September 22, 2008

Santos Offshore Acquires 100% Interest in WA-4-R Permit

Santos, an Australian oil and gas exploration and production company, has announced that its subsidiary, Santos Offshore, has purchased a 100% interest in the WA-4-R permit offshore Western Australia, which contains the majority of the undeveloped Spar gas field.

The Spar gas field is located in the Carnarvon Basin, offshore Western Australia. The field extends into WA-13-L, in which Santos has a 45% interest.

The field is estimated to contain 600 petajoules of gas potential with associated condensate of up to eight million barrels. Santos will evaluate various options to develop the field in the short to medium-term.

The permit has been purchased from the Gorgon Project joint venture participants who have determined that the Spar field was unlikely to form part of the proposed Gorgon LNG project. The terms and conditions of the sale are confidential. The transaction is subject to customary approvals including registration and transfer of the permit interest.

In addition, Santos, as a participant in the Barrow Island Joint Venture, has agreed an access regime to facilitate the Gorgon Project Joint Venture's plans for liquefied natural gas (LNG) processing and export from Barrow Island with geosequestration of reservoir CO2 into the Dupuy Formation.