SANTOS LIMITED — Earnings Release 2003

MOSAIC OIL N.L.

Australian Business Number: 56 003 329 084

3rd Floor 6-8 Underwood St. Sydney NSW 2000 Australia

Phone: (02) 9247 9324 International Phone: (612) 9247 9324 Fax: (02) 9241 1655 International Fax: (612) 9241 1655

AUSTRALIAN STOCK EXCHANGE AND MEDIA RELEASE

$6th$ March 2003

Mosaic steady as Churchie Gas line is readied.

Mosaic Oil N.L. has reported normal trading conditions for the half year to 31st December 2002 with a profit of $226,000.

Revenue was helped by higher oil prices but the price of LPG was lower than the corresponding period in 2001.

Directors have also announced that the five (5) kilometre Churchie 3 pipeline has been completed and will be connected to the Mosaic / Santos owned Wallumbilla to Silver Springs pipeline which supplies gas to south Queensland - when upgrading of that line is completed.

Directors advise that gas from Churchie 3 into the Queensland gas grid should flow before the end of March 2003 rather than in the June Quarter as previously advised.

A gathering station has also been completed at the Churchie Field with gas separation and dehydration capabilities.

Directors reported the net profit of $226,000 (December 2001: $385,700) on a turnover of $4,812,771 (Dec 2001: $4,782,810)

The full financial statutory accounts have been lodged with the ASX and will be posted on the Internet site www.mosaicoil.com later today.

Steven C. McDowell, Company Secretary.

For further information: Central Communications Public Affairs 02 9922 2244 - Don Willesee; or Dr Howard Brady, CEO, or Steven McDowell, Company Secretary, Mosaic Oil 02 9247 9324.