Oyong-3 Confirms Oil

Santos Ltd announces that the Oyong-3 appraisal well has penetrated a gross oil column of approximately 19 meters in good quality reservoir.

Oyong-3 is located approximately 2 kilometers east of Oyong-1 on the eastern flank of the structure, in 41.3 meters of water. It reached a planned total depth of 1125 meters with the top of the Mundu Formation reservoir being penetrated within the oil column, approximately 20 meters below the gas/oil contact seen in Oyong-1 and –2. Two cores were cut in the reservoir.

Wirelogs run in Oyong-3 in conjunction with pressure information, have indicated an oil water contact the same as that encountered in Oyong-1 and –2, indicating a gross oil column in the Oyong structure of approximately 38 meters.

The Oyong-3 well will be suspended for potential future production and the drilling rig released. The Joint Venture is planning a 3D seismic survey to be acquired early in 2002 to assist with studies of potential development.

Participants in the Sampang PSC are Santos (Sampang) Pty Ltd. as Operator with a 45% interest, Coastal Indonesia Sampang Ltd. with a 40% interest and Cue Sampang Pty Ltd. holding the remaining 15%.