The oil and gas producer achieved record second quarter sales revenue of $749 million, up 18 per cent from $634 million in the March quarter.
Santos said its second quarter average gas price of $4.01 per gigajoule was four per cent higher than the previous corresponding period.
Production for the June quarter was 13.9 million barrels of oil equivalent (mmboe), down 11 per cent on the corresponding quarter in 2007.
The company's production guidance for 2008 is for between 54mm boe and 56 mmboe, down from 59.1 mmboe in 2007.
Santos has said previously that its full year production has been affected by the sale of 40 per cent of its Gladstone liquefied natural gas (GLNG) project to Malaysia's state-owned oil and gas company Petronas.
Santos said also that production was hampered by the shut-in of its John Brookes gas and condensate field after the Apache Energy Ltd-operated Varanus Island facility on Western Australia's North West Shelf was shut down temporarily on June 3 following a pipeline explosion.
Santos holds a 45 per cent interest in the John Brookes joint venture and Apache holds the remainder.
Santos's production was affected also by a planned workover campaign on the Mutineer-Exeter oil production facilities in the North West Shelf, which it operates with a 33.4 per cent interest.
Acting chief executive David Knox said the record result was pleasing given the affect of the workovers and shut-in.
Santos said revenue rose 14 per cent to $1.38 billion for the six months to June 30 compared with the previous corresponding half.
The company said it produced 27.6 mmboe during the half year, down eight per cent from 30.1 mmboe in the same period in 2007.
Knox said he was pleased that rapid regulatory approval had enabled Santos to complete its partnership transaction with Petronas on Wednesday in Kuala Lumpur, with Santos receiving $US2 billion ($A2.08 billion) as consideration for Petronas' stake in the project.
"A further payment of $US500 million ($A520.9 million) will be made by Petronas upon reaching a final investment decision for a second LNG train of 3Mtpa capacity," Santos said.
The $7.7 billion Gladstone LNG project will involve a 3-4 million tonne per annum (Mtpa) LNG processing train and associated infrastructure, with first exports expected in early 2014.
Santos's joint venture partner in the $US11 billion ($A11.46 billion) ExxonMobil-operated Papua New Guinea (PNG) LNG project, Oil Search Ltd, said on Thursday that it had reached a domestic gas agreement with the PNG government.
Oil Search said 40 per cent of its gas resource in PNG - about two trillion cubic feet of gas plus associated liquids - would be commercialised through the development of further LNG trains and other gas-based domestic and export industries.
The remaining 60 per cent is committed to the PNG LNG project.
The final investment decision for this project should be made in the fourth quarter of 2009.
