Casino 2 Gas Found to be Non-commercial

Santos confirms that the exploration well Casino 2 has discovered non-commercial amounts of gas. The well reached a total depth of 2112 meters from rotary table (2087 meters below sea level) after penetrating two hydrocarbon bearing reservoirs, confirmed by initial wireline log analysis.

Evaluation of the well results will now commence to determine the significance of the Casino gas discovery. However initial evaluation suggests that the discovery cannot commercially support a stand alone development. The well was plugged and abandoned on October 7, 2002. The rig is expected to demobilize on October 10, 2002, weather permitting.

Santos is the operator of VIC/P44 with a 50% interest and Strike Oil holds the remaining 50%.