Santos has increased its gas production in Western Australia, following its $2.9 billion takeover of Quadrant Energy late last year.
In its June quarterly results released today, Santos revealed it produced 7.7 million barrels of oil equivalent in WA, up from 7.2 mmboe in the quarter prior.
However, capital expenditure in the state also rose during the period, from $43 million to $79 million.
The Kevin Gallagher-led company said it expected to book a significant resource upgrade on its Dorado project in the Bedout Basin of WA, which had disappointing well results recently.
Across all its operations, Santos lowered its sales guidance, and now expects annual sales of between 90 mmboe and 97 mmboe, compared to between 88 mmboe and 98 mmboe, previously.
Shares in Santos fell 2 per cent to trade at $6.90 at 2.30pm AEST.