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Santos Gas Discovery In Victoria

Santos Limited today announced that it has discovered a new gas field in the Western District of Victoria, approximately 15 km north west of Port Campbell.

The exploration well, Tregony 1, has the longest gas column Santos has encountered in the onshore Otway Basin to date. Based on analogies with existing wells in the immediate area, the well is expected to come on production at 10-15 million cubic feet per day.

Santos’ Managing Director John Ellice-Flint said,

“Tregony 1 is Santos’ second gas discovery in Victoria in a month and it is expected to be in production by mid year, in time for the winter peak demand in Victoria. Victoria is the largest user of gas on the eastern seaboard.”

“This latest exploration success follows our discovery of the McIntee field in February 2001. We also expect to be drilling two further wells in the area by May 2001,” he said.

Santos is Australia’s largest net gas producer. It operates the Cooper Basin in central Australia and has been supplying gas to Victoria since 1998. Since July 1999 Santos has also supplied gas from Western Victoria through its Heytesbury Gas Facility.

The exploration well, Tregony 1, has reached a total depth of 1,817 metres after penetrating a 55 metre gross hydrocarbon column in the Late Cretaceous Waarre Sandstone. Wireline logs are currently being evaluated and indications are of 42 metres of net gas pay over the interval 1,652 metres to 1,708 metres.

The Tregony field is located in Petroleum Exploration Permit (PEP) 153 in which Santos is the sole interest holder.