Santos Limited · ASX:STO

Santos — Non-Deal Roadshow (October 2012)

54 slides from Santos's roadshow presentation, October 2012

1. Slide 1: Investor Presentation

   Investor Presentation October 2012 1

2. Slide 2: Disclaimer & important notice

   Disclaimer & important notice This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which cou

3. Slide 3: Santos overview

   Santos overview A leading energy company in Australia and Asia  Australia’s largest domestic Fergana Basin gas producer  Production of 0.6 bcf/day gas and 37,000 barrels/day liquids Bay of Bengal  Top-20 ASX listed company Phu Khanh Basin  Market capitalisation of Nam Con Son Basin US$11 billion

4. Slide 4: Santos vision and strategy

   Santos vision and strategy LNG markets Dual channel strategy LNG channel Domestic channel Strong Focused Australian Asian A leading base growth energy company in Australia and Asia A leading gas producer in high-growth markets 4

5. Slide 5: Delivering 80-90 mmboe of production by 2020

   Delivering 80-90 mmboe of production by 2020 11% production growth in the first-half of 2012 Upside potential Aust: Cooper shale, Amadeus, Zola, Production Winchester, Sole LNG: PNG LNG T3, Browse, Caldita/Barossa mmboe Asia: Chim Sáo upside, Bay of Bengal, 100 Fergana Basin, Indonesia CSG 90 Likely

6. Slide 6: Safety performance

   Safety performance A balanced focus on personnel and process safety Personnel safety Process safety TRCFR performance Safety critical compliance long-term trend (employees and contractors) 99.8% 100% Total recordable case frequency rate 95% (per million hours worked) 7 90% 6 85% 5 4.0 4 80% 2007 200

7. Slide 7: 2012 First-half overview

   2012 First-half overview  Safety: TRCFR 4.0  Highest first-half production in three years: 25.4 mmboe  Underlying profit up 20% to $283 million  PNG LNG and GLNG on track for first LNG in 2014 and 2015 respectively  The capital cost estimate for the GLNG project was increased to US$18.5 billion

8. Slide 8: Underlying half-year net profit up 20%

   Underlying half-year net profit up 20% 2012 Half-year result Change on 2011 first-half Production 25.4 mmboe 11% Sales revenue $1,493 million 27% EBITDAX (excluding asset sales) $876 million 18% Net profit after tax $262 million 48% Underlying net profit $283 million 20% Operating cash flow $728 mil

9. Slide 9: $6.8 billion of funding capacity

   $6.8 billion of funding capacity Balance sheet capacity to fund execution of business strategy and minimise financing risk Available liquidity Debt maturity profile A$ billion A$ million 8 1,800 7 1.2 1,500 6 0.8 5 1.9 1,200 4 900 3 2.9 600 2 300 1 0 0 2012 2014 2016 2018 2020 Beyond Cash Undrawn Un

10. Slide 10: Capex & production guidance

    Capex & production guidance 2012 capex $3.75 billion and production 51-55 mmboe Capex Production $billion mmboe 4 3.75 60 51-55 3.1 50 47.2 3 40 2 30 20 1 10 0 0 2011 Actual 2012 Forecast 2011 Actual 2012 Forecast Range GLNG PNG LNG EA WA&NT Asia Exploration 2012 capital expenditure guidance: 2012 p

11. Slide 11: Leading Australian domestic producer

    Devil Creek gas plant, Western Australia Leading Australian domestic producer 11

12. Slide 12: Strong demand for Australian gas

    Strong demand for Australian gas Demand set to quadruple by 2025; gas prices will trend towards oil-linked international parity PJ 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 LNG exports Domestic gas demand 12 Sou

13. Slide 13: Significant resource base in EA

    Significant resource base in EA Santos has 10,900 PJ of gas reserves and resources in Eastern Australia, excluding GLNG, and the infrastructure required to accelerate production Sales gas 2P 2C reserves1 resources1 Existing pipeline Santos assets Cooper 1,130 3,598 NSW CSG 1,141 2,768 Otway/Gippslan

14. Slide 14: Focused execution of unconventional strategy

    Focused execution of unconventional strategy Objective of Moomba-Big Lake REM shale appraisal: achieve gas flow to surface  Core acquisition, logs, minifrac and analysis  Dedicated vertical shale well (Moomba-191)  Specialised shale-specific fracture stimulation with micro- seismic monitoring to

