Santos Limited · ASX:STO
Santos — Investor Day (November 2005)
29 slides from Santos's investor day presentation, Nov 30, 2005
Slide 1: Exploration
Exploration a - feitete Jacques Gouadain Vice President Geoscience & New Ventures 20 November 2005 / New ventures (2 a Maximise value of core areas ao ee : existing assets i fy Superior aeroage
Slide 2: Basin evaluation
Basin evaluation Deep water capacity « Blostratigraphy Quantitative reservoir interpretation « Petrophysics & rack typing « Risk assessment « Reservoir modelling « Geophysical operations » Geoldgical operations 22 wells Discovered mean resource 7 Caldita | @, | & 2 s & = ws 5 g me Die seesueeonecnss
Slide 3: Ventures
Ventures Bi caitinieon Peli boos Established ‘eu 9 wells 2006 AD A BES, 6 wells 2006 2003 2005 2007 2009 2011 2013
Slide 4: Cooper Basin is mature but opportunities remain
« Cooper Basin is mature but Opportunities remain Small discoveries are Economic with existing infrastructure 3D seismic has changed the game 1.2 Icf added since 1991 2 exploration wells in 2006 to test new play bypes Hc aN wiguiee Legend & Exploration Production oO’ pipeline ‘Gas pipeline Ethane pi
Slide 5: Seismic activity
« Nov 2003 - May 2005 seismic activity « 2,217 lon? 3D acquired, $27.9 million (gross) spent * Nov 2005 - May 2006 seismic activity » 2,334 kim? 3D, 356 km 2D seismic to be acquired HVWWW5T}SGOT CTT Il Aegend & Exploration Production me Ol pipeline Gas pipeline bthane pipeline’ Basis GUUS Sorell Bas
Slide 6: Otway, Sorell, Gippsland and Duntroon basins
* Otway - Casino follow up « Sorell - high risk, high reward deepwater portfolio i a Gippsland - Patricia-Baleen oe : incremental value from infrastructure Duntroon - phased exploration approach to frontier arca » 100% exploration success to date with 3 gas discoveries » NFE tie back opportunities e
Slide 7: jan
jan ADU » Poterttial for large gas Risk sharing by farm out being finalised » Acreage position enhanced with 140/P award
Slide 8: Otway, Sorell and Gippsland Basin plans
» Otway Basin - Accelerate Casino production to maximise value * Drill ap low risk prospects and secure additional gas markets » Sorell Basin + 2006 2D seismic program to further delineate prospects ahead of drilling campaign > Oni large prospects commencing 2007 « Gippsiand Basin - Maximize the val
Slide 9: Houtman
Houtman Well to be drilled in 2007 « High grade acreage through continued regional assessment and play analysis . Significant follow up in the event Of success Legend 4a Exploration: Production Oil pipeline ® Basin outline:
Slide 10: Targeting mostly high value oil opportunities
Targeting mostly high value oil Opportunities « Continued high grading of acreage through regional assessment and play analysis Ainbing actiwity 2006: lets » Santos 33.4%, WA-191-P » Water depth 155 metres « Legendré/Angel Formations primary objectives 10
Slide 11: Mature a Brewster Sandstone wet gas play
« Mature a Brewster Sandstone wet gas play for drilling post 2006 * Continued regional assessment and play analysis with acreage high-grading around Brewster (ichthys) field « Implementing seismic and drilling programs both onshore and offshore « Proactively reviewing all near fleld opportunities »
Slide 12: Operations
Operations = Maximising the base + Exploiting the position «< SECAINING Tew projects « Products 4 Bereices « Customer value add Jon Young Executive Vice President Operations 20 November 2005 wee « Operational integri « Management systems # Behaviour and culture Reduced development costs: Resource to
Slide 13: Safety performance
han, Gross) WBS. 1903, 1088 = 2002 I 260s, G14. 2018 fi gS & ‘g 2 2 a ie Gi a G % a & » INbolé of Plant Risk Assessment « Drug & alcohol testing « DuPont & Shell reviews follow up Injury Frequancy Rate Hydrocarbon Spills 2003 BI04 AONE YTD 2003 2004 2008 YTD.
