Slide 1: Santos Limited: Delivering Growth Investor Presentation
Santos Limited Delivering Growth Tnvestor Presentation September 2005 This presentation contains forward jooking statements that are subject to risk factors associated with the oll and gas industry. 7 is believed that the expectations réflected in these statements are reasonable, but they may be aff
Slide 2: Overview
Overview Focused Growth Strategy Enhancing existing core areas Maturing emerging Core areas identifying new core areas Why Santos? « Commenced operdtions tn 1954 « Australia’s largest domestic natural gas producer _ 500 mmcid gas 50,000 bbl/d liquids » 1600 employees « Market capitalisation U5$5.6 b
Slide 3: ; peice
; peice sydney fie \. & -Gippsiand Legend . s0batt: Basin QUuiie: ecthane pipeline: Production NPAT Operating Dividend (mobos) {ASm) Cashflow (cents) (A$m) s 2005 full year 55 trimboe up 1 /% * 2006 at least 10% above 2005
Slide 4: Legendre start-up
Legendre start-up | i Bayuindan sanction tron ‘Tipperary acquisition Novus acquisition Ps a Mutineer-ixeter sanction B-U liquids start up dohn Brookes sanction 12% CAGR o~,
Slide 5: Domestic gas franchise and core competencies
ourbase _ = Domestic gas franchise Ness a Core competencies through Exploration Acquisitions generation §=—__ Cost leadership e Gas commercialisation Production optimisation Disciplined capital allocation management » Strategy Unchanged for last 4 years « Continually reviewed, remains relevant conve
Slide 6: "Hub and Spoke" strategy
"Hub and Spoke” strategy interests in/all major supply basins Extensive infrastructure position Acquisition of OMV Cooper and Gippsland interests « Tipperary coal seam gas acquisition to complete 04 2005
Slide 7: Casino and Sole project updates
* 50%, operator * 2P reserves 27) bef » Capex $200 million » Construction 63% complete with 10 2006 on-line target « 90 mmefd contracted production « Henry 1 discovery to supplement Sige — Casino . a « Additional exploration potential fons 2 subsea wells » 45%, Apache operated « 2P reserves 1182 bcf
Slide 8: Mutineer-Exeter project update
«33.4%, operator « 2P reserves 61 mimbbis « Capex $440 million, 10% under budget « Commenced production March 2005, 3 months early » Averaged 72,000 bopd In Q2 » Continues to perform well « Rapid payback — = « Successful appraisal at Mutineer 11 XE matrix, stilton, Hector :Yangste; Maya; Galex; Cosm
Slide 9: Darwin LNG / Bayu-Undan
Camarvon.. Contingent Resources foutlloe 0.6%, ConocoPhillips operated « 2P reserves 3.8 tcf, 530 mmbbis » Capex USS2.2 billion « Liquids recycle on stream since early 2004 at 100,000+ bpd * First LNG 10 2006 » Ramp up to 3 MI /yr » Strategic infrastructure position » Exploration drilling at Caldita
Slide 10: Indonesia core area established
ore Area Established Acreage i Acquisition TE & Evaluation j East Java Kutei North Bali » 45%, operator o2P reserves 128 bef, 6.3 mmbbis « Capex approx US$120 million « First phase: oil production to start early 2006 » Development dniling in progress « Second phase: gas likely 2007 10
Slide 11: Oyong project
Ne « 75%, operator «2P reserves 241 bct » Capex US975 million « Start-up second half 2006 # Gas sales agreement signed » Gas reserves sold for electricity « Production up to 110 mmicfd + 3D seismic survey acquired « Data being processed » [we to tiree wells planned to be drilled during second half N
Slide 12: Jeruk discovery and appraisal
Jerk? discovery deruk 2 appraisal Jeruk 2 re-entry. 3D seismic accuisition 8D seismic processing AD seismic interpretation New appraisal deitting « Appraisal Grilling may extend through to late 2006 » Early production concept design continues in parallel a Field development AMT gas export/disposat f
Slide 13: Acquired 50% operated interest in Dongdala PSC
Acquired 50% Operated interest in Dongdala PSC’ » Taree wells drilled YTD « Discovered gas and ail at Hiu Aman ® 2006 exploration and appraisal drilling program in preparation Legend We Bast outing A. Explorations 13
Slide 14: US and Egypt exploration
« Gas prices reflect energy Value « Testing material prospects * Bobcat offshore Texas due to commence » Results will shape future Strategy Onstiore Texas Gul Coast Suialiow Water Offshore Texas “4 Exploration Production Devon operated Four exploration areas. North Qarun recently awarded. Fight well
Slide 15: Recent farm in and upcoming activity
Recent farm in Staged work program 2005 to 2008 16,500 kny2 in 10 Diocks Operator, earning 80% equity « Casino gas Oyong gas * Bayu-Undan LNG * Jeruk early production « Oyong oit Henry « Maleo gas Sole Cooper oil » Kipper « Coal seam gas Mutineer-Exeter near expansion field exploration « Stag water
Slide 16: Growing production profile
« Growing production profile - 55 mmboe in 2005, at least 10% increase in 2006 « Active development portfolio > John Brookes commissioned September 2005 » Four new projects on stream In next 15 months » Multiple gas commercialisation options = 15 billion bod of contingent resources e Attractive appr
Slide 17: eee ee
eee ee ae ee ee, Gules Gas os Sane See ee rrrrhLLULU eee a tere a oo a oe eee isi [es joe : Anft ast UCTUTe) eum Legend Santis sercoue Ol Field as field Gas Pipeline 17
Slide 18: Sensitivities and capital expenditure
US dollar oil price US$1/bbl $A/SUS exchange rate 1 cent Interest rates 1% Exploration Delineation Development Acquisitions 18
Slide 19: Half-year profit reconciliation
£05: (27) Ll Exploration Non ‘Expensed recurning trams”: Operating items. Non recurring 1) Hall 2004 Adjusted Recurring 1) Hall 2005 AY Half 2004 Pront adiin (0.63) i 0.36 Coste = Liquids a a b Sas Prices 1798 ve cas Uauids Prices Volumes. Moomba Volumes Incident 1 Hall 2004 1 Halt 2005. 19
Slide 20: Half-year drivers and cost savings
1th Laguids 355 Be 2 Bee Prices ' Nolumes bricac Moomba Incident 1S Halt 2004 A> Halt 2005: OSE Pf Supply & contracting Drilunig Organisational redesign Engineering initiatives Shared business services Other savings G1 Ohex actlal savings 20
Slide 21: Realised prices and exchange rate
Realise Oil Price (053/561) 49.67 Realised Oil Pace (AS/bb)) 67.11 Santos Average Gas Price A¢/G] 3.53 AS/US$ Exchange Rate 7401 (after hedging) 21 31.70 4542 3.21 69.78