SANTOS LIMITED — M&A Activity 2007

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Registered Office: Level 4, 19 Arbour Court ROBINA TOWN CENTRE OLD 4230 AUSTRALIA (PO Box 3366)

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Ph: $(07)$ 5562 0077 $(07)$ 5562 0011 Fax: Web: www.iconenergy.com Email: [email protected]

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29^th May 2007

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The Manager Companies Announcements Office Australian Stock exchange Level 4, 20 Bridge Street Sydney NSW 2000

Dear Sir,

Re: Santos to purchase interests in ATP 765P and 766P

Icon Energy Limited is pleased to report that Santos has agreed to purchase the remaining interests of Icon in ATP 765P and 766P for a consideration of \$4,500,000.

These funds will allow Icon to proceed with the drilling of Stitch No.1 as soon as possible and provide additional capital for exploration of the new permits added to Icon's portfolio of exploration tenements in Australia.

A Purchase and Sale Agreement is being drafted now and completion is expected before the end of June 2007.

RS James Icon Energy Limited

Alfames

Managing Director