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Santos Ltd ABN 80 007 550 923 Ground Floor, Santos Centre 60 Flinders Street Adelaide South Australia 5000\

GPO Box 2455 Adelaide South Australia 5001

Direct: + 61 8 8116 5000 Facsimile: + 61 8 8116 6723

TO: Company Announcements Office ASX Ltd FROM: Company Secretary DATE: 4 March 2010 SUBJECT: International Investor Presentation – Delivering Transformational Growth Please find attached presentation slides being presented at International Conferences during March 2010. James Baulderstone Company Secretary

1

1

Investor Presentation Delivering Transformational Growth

March 2010

2

Disclaimer & Important Notice

This presentation contains forward looking statements that are subject to risk factors associated with the oil and gas industry. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a range of variables which could cause actual results or trends to differ materially, including but not limited to: price fluctuations, actual demand, currency fluctuations, geotechnical factors, drilling and production results, gas commercialisation, development progress,operating results, engineering estimates, reserve estimates, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory developments, economic and financial markets conditions in various countries, approvals and cost estimates.

All references to dollars, cents or $ in this document are to Australian currency, unless otherwise stated.

2

3

Santos Overview

1P reserves 647 mmboe2P reserves 1,440 mmboeContingent resources 2,497 mmboe2009 production 54.4 mmboe2009 2P reserve replacement ratio 885%

One of Australia's leading upstream oil and gas companies and has been operating since 1954

Current production is:- ~600 MMscf/d of gas- ~40 kbbls/d of liquids

Employs approximately 2,200 people

Over 110,000 shareholders

Market capitalisation of ~US$10 billion (Feb 2010)

Exposure to LNG facilities and technology through its involvement as a key stakeholder in Darwin LNG, PNG LNG, GLNG and Bonaparte LNG

Regional footprint of operations

Key statistics (YE 2009)

Production

ExplorationOtway Basin

Kyrgyz Republic

Bangladesh

India

Phu KhanhBasin

Kutei Basin

Nam Con Son Basin

East Java BasinWest Papua and Papua New Guinea

Carnarvon Basin

Browse Basin

Timor Sea & Timor Gap

Bonaparte Basin

Amadeus BasinCooper Basin

Surat/Bowen Basins

Gippsland BasinGunnedah Basin

4

The Santos Strategy

Base business Eastern Australia: Margin growth and resource conversion Indonesia: Established business with incremental growth WA: Growing a material domestic gas business

LNG growth GLNG: A leading CSG to LNG project, FID mid-2010 PNG LNG: FID Dec-09, first LNG production mid-2014 Darwin LNG: Mature brownfield LNG growth Bonaparte LNG: Innovative floating LNG project

Focused growth in Asia Vietnam: Develop Chim Sao and exploration-led growth India/Bangladesh: Bay of Bengal exploration-led growth

Using quality assets, Santos will safely deliver:

3

5

Delivering Transformational Growth

FID 8 December 2009 on schedule 6.6mtpa capacity fully contracted

PNG LNG

Successful $3 billion equity raisingFunding for growth

Binding HoA with PETRONAS for 2mtpa with 1mtpa option underpins first LNG train

EIS & Supplemental EIS lodged, public submissions closed 1 Feb 10 FEED studies well advanced, long lead engineering orders placed Fairview produced water approval

GLNG

DeliveryTarget

Oyong Phase 2 (Indonesia) – first gas delivered on schedule Henry (Vic) – first gas 1H10 Kipper (Vic) – first gas 1H11 Reindeer (WA) – first gas 2H11

Next phase of projects on schedule

Acquisition of additional acreage and investment in ESG $300 million in asset sales executed including Petrel/Tern/Frigate

Portfolio management

54.4 mmboe in line with guidance2009 production 53 – 56 mmboe

Bas

e B

usi

nes

sLN

G G

row

thA

sia Bay of Bengal 3D seismic survey completedIndia / Bangladesh

Chim Sao project sanctioned - first oil 2H11Vietnam

6

0

200

400

600

800

1000

1200

1400

1600

2004 2005 2006 2007 2008 2009

Base LNG

2P Reserves (mmboe)

