Santos Ltd ABN 80 007 550 923 Ground Floor, Santos Centre 60 - - PDF document

Santos Ltd ABN 80 007 550 923 Ground Floor, Santos Centre 60 Flinders Street Adelaide South Australia 5000 GPO Box 2455 Adelaide South Australia 5001 Direct: + 61 8 8116 5000 Facsimile: + 61 8 8116 6723

TO: Company Announcements Office ASX Limited FROM: Company Secretary DATE: 22 September 2011 SUBJECT: INVESTOR PRESENTATION September 2011 Please find attached a Santos Investor Presentation, which is being presented in Hong Kong during September, 2011. David Lim Company Secretary

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1

Investor Presentation

September 2011

Disclaimer and Important Notice

This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, geotechnical factors, drilling and production results, gas commercialisation, development progress,

• perating results, engineering estimates, reserve estimates, loss of market,

industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial markets conditions in various countries approvals and cost estimates

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various countries, approvals and cost estimates. All references to dollars, cents or $ in this document are to Australian currency, unless otherwise stated.

2

Santos overview

• One of Australia's leading

upstream oil and gas companies and has been

• perating since 1954

Regional footprint of operations

Kyrgyz Republic Hai Phong Basin

• perating since 1954
• Current production:
• ~ 600 mmscf/d of gas
• ~ 30 kbbls/d of liquids
• Employs 2,400 people
• 107,000 shareholders
• Top-25 ASX listed company:

market capitalisation

Key statistics (YE 2010)

Production Exploration

Otway Basin Bangladesh India Phu Khanh Basin Kutei Basin Nam Con Son Basin East Java Basin West Papua and Papua New Guinea Carnarvon Basin Browse Basin Timor Sea & Timor Gap Bonaparte Basin Amadeus Basin Cooper Basin Surat/Bowen Basins Gippsland Basin Gunnedah Basin

3

1P reserves 646 mmboe 2P reserves 1,445 mmboe Contingent resources 2,261 mmboe 2010 production 50 mmboe 2010 2P reserve replacement ratio 331% * p US$11 billion (Sept 2011)

• One of Australia’s largest

domestic gas producers and key stakeholder in Darwin LNG, PNG LNG, GLNG and Bonaparte LNG

Key statistics (YE 2010)

*2010 2P organic RRR

Santos vision and strategy

LNG Markets Strong

LNG CHANNEL DOMESTIC CHANNEL

A leading Focused Asian

4

Australian Base Strategic Domestic Gas positions in EA and WA g energy company in Australia and Asia Growth

3

Cooper to GLNG

Transforming to oil-linked pricing

70% of 1.4bn boe 2P reserves exposed to oil prices Asset base is transformed through sanctioned projects

80

Production (mmboe)

WA legacy d Asia domgas EA legacy domgas contracts NSW CSG LNG 20 30 40 50 60 70

Oil-linked Legacy domgas

5

Crude, Condensate, LPG WA oil-linked domgas & uncontracted domgas domgas contracts 10 20 2010 2011 2012 2013 2014 2015

Contingent resources of 2.3bn boe has a similar pattern Production exposed to oil price rises from 27% in 2010 to 70% in 2015

Safety performance

7

rate

Santos TRCFR performance

(Employees & Contractors)

1 2 3 4 5 6

• rdable case frequency r

r million hours worked)

2.6

6

1 2006 2007 2008 2009 2010 2011 YTD

Total reco (per

4

Working with local landholders and communities

• One of Australia’s largest gas producers, Santos has a 50-year

track record of safe, sustainable operations

• W

itt d t ki ith l l l dh ld d

• We are committed to working with local landholders and

contributing to communities

• We will work in partnership with agriculture for sustainable

resource management

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2011 First-half highlights

• Safety: 60% improvement in three years
• Reported half-year profit up 155% to $504 million

