Santos (ASX:STO) announced a breakthrough in its Alskan operations with the completion of the Quokka-1 appraisal well on the North Slope.
The well, which reached a total depth of 4,767 feet, encountered high-quality reservoir sands within the Nanushuk formation.
Initial testing revealed approximately 143 feet of net oil pay with 19% porosity, achieving a flow rate of 2,190 barrels of oil per day following stimulation.
The result confirms the presence of light-gravity oil that correlates with the 2020 Mitquq-1 discovery, located roughly 10km away.
Santos Managing Director and CEO Kevin Gallagher described the results as a "material addition" to the company’s portfolio, noting that Quokka reinforces their long-term development runway in the region.
The data collected supports the potential for a two-drill-site development, with a production capacity comparable to the company’s Pikka Phase 1 Project.
To further optimise planning, Santos intends to conduct a comprehensive 3D seismic survey during the 2026–2027 winter season.
The facility is mechanically complete, and commissioning is progressing well, with fuel gas already successfully introduced to the plant.
Santos, which holds a 51% operating interest in the Quokka Unit alongside partner Repsol (49%), will now integrate the appraisal results into its FY26 contingent resource assessment as it transitions into the next stage of development planning and permitting.