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Santos Ltd has made a natural gas discovery Crocker Perkins 2 – in a new area for the Company in Texas.

Santos has made a deep gas discovery in the Wilcox trend with Crocker Perkins 2. The well, is located in Live Oak County, was directionally drilled to a total depth of more than 4,600 metres (15,000 feet) in 59 days and encountered over 30 metres (90 feet) of net natural gas pay in multiple sands.

The well has been tested at 107,600 cubic metres (3.8 million cubic feet) of gas per day and 12 kilolitres (76 barrels) of condensate per day on a 4 mm (10/64 choke), at 7000 psi flowing tubing pressure. Perforations were added to enhance rate and the well is currently being tested to evaluate possible production gains to be added from fracture stimulation. The well began flowing to sales on 13 July, 2002.

Santos Managing Director Mr John Ellice-Flint said

Part of Santos growth strategy for 2002 is to focus on US deep gas exploration. The Esenjay acquisition has provided us with a high impact drilling portfolio, offering high margin opportunities in a strong gas market.

This well is the second successful well in the Wilcox trend from the Esenjay portfolio. Our ability to drill the high pressured gas wells is allowing the initial capture of value from the Esenjay acquisition

Santos holds a 91 percent interest in the well and is the operator.