Transformational Reserves Growth

5-Yr CAGR = 18%

4

7

30

40

50

60

70

80

2008 2009 2010 2011 2012

Production and sales grow to record levels

2009 production within guidance range

2010 impacted by lower Mereenie (contract expiry post Blacktip) & BayuUndan (35-day shutdown)

New production from sanctioned projects on line from 2011: Kipper, Reindeer & Chim Sao

Third party gas sales a significant new profit centre

Production and Sales (mmboe)

Asset divestment options being reviewed may result in sale of production

Sanctioned projects drive production higher: 7% CAGR 2009-2012

ProductionSales

Sales forecast based on mid-point of annual production range

Range

8

Growth in LNG

5

9

LNG is a key component of Santos’ Growth Strategy

Strategy Components

Darwin LNG Production since 2006 3.6mtpa single train Santos 11.5%

GLNG Leading CSG to LNG 7.2mtpa two trains FID mid-2010 Santos 60%

PNG LNG Sanctioned Dec 2009 6.6mtpa two trains First LNG 2014 Santos 13.5%

Deliver the Base Business

LNG Growth

Focused growth in Asia

Bonaparte LNG 2mtpa FLNG Santos 40% with carry to FID

10

Strong Asia Pacific LNG Demand Outlook

Source: Wood MackenzieOthers includes: Alaska, Trinidad, Egypt, Yemen, UAE, Iran

Australia

Qatar

MalaysiaIndonesia

Russia East

Oman

Brunei

PNG

Others

Uncontracted Demand

LNG Demand

0

50

100

150

200

250

300

2008 2010 2012 2014 2016 2018 2020 2022 2024

LNG

Con

trac

ted

Supp

ly (

mtp

a)

0

50

100

150

200

250

300

LNG

Dem

and

(mtp

a)

6

11

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20 $30 $40 $50 $60 $70 $80 $90 $100

JCC ($/Bbl)

Ex-s

hip

LN

G P

rice

($/M

MB

tu

Source: Poten & Partners

Mid 2006

Late 2005

Late 2006

Early 20052003

2008-09

Ex-S

hip

LN

G P

rice

($

/MM

Btu

)

Asian Term Prices

Oil Parity

Recent contracts point to strong underlying demand

Pricing reflects new supply-demand equilibrium

Long-term Asia-Pacific pricing remains oil-linked

Continue to See Strong Long Term LNG Pricing

US$12.40/MMBtu

12

GLNG®

7

13

The Project – Two TrainsUpstream CustomersLNG Plant

Train 1

Train 2

1 Train: 600 TJ/d

Pipeline Shipping

3.6mtpa FOB

7.2mtpa FOB

Arcadia

Roma

Fairview

2 Trains:1,200 TJ/d

LNGCSG

CSG

Portfolio Gas

Storage

14

GLNG Milestones AchievedGLNG is progressing key milestones

Two trains, five train site

Downstream FEED 90% complete

Upstream FEED 75% complete

Binding off-take agreement

Supplementary EIS lodged - Public submission period closed

Long lead engineering orders placed

Water solution - 1 million trees planted

FID 1st train Mid 2010

First cargo 2014

8

15

GLNG Reserves and Resources

378%

549%exclGLNGsale

277%247%

GLNG has dedicated reserves and resources in excess of 10 tcf

GLNG Dedicated Areas (PJ) 2P reserves exceed

requirement for first train

95% uncontracted and available to project

Dedicated reserves & resources in excess of 10tcf

Portfolio gas provides optionality

GLNG will execute the most capital efficient reserves build

0

2,000

4,000

6,000

8,000

10,000

12,000

GLNG 2P + 2C GLNG 3P + 3C

2P 2C 3P 3C

4,0035,954

10,931

6,772

1,000 PJ = 0.94 tcf

16

GLNG Upstream Update GLNG has a comprehensive program to prove up reserves and deliverability

Well Production ComparisonMarch 2009 vs January 2010

0

2

4

6

8

10

12

Fairview Wells

Gas

Pro

duct

ion

Rate

(TJ

/d)

