Santos Makes Indonesian Gas Discovery

Santos as Operator of the Madura Offshore PSC situated southeast of Madura Island, East Java, announces a new gas discovery resulting from the Maleo-1 wildcat exploration well. Maleo-1, drilled on the flank of a large four-way dip structure, encountered a 48 meter gross gas column between 555 meters and 603 meters in the Early Pliocene Mundu Formation limestone. The reservoir is well developed and net pay is in excess of 95%.

Cased hole flow testing of Maleo-1 is currently being conducted. The well has been cased and perforated and is currently on clean-up flow. Santos' Managing Director, Mr. John Ellice-Flint said "The Maleo discovery is well situated, approximately 7 kilometers from existing gas pipeline infrastructure supplying Surabaya, enhancing the chances of commerciality. Further appraisal activity is required to determine the resource potential of this discovery."

Drilling of the Maleo-1 well follows the Oyong gas and oil discovery made in the Sampang PSC in August 2001 and the subsequent farm-in to the Madura Offshore PSC. Santos contributed 100% of the dry hole cost of the well to earn a 75% interest in the Madura Offshore PSC. Maleo-1 is located approximately 140 kilometers east of Surabaya in 58 meters of water.