Santos Hits with Mutineer-3

The Mutineer-3 appraisal well was production tested of a 3-meter interval at the top of the Angel Formation oil reservoir. A maximum flow rate of 6600 barrels of oil per day was recorded through a 40/64-inch choke. The specific gravity of the oil was 42 degree API. Preliminary estimates of reserves for the field are around 80 million barrels of oil. The well location is approximately 2 kilometers southwest of the Mutineer-1B oil discovery well in approximately 160 meters of water.

Santos is accelerating its drilling program in the WA-191-P permit area where the Mutineer and Exeter fields are located. Next week Santos will start drilling the Exeter-3 appraisal well to assess the nearby Exeter field discovered earlier in the year. Current estimates place reserves at Exeter between 25 million and 50 million barrels of oil. Santos expects to make a decision in the first quarter of 2003 on the best way to develop the Mutineer and Exeter fields.

Particpants in WA-191-P are Santos as operator with 33.40%; Kufpec Australia Pty. Ltd. with 33.40%; Nippon Oil Exploration with 25.00% and Woodside with 8.20%.