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Summary

Oyong-1 - Indonesian Oil and Gas Discovery

Santos (Sampang) Pty Ltd, as Operator of the Sampang PSC offshore East Java, advises the results of the first of two drill stem tests to be conducted in the Oyong-1 well. Oyong-1 encountered a 110-metre gas column between 813 metres and 923 metres and a 35-metre oil column between 923 metres and 958 metres in the Early Pliocene Mundu limestone formation.

From the interval 927 metres to 931 metres in the oil zone, the well flowed 121.2 cubic metres of 41.9 API oil per day (762 barrels) and 34,550 cubic metres of gas per day (1.22 million cubic feet per day) through a 9.5 millimetre (24/64 inch) surface choke from the initial flow period. Step-wise testing will continue.

All reported depths are referenced to the rig rotary table.

Oyong-1 is located approximately 80 kilometres East of Surabaya in 44.5 metres of water.

Participants in the Sampang PSC are:

Santos (Sampang) Pty Ltd (Operator)

45.00%

Coastal Indonesia Sampang Ltd

40.00%

Cue (Sampang) Pty Ltd

15.00%