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

June 7, 2005

AWE's Casino-4 Drilling Report

Australian Worldwide Exploration Limited, on behalf of its wholly owned subsidiary Peedamullah Petroleum Pty Ltd ("AWE"), advises that at 0600 hours this morning the Casino-4 sidetrack, located in VIC/L 24, was running the completion, prior to conducting a clean up flow.

During the week, the production hole was drilled to a total measured depth of 2.404 metres. Progress for the week was 406 metres. Approximately 370 metres of near horizontal hole was drilled through the Waarre Sandstone reservoir and sand exclusion screens were run. Log data indicated the presence of good quality reservoir. Completion equipment is being run prior to conducting a clean up flow and suspending the well for future production.

Casino-4 is the first of a two-well drilling programme for the development of the Casino gas field. Upon suspension of Casino-4, the rig will move to drill the Casino 5 production well in the eastern part of the field, near the Casino-2 exploration well.

Participants in VIC/L 24 are:

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