0

20

40

60

80

100

120

Cumulative R

ate (TJ/d)

March 2009 Gas Production

January 2010 Gas ProductionMarch 2009 Cumulative Gas Rate (TJ/d)

January 2010 Cumulative Gas Rate (TJ/d)

Sales Gas Snapshot:27 March 2009: 91 TJ7 January 2010: 126 TJ

Wells- 130 CSG wells were drilled for

GLNG in 2009- Successful deviated drilling

trials: reduces cost and increases productivity

Environment- Supplementary EIS lodged Dec

09, public submissions closed 1 Feb 2010

- Water management approved. Fairview forage irrigation and hardwood plantation established – 1 million trees planted so far

Upstream FEED- Dual competitive FEEDs 75%

complete- FEED finalisation 2Q10

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17

GLNG Downstream update

Curtis Island site- EIS application for 10mtpa capacity

(3 trains) Downstream FEED

- Bechtel appointed- 2-train FEED 90% complete- Curtis Island geotechnical site survey

work complete Pipeline FEED

- FEED 90% complete (GHD)- Pipeline tender released

Marketing- Binding offtake agreement with

PETRONAS for 2mtpa plus 1mtpa at GLNG sole option

- Ongoing detailed discussions with other Asian customers for offtake and equity

T1 T2 T3

T4T5

18

Technology innovation will realise value and opportunities

Pad Drilling

2-9 wells/pad

Reduced rig moves

CAPEX and OPEX savings

Facility simplification

Economies of scale

Operator efficiency

Gas to processing station Water to plantation/crops

Pad Drilling

10

19

Roma Storage WithdrawalRoma Storage Withdrawal

Turndown &/or Portfolio Gas Sales

0

600

2010 2014

Gas

sup

ply

(TJ/

d)

Existing Domestic ContractsExisting Domestic Contracts

Roma Storage InjectionRoma Storage Injection

GasProduction

GasProduction

Roma gas storage is integral to ramp gas management

and supports gas supply optimisation

Ramp Gas Strategy

20

PNG LNG, Darwin LNGand Bonaparte LNG

11

21

Papua New Guinea LNG

FID approved on 8 Dec 2009 3 SPAs executed, remaining

one expected to be executed in early-2010 Financial Close 1Q 2010 First sales are targeted for

2014 Santos interest 13.5% Plateau Production of ~9

mmboe pa net to Santos 2P reserves addition 218

mmboe

PNG LNG Project FID approval signals next step in LNG growth strategy

22

Papua New Guinea LNG

Papua New Guinea

LegendSantos acreageOil fieldGas field

Oil pipelineProposed gaspipeline

MarineTerminal

PRL 9PDL 3

PDL 1

Santos’ acreage and infrastructure position provides opportunity for further growth

100km

Hides

LNG Plant

Port Moresby

Gulf of Papua

First redetermination to follow Hides drilling in 2012/13

Debottlenecking has the potential to increase off-take

3rd train alternatives being considered

- Hides drilling results could be key driver

12

23

Santos’ first producing LNG asset

Santos interest 11.5%

Bayu Undan- producing ~1.1bcf raw gas per day (gross)- Approximately 103,000 bbl/d liquids (gross)

DLNG 3.5mpta plant- Turbine upgrade during 2010 statutory

shutdown to increase to 3.6mtpa

Base project continues to deliver with potential upside unfolding:- Third Party Gas - Phase 2 Drilling campaign

2010 planned shutdown; 35 days in 2010 will reduce production and increase production cost for the year

Bayu Undan / Darwin LNG

24

Santos has sold 60% of Petrel/Tern/Frigate to GDF SUEZ for up to US$370 million and a full carry of Santos’ share of costs to FID

The fields are an ideal fit for FLNG:- Low in CO2- Low in liquids- Material resource size (~2.1 tcf)

Executing on strategy:- Unlocks value in contingent resources- Partner with world class companies- Deepening our LNG growth options- Use new technology

Transaction completed Jan 2010

GDF SUEZ and Santos establishing project team in Perth

Partnership with GDF SUEZ unlocks value in 360mmboe of contingent gas resource

Santos retains approximately 70% (500mmboe) of its total Bonaparte Basin 2C contingent resource.

