Santos highlights Indonesian Q1 production, exploration

The following is an excerpt from Santos Limited's first quarter 2009 report released on Thursday.

PRODUCTION
Sales gas production from Brantas, Kakap and Maleo of 7.3 PJ (6,884 MMCF) was 30% higher than Q1 2008 due to higher Maleo gas offtakes.

Production from the Maleo field is no longer impacted by capacity restrictions in the East Java gas pipeline (operated by Pertamina) following installation of a bypass pipeline creating additional capacity. Gross production rates from Maleo during Q1 2009 averaged approximately 124 TJ/day (116.93 MMCFD) (up from approximately 104 TJ/day in Q4 2008 and 101 TJ/day in Q3 2008).

Indonesian crude oil production of 0.18 mmbbl was 8% lower when compared to Q4 2008 due to natural field decline.

EXPLORATION ACTIVITY
Peluang-1, located in the Madura Offshore PSC, East Java, spudded on 19 February 2009 and was drilled to a total depth of 1,126m. The well intersected gas pay in the target Mundu formation. The well was plugged and abandoned as planned, and subject to commerciality, the discovery may ultimately be tied into the nearby Maleo field. Santos is the operator and has a 67.5% interest.

Oyong Project (Santos 45%, operator)
Oyong Phase 2, development of the gas reserves, achieved project sanction in December 2007. Engineering and construction works are progressing on schedule and first gas production is scheduled for Q3 2009. (end of excerpt)