15. Slide 15: Australia's first commercial shale well

    Australia’s first commercial shale well Moomba-191 flow at stabilised Moomba-191 Flowback gas rate of 2.6 mmscf/d  Flow-back commenced 27th July  Two-week flow-back completed with measured dry gas stabilised rate of 2.6 mmscf/d at line pressure  Assessing all technical data to understand signific

16. Slide 16: Multiple targeted projects continuing in 2012 and 2013

    Multiple targeted projects continuing in 2012 and 2013 Santos will continue to execute its unconventional strategy, whilst continuing to apply learning to optimise target selection and well design  Targeted projects addressing unconventional play sweet spots and technology: − Horizontal well trial

17. Slide 17: NSW Coal seam gas

    NSW Coal seam gas Gunnedah Basin coals are world-class, with appraisal program confirming confidence and known resources in excess of 12,000 PJ NSW CSG industry  $1.5 billion already invested  Over 1,000 potential new jobs  Significant local gas production for the first time  A low-carbon altern

18. Slide 18: WA: two domestic gas hubs

    WA: two domestic gas hubs Record WA gas production in 1H 2012 Winchester  Spar and Reindeer projects delivered in Hurricane 2011 on budget and schedule  Strong Santos production into Spar Reindeer attractive domestic gas market Zola Appraisal drilling planned for 2012/13 Varanus Island Dampier  H

19. Slide 19: Carnarvon Oil: Fletcher Finucane

    Carnarvon Oil: Fletcher Finucane Sanctioned 8 months after discovery, an industry-leading transition Project Fletcher Finucane Location Carnarvon Basin Santos interest Operator with 44% interest Project $490 million gross oil project description 3-well sub-sea tie-back to Santos- Fletcher 9.5” pipe

20. Slide 20: Browse Basin gas

    Browse Basin gas Prime real estate in a proven play  Well positioned Argus Territory of Ashmore & Cartier Islands WA-274-P - Material prospects WA-410-P Crown - All Santos operated WA-274-P Poseidon Ichthys - Liquids rich WA-281-P - Materiality could provide stand- Torosa Echuca Shoals alone develo

21. Slide 21: Material Timor Bonaparte position

    Material Timor Bonaparte position A critical region for Santos now and into the future Caldita Barossa Darwin LNG Evans Shoal Santos 25% Sold to Eni  Continued strong production NT/P69 Joint Barossa  35-day planned shutdown completed in 2Q Petroleum NT/P61 Development 2012; high facility uptime si

22. Slide 22: Growth in LNG

    GLNG plant site image, Curtis Island, Australia. First LNG is expected in 2015. Growth in LNG 22

23. Slide 23: Santos' unique LNG Portfolio

    Santos’ unique LNG Portfolio Darwin (Santos 11.5%) PNG (Santos 13.5%) Production since 2006 First LNG expected in 2014 GLNG (Santos 30%) Bonaparte (Santos 40%) First LNG expected in 2015 FLNG – targeting 2014 FID 23

24. Slide 24: New sources of LNG supply will be required to meet robust Asian demand

    New sources of LNG supply will be required to meet robust Asian demand 300 Demand 250 “Contestable Market” 200 Additional supply from existing projects1 mmtpa 150 Other2 Australia Contracted LNG 100 supply from Operational and Middle East Under 50 construction projects only SE Asia 0 2010 2015 2020

25. Slide 25: Asian LNG pricing

    Asian LNG pricing Three distinct gas pricing structures for long-term LNG contracts; Asia to remain an oil-linked market Gas-on-gas market Oil-linked market Henry Hub NBP Oil Product JCC-linked Henry Hub 25

26. Slide 26: GLNG: On schedule for first LNG in 2015

    GLNG: On schedule for first LNG in 2015 Upstream Pipeline LNG plant  On-track for over 500  420-km pipeline  Construction on wells drilled in the manufacture complete Curtis Island project areas by the  12 shipments received progressing on end of 2012 in Gladstone schedule  Targeting 1,000 well

27. Slide 27: Creating value for Santos shareholders

    Creating value for Santos shareholders Material value  Sell-down of 70% interest in GLNG to PETRONAS, Total and KOGAS captured pre-FID generated $3.3 billion in proceeds pre-FID  Binding 20-year off-take agreements with quality partners in Strong LNG PETRONAS and KOGAS off-take  Flexible contract

28. Slide 28: Compression capacity and gas purchases

    Compression capacity and gas purchases Investment in upstream facilities provides 890 TJ/day of compression capacity by end 2015; gas purchases to date provide a further 240 TJ/day GLNG net share compression capacity at the end of 2015 and gas purchases TJ/day Compression capacity Gas purchases 1,20

