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Summary

McIntee 1

The Santos Group, as Operator for PEP 154 announces the discovery of a new gas field in the Victorian section of the Otway Basin.

The exploration wildcat well McIntee 1 has intersected a 16.5m net gas column in the Cretaceous Waarre Sandstone over the interval 1539.5m to 1556m.

The McIntee 1 well is located 10km west-northwest of the Mylor 1 gas well and 14km west-northwest of the Heytesbury Gas Facility.

McIntee 1 reached a total depth of 1803m and is being further evaluated by wireline logs.

The proximity of the discovery to the recently constructed Heytesbury Gas Facility will allow early connection and sale of the discovery. Currently Mylor 1 and Fenton Creek 1 are on production through the Heytesbury facility.

McIntee 1 is the first well of a four well program in PEP’s 153 and 154.

The participants in the McIntee 1 well are:

Santos Group

90% (Operator)

Beach Petroleum NL

10%