Slide 14: Production optimisation
tion 2P reserves development Production optimisation Improved uptime Plant capacity management a Cooper Gas Production Free Cash Plow (before tax) 2093 © 200A 2005 200L 2082) 2003 Targeting shallow oil New technology applied to old basin North American analogues Price reduces program tisk Capital of
Slide 15: Proven technology
Proven technology » 3D Seismic Le Cased hole iogging 2500 Batch fracture stimulation 2750 Glass Reinforced Epoxy lines = 2? Water flooding se = ASD: 125 New technology a i « Automated ight duty driling figs « Pattern drilling « Drilling with casing 5 e Modular faciity design JALBU = MERRIMELIA 1986
Slide 16: FPSO project delivery
Prior to M-E, no FPSO project FPSO Sanction t Start-up Duration had met its cost AND schedule pis AND operability objectives Buration (month) FPSO completed 10 months quicker than industry average and 3 manths ahead of taroet Topsides Design Throughput (kbbi/d) Subsea infrastructure costs at ON ae e
Slide 17: Producer and development wells
Be, basting Producer (2) 2006 Development Well [55] Future Appraisal Opportunity [_] 2005 Appraisal ell Santos 45%, Apache operated » 2P Reserves 1182 bcf gross Development cost ASU.25/mce » Cycle time 18 months Cirrent rate « 150 mmscid Second CO, train due year end
Slide 18: Appraisal results
Thomas Bright 3 » Exceeded pre-cdrill expectations » Proved southern extension to field Robert Addams 4 » In line with pre drill expectations « Proved northern extension to field « Proved deeper Horizon target Post-2005 Appraisal POO 9 Santos SU, Operated 2 2P reserves 270 bef « lindvalive dassaies
Slide 19: Casino tie-backs and CSG projects
LUNA @ Pre-investment allows for up to 4 additional | connections ace # Henry likely to be the first a i. tie-back to Casino ( — 77 Netherby. % Prospect %, i Pipeline jo Shore * (stated font c Nov 2005) i %, ay. , Casing-40W2. “re. Casino-5 Jegend @ Saritos acreage q ‘am Extent of Surat/Sowen Basing
Slide 20: Fairview asset
Santos 75.25% Operating control trom October 2005 World class coal Seam asset Fail field Gevelopment plan Gas contracting Cost management Exploration Cépital $94 million including pipeline 2009 2080 2014 202 G 2005 — 55 mmboe « Minerva Mutineer-Exeter John Brookes » Fairview 2006 — 10% increase * Ba
Slide 21: Supplier rationalisation
Supplier rationalisation Infrastructure capacity management s Significant headcount reduction Production casts (SA/boe) Production cost (GAm) Og, — Prod cast (GA/Dos) BOA 2005 2006. Onshore Ges Other Gas 7 met Oi) ‘Onshore Gao. ml Osher cas ny Mn Advanced Fraccing Techniques | Through the drillbit W
Slide 22: Cooper Basin continues to deliver significant cash flow
« Cooper Basin continues to deliver significant cash flow « Cooper ail program to commercialise discovered resources « New projects streamed successfully and integrated into core business « Rapid commercialisation, development and intearation of Faipiew CSG «implementation of new technology enables
Slide 23: Gas Commercialisation
Gas Commercialisation Rick Wilkinson Vice President Gas Marketing and Commiercialisation 30 Noveriber 2005 « Largest domestic gas producer « Largest contracted "Eastern OLD | reserves position D Eastern QLD (Bouroe: Aci 7003) ‘ Gippsiand Snes
Slide 24: Eastern Australia demand
1995 2000 7605 210 2015 Eastern Australia demand Major chemical, minerat and power projects could drive demand higher ‘Queensland projects are a strong driver
Slide 25: Eastern Australia demand and channels
c Do i Eastern Australia demand High Demand Scenario —__ 2007 2000 2611 2018 2015 a7 2009 ling ¢ infrastructure « Gas hubs * Major'retaiiers ¢ Third party * Second tier + East Qid/ Fairview utilisation retailers « Gippsia ° Virtual » Industrials « PNG and northern ~ Swaps « Power generation gas ~ Po
Slide 26: Geography no limitation
Geography no limitation » (SG to southern markets « Portfolio supply Ua Infrastructure accelerates new discoveries - Henry through Casino infrastructure Ethane supply to Qenos - Liquids value for gas Eastern Australia market share ~ high case
Slide 27: Large resource
Large resource Comparatively smalf ? i i ae domestic market (hc) 2P Reserves High LNG market od Grey KO Kens.
Slide 28: LNG prices
A995 A997. 1999 2004 2005 AQOT 2009 » LNG prices continue to climb ahead of domestic prices « Dry gas such as Gorgon is not carried by liquids » Economic penalty for not exporting gas |s increasing Price Index 2001 «2002 2003 200d =2005 | 2006
Slide 29: Gas Supply Coverage
Gas Supply Coverage # Activities in all producing basins Infrastructure Leverage » Physical hubs operational e Virtual hub opportunities Channel Options « Optionality with Santos Direct e Relationships with new retailers, industrials and electricity generators