29. Slide 29: Fairview and Roma CSG fields

    Fairview and Roma CSG fields Consistently strong flow rates from Fairview wells Roma pilots in line with expectations Fairview Roma GLNG ownership ~79% 100% Total CSG wells 345 comprising: 105 comprising: drilled to end June  70 appraisal  30 appraisal 2012  275 development  75 development (incl

30. Slide 30: Roma field geology well understood

    Roma field geology well understood Santos has a long history operating in the Roma area Surat Basin Coal - Gas Content Fairway  Conventional gas >50 years  CSG pilots >8 years  Geological trend well understood − gas content − thickness − permeability Roma Combabula  On trend with APLNG and GLNG

31. Slide 31: Drilling rigs and wells

    Drilling rigs and wells Drilling capacity secured to meet forecast well requirements  Around 1,000 wells on-line by end-2015 out of a total well stock of 1,3001  450 wells drilled to end June 2012  Target of 70 wells in 2H 2012  250-300 wells per annum in 2013-15  Expect to maintain circa 300 w

32. Slide 32: GLNG plant site, Curtis Island

    GLNG plant site, Curtis Island 9 August 2011 32 August 2012

33. Slide 33: PNG LNG

    PNG LNG First LNG expected in 2014 on schedule  Hides drilling commenced late July  Piling, foundations and structural steel continue at Hides  Earthworks at the Komo airfield continue and pavement is underway  Offshore pipelay is complete  Over half of the onshore pipeline has been welded  Eq

34. Slide 34: Bonaparte LNG

    Bonaparte LNG BLNG building momentum; >2Tcf resource  Floating LNG with 2-3mtpa capacity  Santos 40%, GDF SUEZ 60% and operator  150 people working on the project  Preparing to enter Concept Definition stage of pre-FEED phase  Project remains on schedule: - FEED 2013 Petrel-7 appraisal program,

35. Slide 35: Focused growth in Asia

    Chim Sao FPSO, Vietnam. First oil was produced in October 2011, on schedule and under budget. Focused growth in Asia 35

36. Slide 36: Focused Asian portfolio

    Focused Asian portfolio Asia will contribute ~20% of Santos’ production in 2012  Asia’s growing energy needs are driving higher domestic gas prices  Established Indonesian business with strong track record of project delivery  Chim Sáo project in Vietnam delivered on time and on budget and produc

37. Slide 37: Indonesia – established business

    Indonesia – established business Strong base business in East Java with increased margins and incremental growth  Increased margins from rising Wortel Oyong Maleo domestic gas prices − New gas volumes sold at US$6 per Madura Island mmbtu with escalation Surabaya − Maleo gross production capacity 11

38. Slide 38: Indonesia – South Sumatra CSG

    Indonesia – South Sumatra CSG Santos farm-in to four CSG licences in South Sumatra  Leverages Santos’ CSG experience in Australia and operating experience in Indonesia  Farm-in agreement with Sugico gives Santos 60% equity and operatorship  Up to 60 metres of coal thickness identified  Licences

39. Slide 39: Vietnam

    Vietnam New oil production with upside unfolding Dua oilfield Chim Sáo north-west oil discovery Dua  Chim Sáo online in October 2011, development area production 30,000 bbl/day Chim Sáo oilfield − Potential for further upside Chim Sáo production  Dua development approved platform − Tie-back to Chi

40. Slide 40: Reference slides

    Reference slides October 2012 40

41. Slide 41: 2012 Guidance

    2012 Guidance Item 2012 Guidance Production (mmboe) 51-55 Production costs ($m) 610-640 DD&A expense ($/boe) 15 Royalty related taxation expense1 80-100 ($m after tax) Capital expenditure (including $3.75 billion exploration & evaluation)2 1 Royalty related taxation expense guidance based on an aver

42. Slide 42: Production up 11% as new projects on-line

    Production up 11% as new projects on-line Half-year production mmboe 30 27.6 26.7 25.4 25 24.2 22.9 20 15 10 5 0 1H 2008 1H 2009 1H 2010 1H 2011 1H 2012  2012 half-year production up 2.5 mmboe, primarily due to first production from Chim Sáo and record Carnarvon gas production following start-up of

