Santos Completes Quokka-1 Appraisal, Pushes Forward Alaska and Barossa Projects

Australian oil and gas firm Santos has announced the successful completion of the Quokka-1 appraisal well in Alaska’s North Slope, marking a key step in advancing its Nanushuk formation development plans. The appraisal results have confirmed high-quality, light-gravity oil reserves, laying a solid foundation for a two-drill-site development with production potential comparable to the first phase of the nearby Pikka project, according to Santos’ official announcement on April 9.

Santos holds a 51% operating interest in the Quokka Unit, with Spanish energy company Repsol owning the remaining 49%. Drilling of the Quokka-1 well began on 1 January 2026 and reached a depth of 1,459m (4,787ft). The well encountered a reservoir in the Nanushuk formation with approximately 143ft of net oil pay and an average porosity of 19%, and achieved a flow rate of 2,190 barrels of oil per day (bopd) after a single stage fracture stimulation.

Located around 10km from the 2020 Mitquq-1 discovery, the Quokka Unit’s resource potential is being further evaluated by Santos. In fiscal year 2025 (FY25), the company disclosed 2C contingent resources of 177 million barrels of oil equivalent (mboe) for the unit, with appraisal results to be included in the FY26 contingent resource review. A 3D seismic survey is also planned for the upcoming winter to optimize field planning, while development planning and key permitting activities are already underway.

Meanwhile, the first phase of the Pikka project—situated strategically west of the Quokka Unit—is approaching its first oil. Mechanical completion has been achieved, and commissioning activities are progressing smoothly, with fuel gas already introduced to the plant, a significant milestone for the project. By the end of the first quarter of 2026 (Q1 2026), 24 development wells had been drilled, 20 of which are undergoing fracturing and flowback as expected, with well tie-in work advancing to support production start-up and output growth. Santos anticipates reaching a plateau capacity of 80,000bopd by mid-2026, with first sales revenue projected two months after the first oil.

Santos managing director and CEO Kevin Gallagher commented: “The Quokka-1 results demonstrate the exceptional quality of the Nanushuk reservoir and confirm our geological assessment of this significant accumulation. Located strategically to the east of our Pikka phase one development, Quokka represents another high-return opportunity that strengthens our position on the North Slope and extends our development runway in Alaska for years to come.”

In addition to its Alaska projects, Santos is making steady progress in resuming full gas production at the Barossa gas project. Despite initial operational constraints, three cargoes were sold in Q1. The dry gas seals on the floating production, storage and offloading (FPSO) compressors have been replaced to enable full-capacity production, and heat exchangers are being flushed and cleaned to clear blockages. Full production is expected to restart around 18 April 2026, following the BW Opal FPSO vessel’s first gas receipt from the $4.5bn (A$6.83bn) Barossa LNG project in September 2025, according to Santos’ project update.