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Summary

Kau 1 Exploration Well

Kau 1 Exploration Well

Santos Limited advises that the Kau 1 exploration well located in the Warim PSC of Irian Jaya, 11 kilometres southeast of Digul 1 has been plugged and abandoned.

The well reached its planned total depth of 3183m. Encouraging indications of hydrocarbons were intersected but hole conditions prevented the full evaluation by wireline logging of the prospective sandstone sections and the well was subsequently plugged and abandoned.

It is anticipated that a follow up well will be drilled to further evaluate the section intersected at Kau 1.

The Warim PSC license holders who participated in the Kau 1 well are as follows:

Conoco Warim B.V. 80.0% (Operator)

Santos (Warim) Pty Ltd 20.0%

The Kau 1 well was drilled on a ‘tight hole’ basis under waivers granted on 2 December 1996 to the Santos Group by the Australian Stock Exchange from Listing Rules 5.4 and 5.5 and subsequently extended to 30 June 1998.