Reported half year profit up 155% to $504 million

• Two-train GLNG project sanctioned in January
• Halyard/Spar project on-line ahead of schedule
• Chim Sáo, Reindeer and Wortel projects on track for

start-up in the second half of 2011

• Exploration success at Zola and Finucane South

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p

• Strong balance sheet: $6.7 billion of funding capacity
• Proposed acquisition of ESG via recommended Scheme of

Arrangement and partnership with TRUenergy

5

Production 22 9 mmboe (5% )

Half-year net profit up 155%

Change on 2010 first-half

2011 Half-year result

Production 22.9 mmboe (5% ) Sales revenue $1,101 million 1% EBITDAX $1,089 million 66% Net profit after tax $504 million 155%

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Underlying net profit $236 million 12% Operating cash flow $681 million 27% Interim dividend 15 cents per share 7 cents

Strong balance sheet to fund growth

$6.7 billion of funding capacity Debt maturity profile Funding position ensures balance sheet capacity to:

• fund execution of business strategy
• minimise refinancing risk

2 3 4 5 6 7 A$ billion

$ g p y y p

600 800 1,000 1,200 1,400 1,600 1,800 A$ million

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1 2 Cash Undrawn corporate lines Undrawn project line (PNG LNG) 200 400 2011 2013 2015 2017 2019 Beyond 2020 Drawn facilities Euro subordinated notes Undrawn bank facilities The Euro subordinated notes mature in 2070. Santos has the option to redeem the notes in 2017. Charts as at 30 June 2011.

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GLNG FID signing ceremony, 13 January 2011 L to R: Mike Sangster (Total), Heung Bog Lee (KOGAS), David Knox, Datuk Anuar Ahmad (PETRONAS) 11

Growth in LNG

LNG is a key component of Santos’ growth strategy

Strategy Components PNG LNG Bonaparte LNG

• 2 mtpa FLNG

S t 40% ith t FID

Components Darwin LNG

• Production since 2006
• 3.6 mtpa single train
• Santos 11.5%

GLNG PNG LNG

• Sanctioned Dec 2009
• 6.6 mtpa two trains
• First LNG due 2014
• Santos 13.5%

Deliver the Base Business

LNG Growth

• Santos 40% with carry to FID

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GLNG

• Sanctioned Jan 2011
• 7.8 mtpa two trains
• First LNG due 2015
• Santos 30%

Focused growth in Asia

7

Strategy delivers material LNG growth

5

mtpa GLNG T1

Santos equity LNG production

from existing discovered resources

2 3 4

GLNG T1 GLNG T2 BLNG

13

1

Darwin LNG PNG LNG

Excludes PNG LNG expansion

2010 2020

Santos’ LNG customers and partners

PNG LNG

14

Bonaparte LNG Darwin LNG GLNG

8

$16 $18

Late 2006 2008-10

Asian Term Prices

Continue to see strong long-term LNG pricing

• Recent contracts point

to strong underlying

$6 $8 $10 $12 $14 Ex-ship LNG Price ($/MMBtu

Mid 2006 Late 2005 LNG Price ($/ MMBtu)

Oil Parity

US$12/ MMBtu

demand

• Pricing reflects new

supply-demand equilibrium

• Long-term Asia-Pacific

pricing remains oil- linked

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$2 $4 $6 $20 $30 $40 $50 $60 $70 $80 $90 $100 JCC ($/Bbl)

Source: Poten & Partners

Early 2005 2003 Ex-Ship

linked

16

GLNG

9

GLNG plant site, Curtis Island

17

LNG plant site schematic

9 August 2011 9 August 2011

GLNG material offloading facility site

18 9 August 2011

9 August 2011 9 August 2011

10

GLNG

• FID Jan 2011
• 7.8 mtpa, two trains

Construction progressing to schedule and budget

• Santos 30%
• LNG off-take agreements with

PETRONAS & KOGAS

• Clearing of LNG plant site on Curtis

Island 90% complete

• Bulk earthworks 20% complete
• Production of line-pipe commenced

First batch of GLNG line-pipe

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• Capital expenditure US$16 billion

gross includes US$2 billion in contingencies

• First LNG due in 2015

LNG plant site schematic

Culvert installation, Curtis Island

World-class GLNG contractors

Predominantly fixed price EPC contracting strategy

Project Component Description Contractor Contract Type Upstream surface facilities All coal seam gas and water gathering and processing infrastructure Cost-reimbursable performance incentive contract based predominantly on fixed unit rates Gas transmission pipeline 420-kilometre gas transmission pipeline from the gas fields to Fixed price lump sum turnkey EPC contract

