Santos Indonesian drilling update

The following is excerpt from Santos Limited?s Weekly Drilling Report for week ending August 18, 2005:

Delineation Well(Near Field Exploration/ Appraisal Well)	Jeruk 2 ST4
Type	Oil Appraisal
Location	Offshore 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 drilled out of the existing Jeruk 2 wellbore.
Status at 0300hrs -- 11/08/05	Jeruk 2 ST4 has been plugged back due to a restriction within the 178mm casing string. The well will be side tracked from approximately 4490m to continue the evaluation of the reservoir section.
Planned Total Depth	5570m
Interest	Santos Group 45.0%
	Singapore Petroleum Sampang Ltd 40.0%
	Cue Sampang Pty Ltd 15.0%
Operator	Santos

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Development Well	Oyong Development
Type	Oil Development
Location	Offshore 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 -- 18/08/05	Preparing to abandon Oyong 9 DW1 ST2 Pilot hole. The current depth is 1582m with 947m progress for the week. Oyong 4 DW1: 244mm casing set at 1019m. Plugged back due to mechanical problems with parted production screens. Oyong 5 DW1: 244mm casing set at 965m. Current depth 1296m. PBTD 870m Oyong 6 DW1 Pilot: 244mm casing set at 1022m. Hole abandoned at 1200m. Oyong 7 DW1: 178mm casing set at 1189m. Current depth 1190m. Oyong 8 DW1 Pilot: 244mm casing set at 1351m. TD 1652m. Temporary Abandoned Oyong 9 DW1/ST1: 178mm casing set at 1339m. ST1 abandoned at 438m. Oyong 9 DW1/ST2 (Pilot Hole): 244mm casing set at 1416m. TD 1582m Oyong 10 DW1: 244mm casing set at 835m. Current depth 838m.
Planned Total Depth	920m SS
Interest	Santos Group 45.0%
	Singapore Petroleum Sampang Ltd 40.0%
	Cue Sampang Pty Ltd 15.0%
Operator	Santos Group