SANTOS LIMITED — M&A Activity 2005

28 October 2005

Acquisition of Tipperary Approved

Santos Limited today announced that the shareholders of Tipperary Corporation (Tipperary) voted to approve the merger agreement providing for the acquisition of Tipperary by Santos.

This approval follows Santos' announcement on 1 July 2005 of the proposed acquisition, and on 5 July 2005 of Santos' decision to accelerate the acquisition of Slough Estate USA Inc's controlling interest in Tipperary. Under the terms of the merger. Tipperary shareholders will receive US$7.43 per share in cash.

The necessary merger documentation is being filed with relevant authorities in the United States for Tipperary to be delisted and become a wholly owned subsidiary of Santos.

The acquisition gives Santos an approximate 75% operated working interest in the Fairview Coal Seam Gas field, located north of Roma in Queensland together with over 4,000 $km^2$ of additional exploration acreage in the Comet Ridge area of the Bowen Basin.

FOR FURTHER INFORMATION PLEASE CONTACT:

Media enquiries:

Kathryn Mitchell Santos Limited (08) 8218 5260 / 0407 979 982

Investor enquiries:

Andrew Seaton Santos Limited (08) 8218 5157 / 0410 431 004

Santos stock symbols: STO (Australian Stock Exchange), STOSY (NASDAQ ADR), Ref #82-34 (Securities Exchange Commission)

Santos Ltd ABN 80 007 550 923