SANTOS LIMITED — Capital/Financing Update 2003

AUSTRALIAN WORLDWIDE EXPLORATION LIMITED

ABN 70 077 897 440

Level 9, 60 Miller Street. North Sydney, NSW, 2060, Australia. PO Box 733, North Sydney, NSW, 2059, Australia

ASX Announcement

August 12, 2003

AWE joins Santos in Casino Gas Field

Australian Worldwide Exploration Limited on behalf of its wholly owned subsidiary, Peedamullah Petroleum Pty Ltd ("AWE"), is pleased to advise that documents formalising the previously announced transaction involving Vic P/44 have been finalised.

Following execution of a "Sales and Purchase Agreement" with Strike Oil NL, AWE has also executed a "Deed of Assumption" and a "Title Transfer" with Strike and Santos Limited to effect (subject to normal requiatory approvals) AWE taking a 50% interest in Vic/P44, offshore Victoria

Vic/P44 contains the Casino gas field, which has already been subject to 3D seismic coverage. a discovery well (Casino-1) and a further appraisal well (Casino-2).

AWE has accelerated discussions with the permit operator. Santos Limited, to enable the drilling of the Casino-3 appraisal well, which will be designed to prove-up commercial gas volumes as soon as possible.

Commenting on the transactions, AWE's managing director Mr Bruce Phillips said:

"If we are successful with the Casino-3 appraisal well, AWE will work very closely with Santos to commercialise the Casino gas field in the shortest possible time frame.

Discussions to that end are underway and we are pleased by the constructive relationship we are developing with the Operator."

Participants in Vic P/44, following completion of the transaction will be as follows:

Peedamullah Petroleum Pty Ltd Santos Limited (operator)

50.0% 50.0%

For further information please contact Mr Bruce Phillips (Phone: 02 9460 0165 or Fax: 02 9460 0176) Email: [email protected]