corporation (50 per cent) and Lagniappe Alaska, LLC (25 per cent). The exploration well cost is carried by APA as part of a 2023 farm-in agreement.

The Sockeye-2 well was drilled to a depth of approximately 10,500 feet, successfully reaching a high-quality reservoir containing around 25 feet of net oil pay within a single, blocky, Paleocene-aged sand formation with an average porosity of 20 per cent. Additionally, potential pay zones were identified in the shallower Staines Tongue formation.

Santos Executive Vice President and President Alaska, Bruce Dingeman, expressed excitement about the discovery at Lagniappe and confirmed strong progress with Pikka.

“We are pleased with the Sockeye-2 well exploration discovery and its confirmation of resource potential over our Lagniappe leasehold. In addition, we are now 80% complete at our Pikka phase 1 project. Pipeline installation is progressing well and set to be completed in two winter seasons, putting us in a good position to pursue acceleration to first oil around the end of 2025. This will be dependent on logistics and weather allowing for the mobilisation of key production models by barge up the Hay River. Until we have more certainty, guidance remains unchanged with first oil in mid-2026,” Mr Dingeman said.

Pikka phase 1 is expected to deliver 80,000 barrels of oil per day (bopd) at full production.

Santos remains committed to disciplined investment in the Alaska assets to deliver value for shareholders, delivering safe and efficient operations while advancing key development milestones.

About Santos

Santos is a leading supplier of natural gas, a fuel for the future providing clean energy to improve the lives of people in Australia and Asia.
Santos is already Australia’s biggest domestic gas supplier and aims to be a leading Asia-Pacific LNG supplier. For more than 65 years, Santos has been working in partnership with local communities, providing Australian jobs and business opportunities, safely and sustainably developing Australia’s natural gas resources, and powering Australian industries and households.
With its origins in the Cooper Basin, Santos has one of the largest exploration and production acreages in Australia and extensive infrastructure and is committed to supplying the domestic markets, unlocking resources and driving value and performance.