Bonaparte LNG

13

25

WA-281-P

WA-411-P

WA-274-PWA-410-P

WA-274-P

WA-274-P Concerto

PreludeEchuca Shoals

Ichthys

ArgusCrux

Montara

Arquebus

CallianceBrecknock

Torosa

Poseidon

Gwydion

Caswell


0 20 40 60 80 100

Territory of Asmore & Cartier Islands

Western Australia

Mapped Area

Cornea

Burnside

IchthysNorth

Exploration success

Burnside Discovery

in a great street addressPsepotus Kilometres

26

Australia Domestic Gas

14

27

Gas is an Underutilised Fuel for Power Generation in Australia

Source: IEA 2007 Edition; EIA; Santos est.

0%10%20%30%40%50%60%70%80%90%

Singa

pore

Thailan

d

Malaysia

Califo

rnia

Italy UK

Japa

n NZ USKo

rea

Germ

any

Austr

alia

India

Cana

daCh

ina

Power Generated from Natural Gas (%)

28

0

400

800

1200

1600

2000

2400

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

PJ/a

Demand for Eastern Australia Gas

10 Year Historic Average

Demand will nearly triple within 10 years…

…driven by LNG export and carbon policySource: AEMO, EnergyQuest, Santos, Company Announcements

PlannedLNG

Projects

Carbon driven fuel switching

15

29

In every producing basin

Infrastructure network in place

Arbitrage value across supply points

Facilitates ramp gas management

Santos’ Unique Position Suits the Rapidly Developing Market

Patricia Baleen plantPatricia Baleen plantMoombaMoomba

HubPotential hubGas pipeline

30

Reports of the Cooper’s Death are Greatly ExaggeratedCooper Gross Reserves and Unrisked Resource Potential

Current Produced6,317 PJ

2P Reserves1,163 PJ

Aspirational 75% 2P Recovery Factor

2,866 PJ

2P

Note: Gross volumes

Booked Contingent Resources 1,584 PJ

Conventional Reserves/Resources

Cooper infill

16

31

198619992006

Land Sat Image - Jonah Field (USA)

Create Supply – Cooper Infill, Beyond the 2P

Technically robust, multi tcf potential Rock Outcropping of MesaverdeRiver Deposits

10 acre 20 acre 40 acreSpacing

Green = current Cooper spacing ~200ac

32

Gross Unrisked Resource Potential

Note: Gross volumes

Unconventional Resource Potential: 39,000+ PJ

Booked Contingent Resources 4,750 PJ

Moomba

TOOL DARA

ROSE EPSI MTRE

PATC

GRANITE

Shale Gas

Tight Gas

Deep Coal

Developed Conventional

Undeveloped Unconventional

Gross gas thickness ~1600 feet

UnconventionalResources

Reports of the Cooper’s Death are Greatly Exaggerated

17

33

ESG operated areas- Net 2P reserves 724 PJ

- Net 2C resource 951 PJ

STO operated areas- Initial exploration phase

underway- 2010 program:

- 4 coreholes- 8-10 pilot wells- 90 km seismic

Basin master position with >50 tcf prospective potential

50km

LegendSantos operated acreageEastern Star operated acreageGas pipelineProposed gas pipeline

NewSouth Wales

Narrabri

Dubbo

Gunnedah

Tamworth

PEL434

PEL450PEL

462

PEL12

PEL 238

PEL 433

PEL456

PEL 1

PPL 3PAL 2

PALA 5PEL 452

Newcastle

Wilga Park Power Station

Focussing on commercialisation

Gunnedah Basin – Next Major Play in Coal Seam Gas

34

Proposed Shaw River Power Station

Power generation consistent with commercialisation of Santos’ extensive gas resources SRPS now targeting FID in