43. Slide 43: Sales revenue increased by 27%

    Sales revenue increased by 27% Half-year sales revenue $million 1,600 1,493 1,384 1,400 1,174 1,200 1,091 1,024 1,000 800 600 400 200 0 1H 2008 1H 2009 1H 2010 1H 2011* 1H 2012 Oil Sales gas, ethane and LNG Condensate and LPG  Sales revenue up 27% driven by higher oil sales volumes and higher oil a

44. Slide 44: Production costs up as new assets on-line

    Production costs up as new assets on-line Production costs $million 600 543 556 532 537 500 400 286 266 261 296 300 200 335 257 266 276 260 100 0 2008 2009 2010 2011 2012 1H 2H  Higher production costs due to new assets on-line, higher maintenance costs and Bayu-Undan/Darwin LNG planned shutdown 

45. Slide 45: Eastern Australia

    Eastern Australia Cooper Basin recovering from flood impacts; early success with shale gas program  Steady production of Production EBITDAX 10.9 mmboe, with 26% oil (mmboe) ($million) and liquids 316 312  EBITDAX in line with first half 10.7 10.9 2011; higher production costs due to ongoing flood

46. Slide 46: Western Australia & Northern Territory

    Western Australia & Northern Territory Growth driven by record Carnarvon gas production in the first half Production EBITDAX  Production increased by 23%, (mmboe) ($million) driven by strong gas production 368 386 at John Brookes and Reindeer  EBITDAX up, driven by strong 9.2 revenue from new Rein

47. Slide 47: Asia Pacific

    Asia Pacific Chim Sáo drives higher oil production and EBITDAX  Production higher due to Chim Production EBITDAX Sáo and Wortel on-line, offset by (mmboe) ($million) lower Maleo gas production due 174 to the favourable price review  EBITDAX up 270%, with oil 4.4 comprising 32% sales volumes 3.9 (2

48. Slide 48: Underlying net profit up 20%

    Underlying net profit up 20% Half-year NPAT and underlying NPAT $million 600 504 500 400 304 283 300 280 262 236 198 210 200 102 95 100 0 1H 2008 1H 2009 1H 2010 1H 2011 1H 2012 NPAT Underlying NPAT  Half-year underlying profit up 20% due to higher liquids prices and volumes, offset by higher costs

49. Slide 49: Net profit reconciliation

    Net profit reconciliation Half-year net profit after tax $million 700 84 (52) (27) 72 (31) 600 7 (271) 504 500 400 (24) 300 262 200 100 0 1H 2011 Prices and Sales Production DD&A E&E Net finance Gain on sale Other 1H 2012 foreign volume costs costs and exchange impairment 49

50. Slide 50: Operating cash flow remains strong

    Operating cash flow remains strong Operating cash flow $million 1,600 1,385 1,273 1,253 1,155 1,200 759 572 736 800 656 400 728 626 681 499 537 0 2008 2009 2010 2011 2012 1H 2H  Half-year operating cash flows up 7% due to higher sales receipts, partially offset by higher operating costs 50

51. Slide 51: Capital expenditure

    Capital expenditure Capital expenditure $million (includes capitalised interest) 4,000 3,088 3,000 1,679 2,000 1,882 1,629 1,509 1,023 923 745 1,000 1,409 1,509 706 764 859 0 2008 2009 2010 2011 2012 1H 2H  First-half capex higher as investment in growth projects continues  2012 guidance unchanged

52. Slide 52: 2012 full-year sensitivities

    2012 full-year sensitivities Sensitivity Change NPAT impact A$m US dollar oil price +US$1/bbl +9 Gas price +10 cent/GJ +15 A$/US$ exchange rate +1 cent -8 52

53. Slide 53: 2012 exploration schedule

    2012 exploration schedule Santos Well name Basin / area Target Timing Interest % C&S, successful Tardrum Bowen CSG 50 CSG Beam-1 Carnarvon Gas 45 P&A Chim Sáo NW-1 Nam Con Son Oil 31.875 P&A Hoss-1 Carnarvon Oil 37.3 P&A Crown-1 Browse Gas 30 Drilling Indonesia CSG South Sumatra CSG 60 Q4 Van Der Wa

54. Slide 54: Contact information

    Contact information Head office Adelaide Andrew Nairn Ground Floor, Santos Centre Group Executive Investor Relations 60 Flinders Street Level 10, Santos Centre Adelaide, South Australia 5000 Direct: + 61 8 8116 5314 GPO Box 2455 Email: andrew.nairn@santos.com Adelaide, South Australia 5001 Telephone

Santos — Non-Deal Roadshow (October 2012) on 6ix