SANTOS LIMITED — Capital/Financing Update 2003

25 August 2003

Santos further expands its SE Asian exploration acreage

Santos Limited announces that it has been awarded additional exploration acreage in the off-shore East Java Basin by the Indonesian government.

The new Production Sharing Contract (PSC) area, North Bali 1 is located east of Java and north of the island of Bali. The block covers 3.449 square kilometers in water depths ranging from 100 to 970 metres.

The East Java Basin is considered highly prospective for oil and several substantial oil and gas fields have been discovered within the vicinity of the North Bali 1 PSC area.

The commitment work program for the PSC includes the acquisition of 2D seismic data and the drilling of one exploration well within the next twelve months.

"The award of the North Bali 1 block continues our strategy of building a portfolio of high-potential exploration opportunities and further consolidates our position in the East Java Basin", said Santos' Managing Director, Mr John Ellice-Flint.

Santos has a 100 per cent interest in the permit and is the operator.

Santos Limited is a major Australian oil and gas exploration and production company with interests in all Australian hydrocarbon provinces. The Santos Group also operates in the USA, Indonesia and PNG.

FOR FURTHER INFORMATION PLEASE CONTACT:

Media enquiries: Kathryn Mitchell Santos Limited (08) 8218 5260 / 0407 979 982 Investor enquiries: Mark Kozned Santos Limited (08) 8218 5939 / 0407 747 908

Santos stock symbols: STO (Australian Stock Exchange), STOSY (NASDAQ ADR)

Map attached

Santos Ltd ABN 80 007 550 923

Santos

North Bali 1 Production Sharing Contract Area

LEGEND □ Santos Acreage

Santos Ltd ABN 80 007 550 923 24 August 2003 File No: CORINV P211