Slide 1: 2006 Full Year Results
2006 Full Year Results John Ellice-Flint - Chief Executive Officer Peter Wasow - Chief Financial Officer 22 February 2007
Slide 2: Full year highlights
H2769 ae 12% i ls 204 2005 2006 Zoo Wh 2000 Les eee B Underlying AS683in a 7% 4 | SG a Reported AS643m1 is A$6.41/ob! Bie 819 mmbot iets 1000 800 B 600 CD ao 200 tl zi 200s 2006 5004 2008 | Gone 2004 72005 2606 Les, TREES 2004 2005 2006
Slide 3: Santos asset portfolio and Lapindo mud flow
« Santos 18% non-operated interest » Mud flow commenced May 2006 « Response effort managed by a Nationa! Mitigation Team « Financial impact remains uncertain s Evans Shoal « Caldite/Barossa © Petrel/ Tern « Reindeer » Hides « Barikewa « Elevala Australia Onsho 733 mmboe « Fairview Rome « Hig Aman »
Slide 4: Reserve Replacement
Reserve Replacement Ratio * Netback
Slide 5: Net profit after tax drivers
(0.4) Ss Cyclone PAD ART: _ Mutineer Natural New: Exeter decline: projects: Controllable Items lacs Wik: Gas Pricey IN elie DI Continuing Operations 2006 04 so OF pe beck Expin USA Dens Continuing Operations 2006.
Slide 6: Reserve replacement and netback
Syrave {US$} 2003 2004 2005 2006 2005 = 2006 Prose TERRE: 443% 3yi ave RRR 16296 Lor growin 14%: Byr CAGR 15%
Slide 7: EPS and ROCE
EPS OROCE CIEBETDAX per shaje mien Target man | AEGEU 2005 2006 iy aun ii 2 (40) — 3: - 6 Significant Operating Exploration Significant items Performance and items Evaluation Expensed: 0 2005 NPAT 2005 2006 2006 NPAT tindertying Underlying
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Slide 9: Volume
Volume Continuing Operations ( a B92 (24) 668 (8) Reserves lnp/ Revisions Obier — VOIUME East Spar: Future SHutan Costs: A005 2006 2006 $10.02/boe $14.35/hoe Continuing tea a A AT [De
Slide 10: Exploration and development expenditure
Exptoration Delineation Development 2005 [) 2006 Total $9591 $1,306im ape 005; ‘As reported After significant seems Production ad Growth Reserve Replacement Ratio Reserve Replacement 2007 Forecast $1,180m Aax change a ‘Moomba § incident. 10
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Slide 12: Ability to execute low cost program
Ability to execute fow cost program Initial rate per well (bbl/d) Fullecycle F&D Cost (AG/bbh 13% 120 18 Largest onshore Australian oil atredge position: 27 D00km2 mogern 10s ang technology ko inctease Facto Unique capabilities, knowledge, infrastructure and short cycie time 79% 12
Slide 13: Barrels per day (Santos share)
Barrels per day (Santos share) 2004 2005 | Gas demand growing strongly, PNG gas project suspended CSG emerging to fill market demand ele 2009 Large uncontracted gas position, demonstrated contracting capability Established leading position in CSG 13
Slide 14: Santos Contracted Share
Santos Contracted Share 2006 2008 2010 2012: 2014 2016 » Slrong competitive advantages » Highest qualtty acreage » industry leading capability » Existing infrastructure = Largest onshore operator Lepend 2 Santos acreage (ae Extent ot Srat/Bowen Bastis. Sates CSG piralects, ‘Othier producing CSG proj
Slide 15: Global gas prices rising
Global gas prices rising if Integrated Fairview acquisition Added 380 BJ of 2P reserves Finding cost of 7c/G] laScota Cl Farvew » Dried 40 wells » Capex AS124 million Installed Fairview to Wallumbilla pipeline Jey WA gas market has id {0 $54 Demand for emai burher growth expected at yom, Reindeer de
Slide 16: John Brookes ramp-up
