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Summary

Henderson-1: Santos USA Texas Gulf Coast Discovery

Santos Ltd. announces a new field discovery by Santos USA in the prolific Frio trend of South Texas, continuing Santos’ record of successes in the trend this year.

Henderson-1, located in Willacy County, was drilled to a total depth of 15,355 feet. It encountered multiple pay horizons logging 169 feet of net gas pay. The well flowed at 11 million cubic feet per day and 44.0 barrels of condensate per day at a flowing tubing pressure of 9950 pounds per square inch.

The well is currently shut-in awaiting pipeline connection, with first sales scheduled for early December. Santos and its co-owners own three- dimensional seismic data over the prospect and leases covering approximately 4,300 net acres in the immediate vicinity. The first delineation well designed to help quantify the size of the discovery is scheduled for drilling in early 2002.

Santos USA has a 25% working interest in the Henderson-1 well, operated by Suemaur Exploration & Production, LLC which has a 12.5% working interest.