Australian oil and gas producer Santos said its 2005 profit more than doubled on increased production and record world oil prices, and upgraded its estimates of proven oil and gas reserves.

Adelaide-based Santos, which brought on-line a string of new projects last year, reported production of 56 million barrels of oil equivalent (boe), 19 per cent up on 2004, and said it expected production to reach 60-61 million boe in 2006 and 62-63 million boe in 2007.
"The market may be a little disappointed by the 2007 number," said Adam Dixon of fund manager Ausbil Dexia.
"The headline number looks okay, but I would point out some quality issues as there are a high number of exceptional items."
Santos said proven reserves of oil and gas rose by 19 per cent to 414 million boe after exploration, re-appraisal and acquisitions saw a record 122 million boe added last year.
The company, which will start production at four oil and gas fields this year, made net profit before exceptionals of A$638.7 million ($473.1 million) in 2005, up 107 per cent on 2004 .
Reported net profit was a record A$762.1 million, also more than double a year earlier, but included one-off reversals of earlier write-downs when oil prices were lower, gains on asset sales and insurance received after an explosion at its Moomba gas plant.
Santos said improved 2005 production was due largely to the continued contribution of the Mutineer-Exeter oil field and the John Brookes gas project off Western Australia, which both began production, although Mutineer has recently posted declining volumes and suffered weather-related outages.
The company will this year make liquefied natural gas and oil the focus of a 25-well exploration programme, 17 of which will be outside Australia, said officials.