Santos? Indonesian drilling update

Thursday, December 9 2004 - 09:37 AM WIB

The following is excerpt from Santos Limited?s Weekly Drilling Report for week ending December 9, 2004:

Delineation well (Near Field Exploration/Appraisal Well)Jeruk 2/ST2
TypeOil Appraisal
LocationOffshore Indonesia
Sampang PSC, East Java Basin.
1.6km E of Jeruk1, 35km WSW of the Oyong Field and some 40km SE of Surabaya.
Status at 0400hrs -- 09/12/04 (Jakarta Time)During the week, DST 2 conducted over the open hole interval 5672m ? 5726m MD, recovered formation water as expected, a total of 9.0 kilolitres (57 BBL) was recovered. The test did not provide pressure data of sufficient quality to determine the extent of the hydrocarbon column. Subsequent mechanical difficulties have precluded further drill stem testing within the original wellbore, and the rig is currently cutting and retrieving a section of the 114mm (4 ??) liner, to allow for the commencement of a sidetrack hole. The aim of this sidetrack is to enable an open hole drill stem test to determine the height of the hydrocarbon column, and the productivity of the deeper reservoir section.
Planned Total Depth5700m
InterestSantos Group 50%
PT Medco Sampang 50%
OperatorSantos Group
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