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g Gladstone LNG Plant 7.8mtpa 2-train LNG plant plus associated infrastructure Fixed price lump sum turnkey EPC contract

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Beneficial use of CSG water

21

Santos GLNG President Mark Macfarlane with landowners Santos GLNG President Mark Macfarlane with landowners Ree Ree and Leon Price on their property. and Leon Price on their property.

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PNG LNG, Darwin LNG and Bonaparte LNG

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PNG LNG

• FID Dec 2009
• 6.6 mtpa, two trains

Progressing towards first LNG in 2014

• Santos 13.5%
• Four Asian LNG buyers
• Design for major EPC contracts

nearing completion, procurement well underway

• LNG train foundations, structural

steel and LNG tank foundations commenced

Line-pipe at Kopi shore base

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• Delivery of line-pipe nearing

completion

• Piling for marine jetty commenced
• First LNG due in 2014

Mubi River bridge, southern logistics route

PNG LNG plant site

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LNG plant site schematic

13

Bayu-Undan/Darwin LNG

Project Bayu-Undan/ Darwin LNG Location Timor Gap, Australia/Timor-Leste

Darwin LNG: continuing strong production

Santos interest 11.5% Partners ConocoPhillips, ENI, INPEX, TEPCO, Tokyo Gas Project scope

• Offshore gas & condensate fields
• Gas transmission pipeline
• Single train LNG plant at Darwin

Gross production capacity 3.6 mtpa of LNG ~ 100,000 bbl/d of condensate

Bayu-Undan offshore platforms

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LNG buyers

• TEPCO
• Tokyo Gas

Project status

• Commenced LNG production 2006
• LNG capacity upgraded in 2010 to

3.6 mtpa

Darwin LNG plant

Bonaparte LNG

Project Bonaparte LNG Location Bonaparte Basin, Australia

Innovative floating LNG project; Santos carried to FID

Santos interest 40% Partners GDF SUEZ 60% Project scope Floating LNG production Gross production capacity 2 mtpa of LNG proposed Project status

• Project teams in Paris and Perth
• Pre-FEED progressing on

h d l

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schedule

• Drilling underway on an

appraisal well at the Petrel gas field

• Santos carried to FID

FID Planned for 2014

Proposed floating LNG vessel and LNG tanker

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Drilling in 2012

Browse Basin

Territory of Ashmore & Cartier Islands

Crux Montara Keeling

Burnside

Poseidon

WA-281-P

Calliance Brecknock Argus Cornea Echuca Shoals Ichthys Caswell Ichthys North Adele Heywood Torosa WA-274-P Gwydion WA-274-P WA-410-P WA-411-P Legend Santos acreage Other acreage Oil field Gas field Indian Ocean

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Burnside Western Australia

Calliance Gwydion WA 411 P Arquebus

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Australia Domestic Gas

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Gas is under-utilised in Australia

Gas penetration as percentage of power generated

71% 70%

70% 80% 70% 80%

56% 43% 34% 27% 24% 20% 14% 13% 12%

10% 20% 30% 40% 50% 60% 70%

14% 6% 12% 17% 47% 48%

10% 20% 30% 40% 50% 60% 70%

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Source: Wood Mackenzie, EIA, ESAA, AEMO 2%

0% 10% Thailand Singapore Malaysia UK Hong Kong Japan US South Korea Australia Germany India China

6% 2%

0% 10% Australia NSW/ACT VIC TAS QLD SA WA

Unique portfolio of Eastern Australia gas supply

• ptions to meet higher demand
• Santos has assets in every

producing basin

Queensland

• Large resource base
• Low technical risk
• Moomba and associated

infrastructure offers platform to leverage growth

• Gunnedah location suitable for

next east coast gas supply hub

Pt Bonython New South Wales Moomba Ballera South Australia Surat/ Bowen Fairview, Roma, Scotia, Arcadia Gunnedah

