SANTOS LIMITED — Capital/Financing Update 2007

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STOCK EXCHANGE ANNOUNCEMENT

6 September 2007

MAITLAND-2 SPUDS

Pan Pacific Petroleum NL advises that drilling of the Maitland-2 well commenced this morning (WST)

The Maitland-2 appraisal well is located in Permit WA-33-R in the Carnarvon Basin, W.A.. This well is designed to further appraise the potential of the Maitland gas field within the area of Retention Lease WA-33-R, through the evaluation of a stratigraphic trap defined by seismic amplitudes.

The Maitland gas field was discovered in August 1992 with the drilling of Maitland-1. One appraisal well, Maitland North-1, was drilled in January 1996 and contains gas and condensate in the Paleocene-aged Maitland sandstone. The field appears to be a low relief stratigraphic trap. The top porosity of the Maitland sandstone is associated with a decrease in acoustic impedance on the seismic data.

The Maitland gas field has remained undeveloped for the past decade for two main reasons. Firstly, the two earlier wells flowed gas at relatively low rates and also produced sand. Secondly, the permeability and well deliverability encountered at that time were low when compared to other nearby offshore gas fields.

Based on new analyses performed by Apache Energy Limited (the present operator of the joint venture), it is estimated that the Maitland gas field has a gross gas column thickness of at least 23m. The Maitland-2 appraisal well now under way, is planned to conduct a complete test of the whole prognosed gas column, through the drilling of a side track well to collect 2 cores for reservoir quality and permeability studies and a 500 metre horizontal well to allow deliverability studies to be carried out.

Pan Pacific Petroleum NL has 10% equity in WA-33-R.

Other participants are: Apache Oil Australia Pty Ltd (Operator) 48.82%, Santos (BOL) Pty Ltd 18.71% and Tap Oil Limited 22.47%.

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K M Ware Company Secretary

Pan Pacific Petroleum NL ACN 000 749 799 Level 3, 88 Walker Street, North Sydney 2060, Australia Telephone: +61 2 9957 2177 Facsimile: +61 2 9925 0564 www.panpacpetroleum.com.au