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Summary

Merindal 1

Santos Ltd, as Operator for the Merrimelia-Innamincka Block, announces the discovery of a new gas field in the South Australian section of the Cooper/Eromanga Basins. This follows the successful Nephrite 1 well in the South Australian section of the Cooper/Eromanga Basins, announced last week.

The exploration well, Merindal 1 flowed gas at 137,355 cubic metres per day (4.85 million cubic feet per day) with 123 barrels condensate per day from reservoir sands in the Early Triassic, Nappamerri Formation over the interval 2196-2207m. The test was run through a 13mm (0.5) surface choke.

Merindal 1 well is located 5km southeast of the Bookabourdie Field and approximately 65km northeast of the Moomba gas plant. The well is near existing facilities and will provide an early connection opportunity.

The well will be cased and suspended as a future Gas/Condensate producer.

Commenting on the find, Mike Hannell, General Manager of the South Australian Business Unit said:

“This field discovery represents another successful exploration find in the South Australian sector of the Cooper/Eromanga Basins since the announcement in February 1996 of the $200 million accelerated exploration programme in South Australia”.

The participants in the Merindal 1 well consequent upon the Agreement to adopt fixed factors in the South Australian Cooper Basin (announced 9/12/96) are:

Santos 56.16720%

Delhi * 0.0000%

Boral Energy Resources Ltd 13.1900%

Crusader 4.7500%

Basin 2.1000%

Santos BOL 0.2100%

Alliance 5.4787%

Reef 1.9700%

Santos Petroleum 0.4000%

BOD 3.9900%

Vamgas 11.7441%

* Delhi elected not to participate in the drilling of Merindal 1.