Santos Indonesian drilling update

Oyong development drilling commenced

Thursday, May 26 2005 - 08:13 AM WIB

The following is excerpt from Santos Limited?s Weekly Drilling Report for week ending May 26, 2005:

Delineation well (Near Field Exploration/Appraisal Well)Jeruk 2 ST4
TypeOil Appraisal
LocationOffshore Indonesia
Sampang PSC, East Java Basin. 1.6km E of Jeruk 1, 35.0km SW of the Oyong Field, and some 40km SE of Surabaya. Jeruk 2 ST4 is an appraisal sidetrack to be drilled out of the existing Jeruk 2 wellbore.
Status at 0600hrs -- 25/05/05 Pressure testing BOP?s prior to re-entering the Jeruk 2 wellbore.
Planned Total Depth (Rev.) 5570m
InterestSantos Group 45.0%
Singapore Petroleum Sampang Ltd 40.0%
Cue Sampang Pty Ltd 15.0%
OperatorSantos

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Delineation well (Near Field Exploration/Appraisal Well)Tanggulangin 4 ST1
TypeOil Appraisal
LocationOnshore Indonesia
Brantas PSC, East Java Basin. 1.0km N of Tanggulangin 1, 5.0km E of the Wunut Field facilities, and some 35km S of Surabaya.
Status at 0600hrs -- 25/05/05 Conducting cased hole testing program. The well reached a total depth of 1143m with no progress for the week.
Planned Total Depth1073m
InterestLapindo Brantas 50%
Novus Indonesia Brantas Company 32%
Santos Group 18%
OperatorLapindo Brantas

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Development WellsOyong Development
TypeOil Development:
LocationOffshore Indonesia, East Java Basin
Sampang PSC, 40km E of Jeruk 1 and some 80km E of Surabaya.7 Deviated Well Batch Drilling Program (Oyong 4 DW1 ? Oyong 10 DW1)
Status at 0600hrs -- 26/05/05 Preparing to drill ahead in 444mm intermediate hole in Oyong 5 DW1.
Oyong 4 DW1: 508mm casing set at 186m. Current depth 188m.
Oyong 5 DW1: 508mm casing set at 188m. Current depth 190m.
Oyong 6 DW1: 508mm casing set at 185.6m. Current depth 187m.
Oyong 7 DW1: 340mm casing set at 401m. Current depth 404m.
Oyong 8 DW1: 340mm casing set at 403m. Current depth 406m.
Oyong 9 DW1: 508mm casing set at 188m. Current depth 190m.
Oyong 10 DW1: 508mm casing set at 164m. Current depth 164m.
Planned Total Depth920m SS
InterestSantos Group 45.0%
Singapore Petroleum Sampang Ltd 40.0%
Cue Sampang Pty Ltd 15.0%
OperatorSantos Group
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