Jeruk Recoverable Reserves Seen at Less Than 50 Million Barrels

The Jeruk oil discovery is located in the Sampang PSC, offshore Indonesia, approximately 42 kilometers from the city of Surabaya.

As foreshadowed in Santos' ASX releases following the Jeruk-3 appraisal well (dated July 14, 2006 and August 2, 2006), technical work has been ongoing to integrate all well and seismic data to better determine the most likely oil resource range.

This analysis is now largely complete and while there are substantial remaining reservoir uncertainties, the upside recoverable oil resource for Jeruk is most likely to be less than 50 million barrels.

Opportunities to commercialize Jeruk are being pursued, however plans for additional appraisal drilling have been placed on hold pending the review of development scenarios and the resolution of commercial and technical issues which may potentially impact the viability of any development.

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