SANTOS LIMITED — Capital/Financing Update 2003

ASX re-Strike Discosal of VICP44 140703.doe

15 July 2003

Company Announcements Office Australian Stock Exchange Limited $4^{th}$ Floor 20 Bridge Street SYDNEY NSW 2000

Dear Sir

STRIKE OIL NL - DISPOSAL OF VIC/P44 INTEREST

Perilya has been advised by Strike Oil NL (Perilya 35.6%) that it has agreed with Australian Worldwide Exploration Limited (AWE) that AWE will acquire Strike's 50% interest in the VIC/P44 permit in the Otway Basin, Victoria, by:-

• paying to Strike an initial sum of A$1 million and assuming all liability for costs and $(a)$ expenses (not less than $7.5 million) relating to Strike's interest, including an expected appraisal well, Casino 3, in the Casino gas discovery; and
• $(b)$ electing, within 90 days of completion of the drilling of Casino 3, to either pay to Strike a final payment of A$22.5 million to acquire 50% of the permit or to retain 20% of the permit with Strike holding a 30% interest.

Santos Limited hold a 50% interest in the VIC/P44 permit and, as operator, are expected to drill the Casino 3 appraisal well before the end of the year.

Yours faithfully PERILYA LIMITED

JOHN TRAICOS Company Secretary