* Santos revenue surges on highre oil,gas prices
* Cuts costs, lifts output guidance (Adds CEO quote, cost outlook, details)
July 20 (Reuters) - Australian oil and gas producer Santos Ltd STO.AX reported a 30 percent rise in second-quarter sales revenue on Thursday, helped by increased prices of oil and liquefied natural gas (LND).
The company's quarterly sales revenue rose to $769 million from $591 million in the same quarter a year ago, above the forecast of $692 million from Royal Bank of Canada.
Production dipped 1 percent from the previous quarter to 14.7 million barrels of oil equivalent (mmboe), but Santos raised full-year production guidance to 57-60 mmboe from 55-60 mmboe previously, citing "solid operational performance."
The company also cut its overall 2017 production cost guidance to $8-$8.25/boe, down from $8.45/boe in 2016.
"These are strong outcomes that highlight Santos' ongoing transformation into a low-cost, reliable and high performance business with a robust asset portfolio that can generate significant free cash flow in a lower oil price environment," Santos Chief Executive Officer Kevin Gallagher said in a statement.
Santos shares fell to a 16-month low in June, hurt by a fall in oil prices LCOc1 on concerns about oversupply and uncertainty over Organization of the Petroleum Exporting Countries (OPEC) ability to implement production cuts.
Production at Santos' Gladstone liquefied natural gas (GLNG) operation ramped up about 38 percent to 2.9 mmboe during the quarter. The company said it plans to drill about 170 wells in 2017, up from previous guidance of 130-150 wells.
The company said its forecast free cash flow breakeven for 2017 is at $33 per barrel, well under the $47 per barrel at the beginning of 2016.
In April, the Australian government introduced a plan to restrict exports of liquefied natural gas (LNG), a move that analysts believe could expose GLNG to a volatile global LNG market.