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next east coast gas supply hub

• Santos access to Wallumbilla

infrastructure enables entry to LNG export projects at Gladstone

Oil pipeline Gas pipeline Legend Santos permits

250km

Victoria Gippsland Otway

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Moomba

TOOL DARA

Developed Conventional

Santos continues to explore Cooper Basin potential

• New state-of-the-art three-rig drilling fleet

commissioned in Q2 2011

Effi i i d d i d ill ti d f l ti

ROSE EPSI MTRE

Shale Gas Tight G

Conventional Undeveloped Unconventional Gross gas thickness ~ 1600 feet

• Efficiencies recorded in drill-time and fuel consumption
• Rigs built to suit infill drilling, as well as unconventional
• il and gas shales
• Shale core analysed from Moomba-185 well
• Results commensurate with US producing shale gas

basins

• Dedicated shale well planned for fourth quarter 2011

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PATC GRANI TE

Gas Deep Coal

Driller’s console & engineers on new drill rig

Proposed acquisition of Eastern Star Gas Ltd

• Santos to acquire 100% of Eastern Star Gas

Limited (ESG) (1)

• All scrip scheme of arrangement, unanimously

recommended by ESG Board recommended by ESG Board

• ESG shareholders to receive 0.06881 Santos

shares for every 1 ESG share held

• Values ESG at 90 cents per share, or A$924m (2)
• Represents attractive acquisition price of A$0.50

per gigajoule of 3P reserve acquired

• Sale of interests to TRUenergy
• Subsequent sale of a 20% working level interest

in ESG’s permits in the Gunnedah Basin

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p

• Payment to Santos of A$284m
• Formation of Santos/TRUenergy JV
• Santos to assume operatorship and increase its
• wnership in the ESG permits to 80%
• TRUenergy JV partner with 20% interest

(1) Santos presently holds 20.9% of ESG (2) Based on Santos’ closing price of A$13.23 on 15 July

Kahlua drill site, near Gunnedah, NSW

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Delivering strategic benefits to Santos

• Consolidates Santos’ existing

Gunnedah interests, resulting in S nto be oming l ge t holde of

New South Wales

Santos becoming largest holder of NSW CSG reserves

• Furthers Santos’ Eastern Australian

gas strategy

• Balance sheet strength

maintained, with cash payment from TRUenergy

• TRUenergy an ideal partner to

Gunnedah

PEL 434

Tamworth Scone Dubbo Narromine Narrabri

PEL 238 PEL 450 PEL 462 PEL 433 PEL 12 PEL 1 PEL 452 PEL 456

Newcastle

PPL 3 PAL 2 33

Legend Santos acreage* Santos and Eastern Star Gas* Joint Venture acreage Gas pipeline

• TRUenergy an ideal partner to

develop ESG’s permits in joint venture with Santos

Newcastle * Operator

WA Domestic Gas: Increasing Demand

Demand 2010 2020

Mining 20% 34% Electricity (SWIS) 30% 28% Alumina and Ammonia 41% 31%

3%

Onslow Dampier Port Hedland Alumina and Ammonia 41% 31% Residential/Commercial 9% 7%

15%

3% 3% 2%

Exmouth

2010 Demand by location*

• Expect demand to increase from 960 TJ

per day (2010)* to 1,230 – 1,535TJ per day (2020)*

• Asian demand for WA mineral exports is

driving energy demand growth in WA Mi i h i ifi l

34

9%

3%

29% 27%

PERTH Bunbury Kalgoorlie

• Mining sector growth significantly
• utpaces other sectors. Iron ore is the

key driver

• Growth expected across the market in

absolute terms

* Source: Santos

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Santos supplies gas via one of two existing hubs and one new hub under construction

