Highlights

  • Quokka-1 appraisal well confirms high-quality Nanushuk reservoir with 2,190 bopd flow rate
  • Pikka Phase 1 first oil imminent, ramp-up to 80,000 bopd expected by mid-2026
  • Barossa Gas Project ready to restart full production after key FPSO upgrades

Santos Limited (ASX:STO) has announced a major milestone with the successful completion of the Quokka-1 appraisal well on Alaska’s North Slope, further defining the high-quality Nanushuk reservoir in the Quokka Unit. The well, drilled to 4,787 feet, encountered 143 feet of net oil pay with an average 19% porosity and achieved a flow rate of 2,190 barrels of oil per day following fracture stimulation. Located six miles from the Mitquq-1 discovery, reservoir sands correlate between the wells, confirming light, high-quality oil and strong pricing potential. Santos is now planning a two-drill-site development while evaluating resource potential and initiating permitting activities. Meanwhile, Pikka Phase 1 nears first oil, with 24 wells drilled and commissioning progressing, and the Barossa Gas Project is set to resume full production around 18 April following FPSO maintenance. These developments reinforce Santos’ North Slope position and long-term Alaskan growth strategy.

Quokka-1 Confirms Alaska Reservoir Potential

The Quokka-1 well represents a significant addition to Santos’ Alaskan portfolio, confirming the exceptional quality of the Nanushuk reservoir. Spudded in January 2026, the well’s 143 feet of net oil pay and 19% porosity demonstrate strong production potential. Flow testing achieved 2,190 bopd, supported by light, high-quality oil that outperforms nearby Pikka pricing. Located close to the Mitquq-1 discovery, reservoir correlation and fluid analysis validate the feasibility of a two-drill-site development, potentially matching Pikka Phase 1’s production capacity. Santos has commenced key permitting and development planning, with resource estimation ongoing for inclusion in the FY26 contingent resource review. This appraisal underlines the strategic importance of Quokka in extending North Slope development and optimising future production opportunities.

Pikka Phase 1 and Barossa Project Updates

While Quokka-1 boosts Santos’ exploration potential, Pikka Phase 1 is poised to deliver first oil in the coming weeks. Mechanical completion and commissioning milestones, including successful fuel gas introduction, position the project for ramp-up toward 80,000 bopd by mid-2026. Development wells are on track, with well tie-ins and frac operations progressing as expected, supporting initial cargo loading and first sales revenue shortly after first oil. At the same time, the Barossa Gas Project is preparing to restart full production following FPSO upgrades, including dry gas seal replacements and heat exchanger cleaning. Production restart is scheduled around 18 April, enabling the project to achieve maximum output. Together, these projects reinforce Santos’ commitment to disciplined investment and sustained growth on the North Slope.