Santos Limited · ASX:STO
Santos — FY2005 Earnings Presentation
29 slides from Santos's earnings presentation, Feb 23, 2006
Slide 1: Strategy on Track: 2005 Full Year Results
Strategy on Track 2005 Full Year Results 23 February 2005 This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. Ls believed that the expectations reflected in these statements are reasonable, but they may be affected by a ran
Slide 2: % Gp 15'
% Gp 15'
Slide 3: 2P Reserves
iP Reserves 414 mmboe 3: Santos
Slide 4: 2005 highlights
Hurneane, Hiv Aman, Henny, Caldita, Firebird, Greenmount, Yamaia Mutineer-Exeter, John Brookes on line Bayu-Undan LNG, Casine, Qyong, Maleo progressed Jerk, John Brookes, Mutineer, Cooper oil Moarmiba control system upgrade, Cooper oil performance, insurance claim finalised Established leading posit
Slide 5: Reserve Replacement
Reserve Replacement Ratio. *** 140% i target Bid (3.4) Hl (11) G9) — | & Moomba . ee = New: Incident : Shutdown Natural: Projects decline’ : Acquistions/: Divestrients
Slide 6: Production and prices
Bit) B01 2107 OSE 24.78. Moomba Liquids incident Prices 2002 «2003 «2004 2002 2003 2084 2005
Slide 7: Reserve replacement ratios
Dyr RRR. 218% dyt RRR 334% Byt ave RRR 16506 Byt AVE RRR 141% A yt growth 3726 3 Yr CAGR | 179% eee NT fi S YEQ2 Produced Reserves YEQS YEO? Produced Reserves eserves. Or added eserves: PESOS | Or added divested divested 100% 5% 50% 25%. O%.
Slide 8: EPS and NPAT
700 600: 500 400 300 200 EPS ELERITDAX ner share | 2004 2005 2004 2005 Significant Exploration Heme Experised: 355 (46) Significant Operating Performance: 2004 NPAT 2004 2005 2005 NPAT reported Normalised Normatised reported
Slide 9: EBITDAX
ie BE in OTT 0 ll ii) Wm) up (28) 1805 34 1820 — EIT Moomba Incident Liquids Gas Prices: Prices 2005 EBLIDAX
Slide 10: EBITDAX and exploration
(5) G2 = i Other Nolume Iniparment Moomba Reversal thadent Reserves East Spat. Revisions: SHUEID & FOC ag) (16) my — 2004 2005 $10.08/boe $10.02 /boe 25 wells, Exploration 25) 22 wells, 7 discoveries Delineation Mutineer Beater, ‘Stag, Cooper Basin, Relniew, Casing, Byong, Malco Mutlnser-Exeter, Bay
Slide 11: Tax change and strategy
Tax change Moomba incident. Ke reported Atter significant fhems. ; Production Reserve Replacement 7 Ratie. Reserve: Replacement: Co Enharice existing core areas - Mature emerging core areas Adentify new core areas 1i
Slide 12: Core areas strategy
n hereage position Identify New Core Areas + Disciplined strategy Seeking new Multiple tests 7 options to extend Time to deliver the growth profile ji Mature Emerging Core Areas ® TWO NeW Core areas ‘Captured growth Multipie discoveries a ‘options for the near: : > +» Strong acreage and rid term nha
Slide 13: Cooper Basin gas development
Saritas 71.66% NBL, operated Hae Net 2P reserves 143 minbdoe Oe 14): Phase -Bhmase £6 . 2 phase development plan » 2006-2011 capex $440n1 gross ($340m net) 200 new wells » Incredse gross capacity to 200 Tijd 2006 program = 20 to 24 wells, new compression, export pipeline, $105m grass (694m net) ~ By
Slide 14: Cooper Basin oil
Over 700 mmbbi resource « New technology in mature basin > 3D seisnic « Moder drill rigs - Progressive Cavily Dumps Anticipated program metrics « AS18/bbI find & develop cost + 50 bbls net reserves/well « 1,000 wells dependent on outcome based funding ¢ 29 wells drilled during 2005 80% success rate
Slide 15: Drilling and Casino project
* First fig operational » Second rig March 2006 Drilling «100 wells in 2006 - Capital of $160m (net) = Targeting 2P reserves [JRE of 6-7 mmbbbl « Further $110m : contingent on Success 70 wells, 4-5 mrnbbl targeted $l Santos Acreage = pil Pipaling Gos Pipelirie 50%, operated e 2P reserves 290 bef gro
