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Summary

Deep Pool Discovery and Extension of Roti Field

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

The exploration well, Roti 2, has flowed gas and associated condensate at rates of 113,300 cubic metres per day (4.0 million cubic feet per day) and 36 kilolitres per day (223 barrels per day) from a new pool in the Permian Patchawarra Formation over the interval 2291m – 2327m, through a 13mm (0.5″) surface choke.

Commenting, Santos Queensland and Northern Territory General Manager Rod McArdle said:

“This second flow continues Santos’ run of successes in South West Queensland this year (Raworth #1 results were announced 1 February 2001). Roti is likely to be a modest size gas field with a resource potential of up to 20 billion cubic feet of gas. The reservoirs are rich in LPG and condensate with liquids yields ranging from 60 to 70 barrels of liquids per million cubic feet of gas. An appraisal well is proposed to be drilled in the near future and an exploration programme of seismic is in preparation to pursue the success and mature nearby leads”.

Roti 1 was drilled in 1996 and followed up by further seismic coverage, technical work and production testing. Roti 2 is the follow up well on the structure and is designed to appraise the Roti 1 producing zone on the eastern culmination (which was successful and has previously been announced) and, as a secondary objective, to explore for additional, deeper pool gas reservoirs interpreted to be present from seismic. The secondary objective has now also been successful with this Patchawarra discovery. Possibilities for drilling two further appraisal wells on the field are currently being assessed.

Roti 2 is located only 35km east of the Ballera Gas Centre and some 2km south east of the Roti gas field.

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

A flowline is currently under construction to connect Roti 1 to the South West Queensland gas gathering system. That flowline will be extended immediately to connect Roti 2, which is expected to be in production by the end of April 2001.

The interests in Roti 2 are:

Santos Group

60.0625% (Operator)

Delhi Petroleum

23.2000%

Origin Energy

16.5000%

Oil Company of Australia

0.2375%