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Barossa Gas Project: Learn more

Capital Management Update

On 17 October 2001, Santos Limited (“Santos”) announced its intention to undertake an off-market share buy-back of up to $250 million and to issue a minimum of $250 million, and up to $350 million, in Reset Convertible Preference Shares (“Preference Shares”). The issue of Preference Shares is subject to approval by Santos shareholders at an EGM to be held on 20 November 2001.

Santos has today entered into an underwriting agreement with Merrill Lynch International (Australia) Limited for the issue of $250 million in Preference Shares and has lodged both the Preference Share prospectus and buy-back offer booklet with ASIC, in anticipation of both the Preference Share offer and the buy-back offer commencing on 7 November 2001.

The preferred dividend rate for the Preference Shares will be fixed until 30 September 2006 at the greater of 6.50% per annum or the five year swap rate on the allotment date plus a margin of 1.20%. Santos expects the dividend payments to be fully franked. This dividend rate has been set based on strong support for the Preference Share offer received from institutional investors.

Anyone wishing to participate in the Preference Share issue will need to complete the application form that will accompany the prospectus. Shareholders with registered addresses in Australia will be mailed a copy of the prospectus with a personalised priority application form on 5 November 2001.

Non shareholders can register for a printed copy of the prospectus by calling the Santos Information Line on 1300 555 541 or visiting the Santos website (