Hub-led strategy

Varanus I s. John Brookes Halyard /Spar Reindeer

Indian Ocean Focused NFE

Legend Santos acreage Oil field Gas field Oil pipeline Gas pipeline

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Varanus I s. Devil Creek /Spar Spar

Western Australia

Gas pipeline Gas hub

Halyard/Spar, WA

Development of Halyard (WA-13-L) and Spar (WA-4-R)

Project Halyard/ Spar Location Carnarvon Basin, offshore WA Santos interest 45% Partner Apache 55%, operator Project scope

• Tie-back of Halyard and Spar

wells to Varanus Island via existing East Spar pipeline

• Modifications to John Brookes

platform Gross production capacity 50 TJ/day (Halyard) 100 TJ/day (Halyard + Spar)

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John Brookes platform with Spar wing deck module

Project status

• First stage (Halyard well)

commenced production in June 2011 ahead of schedule and on budget

• Second stage (Spar well)

expected online in 2013 First gas 2 June 2011

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Reindeer/Devil Creek, WA

Reindeer/Devil Creek – WA’s new domestic gas hub

Project Reindeer/ Devil Creek L ti C B i ff h WA

Reindeer wellhead platform

Location Carnarvon Basin, offshore WA Santos interest 45% Partner Apache 55%, operator Project scope

• Unmanned, minimum facility

wellhead platform

• 105-km pipeline to shore
• Devil Creek gas plant

Gross production capacity 215 TJ/day (Devil Creek gas plant)1

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Devil Creek gas plant

Project status

• All offshore installation work

complete

• Pipelay complete
• Devil Creek gas plant

pre-commissioning underway First gas On schedule for fourth quarter 2011

1 Gross processing capacity of Devil Creek gas plant. Plant is initially planned

to operate at 120TJ/d sales

Zola discovery

• Zola-1 successful gas test of

Triassic horst block on trend from Go gon field

Significant gas discovery in strategic location

Indian Pluto Wheatstone

Gorgon field

• Over 100m of net gas pay over a

400m gross interval in excellent quality reservoir

• New high resolution 3D recorded

and being processed

• Follow-up appraisal drilling

scheduled in 2012

Devil Creek Dampier

Varanus Island

Western Australia

Indian Ocean John Brookes Maitland Spar Gorgon

Zola 1

WA-290-P

East Spar 38

scheduled in 2012

• Santos increased its equity to

24.75% pre-drill

Legend Santos acreage Oil field Gas field Oil pipeline Gas pipeline

20

Finucane South discovery

• Finucane South-1 oil discovery
• 18 metre net oil column in excellent

Oil discovery with quick cycle time to first production

WA-191-P

Fletcher Mutineer Exeter

Angel formation reservoir sands

• Proximity to Fletcher oil field

supports a dual-field development

• Potential tie-back to existing FPSO

at Mutineer-Exeter

• FEED studies well advanced
• FID targeted for early 2012

Dampier

Varanus Island John Brookes

Finucane South

Perseus Goodwyn Reindeer North Rankin Angel Indian Ocean Maitland

39

g y

• First oil by the end of 2013
• Santos 33.4% and operator

Western Australia Dampier

Devil Creek

Legend Santos acreage Oil field Gas field Oil pipeline Gas pipeline

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Asia Pacific

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Chim Sáo, Vietnam

Chim Sáo – New oil production for Santos

Project Chim Sáo Location Block 12W, offshore Vietnam Santos interest 31.875% Partners Premier 53.125% , operator PetroVietnam 15% Project scope

• Unmanned, minimum facility

wellhead platform

• Liquids processing and export via

FPSO

• Gas export via 100-km pipeline

Gross production 25,000 bbl/day

Chim Sáo FPSO Lewek Emas

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capacity Project status

• Wellhead platform and field

pipelines installed

• Development drilling program

and FPSO conversion continue in accordance with project schedule First oil On schedule for September 2011

Indonesia: Maleo and Oyong

• Maleo

Maleo performing beyond expectation; Oyong Phase 2 delivered

O

• Production since 2006
• Gross gas production ~ 115 TJ/d
• Long term sales gas contract to

