SANTOS LIMITED — Capital/Financing Update 2005

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

July 19, 2005

AWE's Henry-1 encounters gas shows

Australian Worldwide Exploration Limited, on behalf of its wholly owned subsidiary Peedamullah Petroleum Pty Ltd ("AWE"), advises that the Henry-1 exploration well, located in VIC/P 44 has reached its total measured depth of 2.100 metres. At 0600 hours today, Henry-1 was working stuck pipe, which occurred while pulling drill pipe out of the hole prior to commencing wireline logging operations. Following completion of logging activities, the well will be plugged and abandoned as planned. Progress for the week was 1.620 metres.

Preliminary analysis of the mudlog and measured-while-drilling (MWD) logs indicate that the well has encountered approximately 18 metres of gas bearing sandstone in the primary target horizon, the Waarre Sandstone. The extent of the gas shows is in line with the pre-drill expectations.

Wireline logging operations and analyses will need to be undertaken to establish whether Henry-1 can be declared a wildcat gas discovery.

Henry-1 is located approximately 8.5 kilometres north-west of the Casino gas field, where two successful gas development wells were recently completed.

Participants in VIC/P 44 are:

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