SANTOS LIMITED — Capital/Financing Update 2003

3 April 2003

Santos' latest WA gas result exceeds expectations

Santos Limited has increased its gas resources in Western Australia's offshore Carnarvon Basin with a successful appraisal of the John Brookes gas field in permit WA 214-P.

Santos said the Thomas Bright-1 exploration well had upgraded the gross resource potential of the John Brookes field to up to 1000 petajoules (PJ) of gas.

Santos Managing Director, Mr Ellice-Flint, said the John Brookes field is close to existing infrastructure and that Santos is actively engaged in negotiations to commercialise the field.

"The Thomas Bright-1 result has exceeded our expectations," he said.

"The result has increased the expected gas volume by 25 per cent on our interpretation prior to drilling," Mr Ellice-Flint said.

The John Brookes field was discovered in 1998 with John Brookes-1, which flowed at 37 million cubic feet per day.

Thomas Bright-1 is located 2.3 kms southwest of John Brookes-1, 30 kms north-northeast of East Spar and 56 kms northwest of the gas processing facilities on Varanus Island.

The well intersected approximately 88 metres of net gas within the primary objective Basal Muderong/Upper Barrow target.

The successful result significantly increases the total hydrocarbon resources discovered and appraised by Santos in its Western Australian interests over the last twelve months.

WA 214-P is operated by Apache Northwest Pty Ltd. Santos currently has a 28.75 per cent interest in the permit.

Santos Ltd ABN 80 007 550 923

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.

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

Thomas Bright 1