PT Perusahaan Gas Negara

• Oyong Phase 1 (oil)
• Production since 2007
• Gross production ~ 2,400 bbl/d

Madura Offshore PSC East Java Madura Island

Grati Processing Plant 50km

Surabaya

Sampang PSC

Maleo Oyong Wortel

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Gross production 2,400 bbl/d

• Oyong Phase 2 (oil and gas)
• Production since 2009
• Gross gas production of

~ 60TJ/day

• Gas sales to PT Indonesia Power

Bali

Legend Santos acreage Oil field Gas field Oil pipeline Gas pipeline

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Wortel, Indonesia

Wortel – Third operated project in Indonesia

Project Wortel Location Sampang PSC, offshore East Java, Indonesia Indonesia Santos interest 45%, operator Partners SPC 40% Cue Energy Resources, 15% Project scope

• Unmanned, minimum facility

wellhead platform

• 10-km gas pipeline to existing

Oyong platform

• Gas export via existing 60-km

pipeline to Grati

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pipeline to Grati Gross production capacity 90 TJ/day from combined Oyong/Wortel fields Project status

• Jacket and deck fabrication

progressing on schedule First gas On schedule for the end of 2011

Oyong wellhead platform

Bay of Bengal

• Bangladesh

Potential for medium term exploitation business in Bangladesh and long term business in India

India

• Chittagong gas market significantly

undersupplied

• Sangu well optimisation is extending

field life

• Free market gas rights obtained for

Magnama

• Three-well drilling program to

commence in Sangu in 4Q 2011

Bangladesh Burma India NEC-DWN-2004/2 NEC-DWN-2004/1 Block 16

Bay of Bengal

Sangu

44

• I ndia
• Targeting material gas prospectivity

for domestic market

• 3D seismic program largely complete
• Work programme on hold pending

border resolution

Legend Santos acreage Oil field Gas field Oil pipeline Gas pipeline

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45

Reference Slides

2011 Guidance is unchanged

I tem 2011 Guidance

Production 47 – 50 mmboe Production costs $550 – $590m DD&A expense $12 – 13/boe Royalty related taxation expense (after tax)1 $80 – $100m Capital expenditure (including exploration & evaluation)2 $3 billion

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1 Royalty related taxation expense guidance for 2011 assumes an oil price of A$90 per barrel for the remainder

• f the year.

2 Capital expenditure guidance for 2011 includes $2 billion for LNG projects, $400 million for other sanctioned growth projects (Reindeer, Spar, Chim Sáo, Wortel and Kipper) and $150 million for conventional exploration. Excludes capitalised interest.

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Well Name Basin / Area Target Santos I nterest

%

Timing

2011 Exploration schedule

Zola-1 Carnarvon Gas 24.8 Gas discovery Cana-1 Gunnedah CSG 25.0 CSG discovery Finucane South-1 Carnarvon Oil 33.4 Oil discovery Tuy Hoa-1X Phu Khanh Oil 50.0 Q3 Tardrum-4 Bowen-Surat CSG 50.0 Q4 Tonderburine-1 Gunnedah CSG 100 Q4 Green Hills-1 Gunnedah CSG 35.0 Q4

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South Sangu Exploration Bay of Bengal Gas 100 Q4 Sangu Exploration Bay of Bengal Gas 100 Q4

The exploration portfolio is continuously being optimised therefore the above program may vary as a result of rig availability, drilling outcomes and maturation of new prospects

Reported and underlying profits

600

Reported NPAT Underlying NPAT

$m

198 504 71 (42) 17 (18) 210 (2) 236

200 300 400 500 600

48

100 200 HY- 2010 HY- 2010 HY- 2011 HY- 2011 Other Prices & foreign exchange Sales volumes Royalty related tax Net finance income

25

(0 8)

mmboe

Production lower due to GLNG sell-down

• Santos interest in GLNG

production reduced from 60% to 30% following

Production

24.2 (0.8) 0.4 (0.9)

