SANTOS LIMITED — Capital/Financing Update 2003

Voyager Energy Limited

News Release Monday 14 July 2003

VOYAGER TO INCREASE CASH RESERVES THROUGH THE SALE OF THE NOCKATUNGA PROJECT IN SOUTHWEST QUEENSLAND

Voyager Energy Limited advises that it has reached agreement with Magellan Petroleum Australia Limited for the sale of Voyager's 40.936% working interest in the Nockatunga oil project in southwest Queensland.

The cash sale consideration will be A$2.0 million, with an effective date of 1 July, 2003. Settlement is expected in early August.

The sale is subject to a right match by to. project operator, Santos Limited, execution of a formal sale and purchase agreement, and related joint venture and statutory approvals.

At completion, Voyager will have in excess of A$3.0 million cash at bank and expects to be continuing to cash flow from derive production testing of the Jingemia oil field. This field is anticipated to be on full

production in early 2004 with Voyager's net production approximating 250 bopd, a rate almost double what the company has been receiving from Nockatunga.

Voyager has decided to sell what it considers has been a well performed, cash generating asset primarily to focus its capital resources on its growing Perth Basin oil field development and exploration projects. Voyager has a 5.0% equity in the 20 to 30 million barrel, offshore Cliff Head oil discovery that is progressing well towards formal declaration of commerciality in the third quarter of this year and a 6.27% interest in the approximately 5 million barrel. onshore Jingemia oil field.

Commenting on the transaction, Voyager's Managing Director John Begg said;

"Cycling out of Nockatunga in this manner puts us in a strong position to fund our way through all of our Perth basin commitments to the point of project financing of the Cliff Head oil development, which we anticipate mid next year. This should include at least three exploration wells. Alternatively we are in a strengthened position to create and take advantage of new business opportunities that are consistent with our business plan."