UU e John Brookes ramp-up _ 200 PJ uncontracted 2P reserve » Reindeer follow up Opportunity / 300-500 PJ resource « Peasibility study underway - Fipst production target 2010 Ti/day Sales I @ Carnarvon Basin 2007 wells Fletcher Totem » buUrricane appraisal + Mutineer appraisal John Brookes dea Batrow
Slide 17: ExxonMobil progressing PNG LNG evaluation
» ExxonMobil progressing evaluation of LNG development incldding Hides field + & to 6.5 mtpa LNG plant « First cargos target 2012-2013 Santos share 6+ mmiboe pa « Other Santos pesources + 43% and operator of Barikewa ~ 50% and operator of Elevala » In total — 362 mmboe contingent resource in) PNG Ba
Slide 18: Material acreage position
Material acreage position * Appraisal ongoing * @+ tcf resource Aligned with ConocoPhillips 3.5 (6 6 mina train First cargos 2013+ Focussed, long term wision required for success 2006 new country entry t Vietnam Santos ‘ConccoPhiltips (Op) Sank ‘Stelt: Kelometres Legend Gi Santos Acreage U. Gas eld
Slide 19: Blackbird and Dua oil discoveries
Blackbird and Dua oil discoveries « Accélerating scismic into Qt 2007, drilling into Q4 2007 » Commencing development planning Swan gas ficid development potential « Northern block secured » Oyong O2 2007 start-up Wortel gas discovery Development planning underway = Jeruk development studies ongoing
Slide 20: Attractive frontier basin
Attractive frontier basin Work program 1 exploration wed 2D and 3D seismic 2 Estimated cost A$90m Emerging market with sound enerdy fundamentals 2005 2007 2009 nd SMITA i IANA IMU un nD i eet Ganges-Brahmaputra ‘Delta legend Hl Santos Acreage Oi Gas field 2011 Pia) AGS AULZ BD EA Gos (Cooper Ol OWAO
Slide 21: Large scale, low risk opportunity
Large scale, low risk opportunity » UMGue competitive advantage * Acreage and infrastructure « Increasing gas production into higher price environment #« Neat fold exploration and appraisal Asian growth Reference Slides 21
Slide 22: Reference slides: Cooper Basin and CSG
Sutton Inte RAB OX it Fe ‘ey ear ee ae ella al a al pect las Jaf [ag One ce age aeeeaeesr eens SSS Se eee [oem er ee So ce i i [ewes ove | Ls | | ee eee SSS a er Se ee eT le (1000 well olany, | CSG (6 year plan) 2012-2013 22
Slide 23: Sales revenue, costs and expenditure
> AL al Sales Revenue Operating Costs Sales Volumes (mmboe) Exploration Delineation Development Acquisitions (before assumption of debt) oi 23
Slide 24: Delineation and production costs
| Delineation — Cooper Basin, Mutneer- Exeter, Jeruk, Dua, | Barossa, Timor Sea Seismic, Gnu, other Cosine, Ovore, ge | Other — Cooper Basin, Iv equipment i j oe Production costs Aariffs and tolls Royalties and Excise PRRI Gas Purchases Production Volume Operating Cost $/boe 24
Slide 25: Production cost movement
Increase in Noles, New ‘Acguisitions fields! Volume 2005 2005. Production Cost Continuing $6.59/boe Operations $6.68/boe Interest &. Tae 308 (203) 2006 2006 Continuing Production Cost Operations $6.41 /boe. i, ‘Working Calta (52) L__t 25
Slide 26: EBITDAX and sensitivities
1,838 424) (4 a04 oe Moomba incident: US dollar oil price AS/USS exchange rate Interest rates Volume: Uguids Prices: US$1/bbi 1 cent 1% 2,144 (80) 2006 EBITDAX co 2,064 USA: 2006 EBITDAX Continuing” Operations phew 26
Slide 27: Realised prices and forward looking statements
Realised Oil Price (USS /bb)) Realised Oil Price (A$/bb1) Average Gas Price AS/G AS/US$ Exchange Rate (after hedging) This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. 1. 1s believed that the expectations reflected in thé