SANTOS LIMITED — M&A Activity 2007

Santos Ltd A.B.N. 80 007 550 923 Ground Floor, Santos House 91 King William Street Adelaide South Australia 5000 GPO Box 2455 Adelaide South Australia 5001 Telephone: 08 8218 5111 International: +61 8 8218 5111

30 January 2007

The Manager Company Announcements Office ASX Limited Level 4 20 Bridge Street SYDNEY NSW 2000

BY ELECTRONIC LODGEMENT

Santos CSG Pty Ltd ACN 121 188 654 ("Santos CSG") - takeover offer for Queensland Gas Company Limited ACN 089 642 553 ("QGC")

Status of Conditions

We attach, on behalf of our wholly-owned subsidiary Santos CSG, a notice under section 630(3) of the Corporations Act advising that:

• the Offer has not been freed from the defeating conditions set out in Section ۰ 11.7 of Santos CSG's bidder's statement dated 10 October 2006;
• so far as Santos CSG knows, none of these conditions has been fulfilled as at ۰ the date of the notice; and
• as at 9.00am today, Santos CSG's voting power in QGC was 3.89%. $\bullet$

W J Glanville Company Secretary