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Summary

Challum 19

Santos Ltd, as Operator for the South West Queensland Unit, announces a successful new pool gas discovery well in the Queensland sector of the Cooper/Eromanga Basins.

The development well, Challum 19, flowed gas at 212,380 cubic metres per day (7.5 million cubic feet per day) through a 13mm (0.5″) surface choke from a Pre-Permian carbonate reservoir over the interval 2339m – 2367m.

Challum 19, which was drilled to develop gas reserves in the Permian Toolachee Formation, made the discovery in a section previously not proven to be prospective. This first discovery of gas from Pre-Permian carbonates opens up a play concept for the Challum field and adjacent areas.

Challum 19 is located 22km west of the Ballera Gas Centre and some 0.8km north east of Challum 1.

The well will be cased and suspended as a future gas producer.

The interests of the Producers in the South West Queensland Unit are:

Santos Group

60.0625% (Operator)

Delhi Petroleum

23.2000%

Origin Energy

16.5000%

Oil Company of Australia

0.2375%