Slide 16: Oil and gas project updates
33.4%, operated On-line ahead of schedule & below budget » Well performance better than expected in 2005 » Facility Uptime in excess of 98% Currently producing «50,000 bbls/d (gross) 3 development wells in 2006, production outlook driven by: = Water cut - Timing of new wells > ESP performance - Cyco
Slide 17: Onshore Australia and PNG gas
‘iil ; es 4 wells : onshore Australia Legend E2005 Discoveries @ 2006 Wells = Ob Pipeline Gas Pipeline Ethane Pipeline Papua Mew Guinga Gas 60H «391 mmboe contlagent resource ; inclading 2596 of hi <LNG infrastructure « Exploration success & acreage: « MUl Ft contingent: resources: New core area, ma
Slide 18: Bayu-Undan LNG and Caldita
10.6%, ConocoPhilips operated » 2P reserves 3.8 Icf, 509 mmbbis liquids (gross) » Capex ~USS3 6 billion (gross) Liguids recycle producing 100,000 4 bpd First LNG February 2006 3.5 Mt/yr LNG initial capacity 2 Vp to 8,000 kine of Se 3D seismic may be CongcoPhilips (Op) 604 acquired Caldita - Plover/E
Slide 19: Kutei Basin
Kutei Basin 3-witdeat: weils'in 2005: Hiv Aman gas/condensate discavery » 40.5% operated s Shallow water (42m), deep structure (=4500m subsea) 3 to 4 appraisal wells planned for 2006 » Jeruk 3 spudded January 2006 » Potential to commence phased development in 2007 Gas teld 2 Oh Pipeline Gas Pipeline
Slide 20: Jeruk Re-entry
Jeruk 2 Re-entry 3D Seismic Acquisition 3D Seismic Processing 3D Seismic Interpretation frets » 40.5%, operated 2P reserves 66.5 bef, 5 mmbbis (gross) » Capex US2130 million (gross) First phase: Oil production targeted Q2 2006 Development drilling has revealed complex structure » Second phase: gas G
Slide 21: Maleo and Popodi PSC
* 67.5%, operated » 2P reserves 240 bef (gross) Capex US$55 million (grass) Start-up second half 2006 » Gas sales agreement signed Gas reserves sold for electricity Production up to 110 mmicfd Close to Bontang LNG plant - Werld’s largest with chronic supply shortfalls On trend with major oll/gds dis
Slide 22: Hiu Aman Selatan
50%, operated » Follow up to successful Hiu Aman Wet gas discovery Water depth 1,742 metres Miocene sandstone primary objective MP cron | Nee Hiv Aman Selatan i Hig Aman 1 HigAman Selatan 1 iu Legend B Baon autlice 22
Slide 23: Kyrgyzstan and exploration outlook
Kyrgyzstan 2005 new country. ent ese RA0@:rertional studies and-seismi ing regional studies, math likely. new country in’shallow. sta i ‘ z 2006 planning 435 3 ‘Gypt ' ' Devon acreage, CD Gore areas ied ‘3.dry holes, 2006 planning 4 wells * POCis areas us o & Aveas of interest WT Neos 6 interest wat
Slide 24: Production guidance
AMI LAAN 6 guidance mp 2007 guidance 62 to 63 mmboe 24
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Slide 26: Reference slides
Reference slides Wali (nin: é i Se i 6 ee = = fC foe eee ee a E S| 26
Slide 27: Realised prices and capital expenditure
Redlised Oil Price (US$/bb) Realised Oil Price (AS/bbI) Average Gas Price A$/Gi AS/USS Exchange Rate (after hedging) Exploration Delineation Development Fh Ea Acquisitions (before assumption of debt) 27
Slide 28: Operating costs and profit
Operating costs: Depletion & depreciation Other revenue Exploration & evaluation Unpairment Foreign currency ‘Otherexpenses Finance costs Net profit before tax Tncome tax expense 1501 (527) (447) 208 (19) a 6 (59) eT EO Increase in Volumes 47. Moomba: Ticident New 281. Fields/ Volume: Acquisitions 2
Slide 29: Sensitivities
674 GO) (20) — Other Working ARES Captal interest &. Te% 134 Moomba Tneident 736. US dollar oil price US$1/bbl AS$/USS exchange rate Pcent Interest rates 1% 29