5 10 15 20 25

60% to 30% following the sale of interests to Total and KOGAS

• Higher Bayu-Undan

production due to shutdown in previous first half

• J bi

Ch lli d

22.9

49

5 HY-2010 HY-2011

• Jabiru Challis and

Legendre ceased production in 2010

• Full-year 2011 guidance

unchanged at 47 to 50 mmboe

GLNG sell-down Bayu- Undan Discontinued assets & downtime

Sales volumes and revenue

3.5 5.5

20.0 30.0

Third party products mmboe

• Higher commodity prices
• ffset by stronger AUD

Sales volumes

1400 HY-2010 1,091 Liquids prices 162 Gas prices 22 FX (95) Volume/mix (79) HY-2011 1,101

$m 25.0 22.1

• 10.0

HY-2010 HY-2011

Own product1

• Higher volumes of third

party products offset lower own product volumes

• 595k bbl crude oil

underlift in first half expected to be recovered i d h lf

Sales revenue

50

200 400 600 800 1000 1200

HY-2011 HY-2010

in second half

• Third party products

revenue $144 million

1 Includes gas from storage

26

Production cost and cost of sales

800

Total cost of sales Cash production costs

300

$25.11 $24.70 / b

$m $m

$11.44 / boe $11.37 / b

200 300 400 500 600 700

Third party product purchases Cost of produced hydrocarbons1

100 150 200 250

$260m $276m / boe / boe / / boe $576m $634m $117m $70m

51

100 200 HY-2010 HY-2011 50 HY-2010 HY-2011

1 Includes production costs, tariffs, tolls and pipeline costs, royalties, inventory and DD&A

Business unit EBITDAX

350 400

HY-2010 HY-2011 $m 368 302 372

50 100 150 200 250 300

Corporate and other includes gains on sale of assets of $348 million in HY-2011

300 287 302 47 65

52

50

Eastern Australia WA&NT GLNG Asia Pacific Corporate and other 2 13 (12)

Eastern Australia | Higher product prices and tolling revenue partially offset by lower liquids volumes WA&NT | Lower production costs and higher other income, offset by lower liquids volumes GLNG | Lower revenue and production costs offset by FX loss due to GLNG sell-down Asia Pacific | Lower product sales revenues due to stronger AUD and lower liquids volumes,

• ffset by higher liquids prices

27

DD&A

• Higher DD&A primarily due

to asset additions and year

300

277 Rate 21 Volume (12) 286

$m

end 2010 reserve revisions

• Partially offset by impact of

lower production volumes

• Full year 2011 guidance

unchanged at $12-13/boe

100 150 200 250

53

50

HY-2010 HY-2011 $11.45/boe $12.49/boe

EBIT 766 283

Interest and tax

Half-year

Half-year

2011

2010

$m

66 83 Net finance income Interest income 100 55 Interest paid (110) (26) Less borrowing costs capitalised 63

• (47)

(26) Unwind of the effect of discounting on provisions (19) (19)

54

Total net finance income 34 10 Profit before tax 800 293 Income tax expense (239) (81) Royalty-related taxation expense (57) (14) Net profit after tax 504 198

28

2011 Sensitivities

Sensitivity Change NPAT Impact A$m US dollar oil price + US$1/bbl + 9 Gas price + 10 cent/GJ + 17 A$/US$ exchange rate + 1 cent

• 8

55

Contact Information

Head office Adelaide Ground Floor, Santos Centre 60 Flinders Street Andrew Nairn Group Executive Investor Relations Level 10, Santos Centre Adelaide, South Australia 5000 GPO Box 2455 Adelaide, South Australia 5001 Telephone: + 61 8 8116 5000 Facsimile: + 61 8 8116 5050 Useful email contacts Share register enquiries: web.queries@computershare.com.au , Direct: + 61 8 8116 5314 Email: andrew.nairn@santos.com Nicole Walker Investor Relations Manager Level 10, Santos Centre Direct: + 61 8 8116 5302 Email: nicole.walker@santos.com

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q p Investor enquiries: investor.relations@santos.com Website: www.santos.com