Santos Strikes Gas at Wortel-1

Santos reports that the Wortel-1exploration well encountered a gross gas column of 141 meters over the interval 1242-1383 meters. The gas column is in the same Early Pliocene Mundu Formation limestone as the productive reservoir in the nearby Oyong oil & gas field.

The well is in 42 meters of water and is located in the Sampang PSC, offshore East Java, Indonesia which is operated by Santos (Sampang) Pty Ltd. It is approximately 7 kilometers west of the Oyong oil & gas field in the same PSC.

A drill-stem test was conducted over the interval 1340-1365 meters. The well flowed at a rate of 18.5 million cubic feet per day through a 56/64" choke with a wellhead flowing pressure of 1071 psi. Condensate was produced at a rate of 4 to 5 barrels per million cubic feet. Like Oyong, the gas is sweet with no CO2 or H2S present.

"The results of Wortel-1 are encouraging, however further appraisal will be required to confirm the potential resource", said Santos' Managing Director, John Ellice-Flint.

Following completion of testing operations the Wortel-1 well will be plugged and abandoned as planned.

The Sedco 601 drilling rig will move to drill the Madi-1 exploration well in the neighboring Madura Offshore PSC and then, subject to partner and government approvals, return to drill the Wortel -2 appraisal well in October 2006.

The participants are Santos (Sampang) Pty Ltd as operator with 40.5%; Singapore Petroleum Sampang Ltd with 36%; Cue Sampang Pty Ltd with 13.5%; and PT Petrogas Oyong Jatim* with 10%; * subject to finalization of documentation

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