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First Santos Victorian Gas Production

First Santos Victorian Gas Production

Santos Limited has announced that it expects to commence its first Victorian gas production in June this year. This follows the completion of a gas sales agreement with the Victorian Governments Gascor Pty Ltd.

This is Santos first direct contract with a customer in Victoria.

Gas will be supplied from the Fenton Creek and Mylor gas fields. These fields are located near the town of Timboon in south west Victoria.

The contract is for 10.7 petajoules of gas and extends to the end of 2003.

Commenting, Santos Executive General Manager – John McArdle said:

While only involving a relatively small quantity of gas, this contract will provide additional flexibility for Victorian gas distributors in meeting peak winter demand.

It is in addition to the Cooper Basin gas which we sell to AGL, which is supplied to Victoria through the interconnect between NSW and Victoria. This also assists in meeting winter demand.

For Santos this is a milestone as our first production and our first direct sale in Victoria. Santos now sells gas in all Australian mainland states and the Northern Territory.

The Mylor and Fenton Creek fields are located in PEP 108, in which Santos has a 100% interest. Condensate will also be produced with the gas.

Santos is Australias largest onshore oil and gas producer. Its other major producing gas fields are in the Cooper Basin in South Australia and Queensland, the Amadeus Basin in the Northern Territory and in the Carnarvon Basin in Western Australia.