Santos took a significant step in its growth strategy in Alaska by confirming the positive result of the Quokka-1 appraisal well in the Quokka Unit, located on the North Slope of the state. The company, operator with a 51% interest, reported that the well enabled more precise delineation of the Nanushuk reservoir and reinforced the viability of a new oil development alongside its partner Repsol, holder of the remaining 49%.
In addition, the campaign confirmed a net oil interval of approximately 43 meters within the Nanushuk formation, with an average porosity of 19%. Following single-stage hydraulic fracture stimulation, the well achieved a flow rate of 2,190 barrels of oil per day. This performance supports Santos’ assessment of reservoir quality and the commercial potential of the asset in an area where the company is already concentrating much of its future growth.
Quokka-1 Drives Potential in Alaska
Quokka-1 was drilled approximately 10 kilometers from the Mitquq-1 discovery well, executed in 2020. According to the company, there is correlation between the sands of both wells and fluid analyses confirm the presence of high-quality light crude. This point is particularly relevant because it improves the well’s performance expectation and opens the door to more favorable barrel valuation compared to other crude oils in the area.
Likewise, the new geological data support a development scheme with two drilling platforms and production capacity comparable to Pikka phase 1. Santos has already initiated project planning and the process to obtain necessary permits, while continuing to evaluate production potential and final resource volume.
In its fiscal year 2025 close, the company reported 2C contingent resources of 177 million barrels of oil equivalent for the Quokka Unit. The update planned for fiscal year 2026 will be key to defining the asset’s dimension within the Alaska portfolio and its weight in the company’s North American expansion.
Pikka Approaches First Oil
In parallel, Santos confirmed that Pikka phase 1 is now mechanically complete and advancing through its commissioning stage. The successful introduction of fuel gas into the plant marked an important operational milestone and brought the project to the threshold of its first oil production, expected in the coming weeks.
Furthermore, as of the end of the first quarter of 2026, 24 development wells had been drilled and hydraulic fracturing had been executed on 20 of them. The company indicated that these wells delivered results aligned with pre-drill forecasts, while necessary connections advance to initiate production ramp-up.
Santos’ goal is to reach a maximum capacity of 80,000 barrels per day by mid-2026. After first oil, the project must complete pipeline filling, inventory accumulation, and shipment of the first cargoes to market, so initial sales revenue is expected approximately two months after production startup.
Barossa Advances in Its Restart
Outside Alaska, the company also updated the status of the Barossa Gas Project. During the first quarter it sold three cargoes, although production remained limited by commissioning activities. Santos indicated that it has already replaced the dry gas seals in the FPSO compressors and is working on cleaning heat exchangers to eliminate obstructions before resuming production.
With this outlook, Santos faces the coming weeks with three high-impact fronts: the advancement of Quokka as a potential new oil development in Alaska, the startup of Pikka phase 1, and the operational normalization of Barossa. The combination of these projects reinforces its position in oil and gas and marks a decisive stage for transforming investment into production and cash flow.
Source: Santos
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