2nd half 2010:- Regulatory certainty (CPRS)- Key approvals- Partner selection

Santos portfolio to supply gas

WarrnamboolPort Fairy

Orford

Willatook

Mortlake

TerangCamperdown

Timboon

Port Campbell

Koroit

Allansford

Proposed Shaw RiverProposed Shaw RiverPower Station SitePower Station Site

Proposed Pipeline Route

VictoriaVictoria

0 15 km Bass Strait

Targeting FID 2H 2010

18

35

Western Australia Domestic Gas

Demand No reliance upon wholesalers and

retailers for channels to market Material market (1,000Tj/d)

Supply Incumbent asset holders in

shallow water are well positioned Santos well positioned before

new LNG projects to grow domestic market share: - Reindeer (first gas Q4 2011) - Halyard / Spar (short cycle time

via Varanus Island facilities)

17%

10%

5%5%

5%

3%

5%

25%

25%

Exmouth

PERTH

Bunbury

Kalgoorlie

Onslow

DampierPort Hedland

Albany

Share of demand centre**

Exposing Santos to WA resources boom

Sources of demand*

Alumina 25%

Electricity generation 25%

Chemicals 20%

Mining 15%

Mineral Processing and Manufacturing 10%

Residential/Commercial 5%

*Source: RISC

** Source: Santos

36

Santos supplies gas via one of two existing hubs and one new hubunder construction…

Hub-led Strategy


Gas pipelineGas hub

East Spar

Varanus Is.

John Brookes

Devil Creek

Focused NFE

…with focused NFE in shallow water close to existing hubs targeting low risk/quick cycle gas tie-back prospects

Reindeer

Spar / Halyard

2010 NFE well

19

37

East Spar

John Brookes

Focused NFE

Spar / Halyard

John Brookes- Producing asset - 45% working interest- New gas sales at higher prices- Field capacity +300TJ/d (gross); East

Spar plant capacity ~230TJ/d (gross)- Opportunities to maximise production

via spare processing capacity in Harriet Joint Venture and sales to Harriet parties

Spar / Halyard- Apache progressing Halyard

development- Spar development under review

NFE Opportunities- Existing acreage with shallow water

and access to existing gas hub- Spar Deep and East Spar East NFE

wells planned in 2010

Hub 1: Varanus Island

Varanus Is.

38

Devil Creek

ReindeerDevil Creek / Reindeer –new gas hub

Creation of 3rd WA gas hub

Under development – first gas Q4 2011

45% working interest

Shallow water offshore platform 45kms south west of Dampier

Two train production capacity (field and plant) 215 TJ/d (gross). Site designed to take an additional train

NFE within existing acreage in shallow water and targeting low risk tie-back prospects to new hub

CITIC Pacific Iron Ore gas sale (US$585m); other contracts to follow

Hub 2: Devil Creek/Reindeer

Reindeer works – assembly yard in Thailand

Focused NFE

20

39

2009 Full Year Results

40

2009 Profits Impacted by Lower Product Prices

2009 Full Year Result

Oil Price A$78.83 per bbl

Production 54.4 mmboe

Sales Revenue $2,181 million

Underlying Net Profit After Tax $257 million

Net Profit After Tax $434 million

Operating Cash Flow $1,155 million

Final Dividend 20 cents per share

21

41

Production Cost, Cost of Sales Lower

800

1000

1200

1400

1600

2008 2009

Total Cost of Sales

Gas Purchases

Production Cost

Cost of produced

gas 1

300

350

400

450

500

550

600

2008 2009

$9.78/boe

$9.99/boe $23.67/

boe$25.50/

boe

$m

1 Includes production cost, tariffs, tolls and pipeline costs, royalties, inventory and DD&A

$m

42

Eastern Australia 625 900WA&NT 630 862GLNG 38 58Asia Pacific 99 208Gains on sale of assets 261 1,697Corporate and unallocated items (65) (42)Total EBITDAX 1,588 3,683

Eastern Australia | Lower liquids prices and production volumesWA&NT | Higher gas volumes but lower liquids prices and volumesGLNG | Expanding field operations increasing production costsAsia Pacific | Higher gas production, lower liquids prices and volumes

Segment EBITDAX Summary

Segment 2009 2008

$m

22

43

$5 Billion of Funding Capacity

31 December 2009

Cash & term deposits 2,240Undrawn, committed corporate lines 700Undrawn, committed project line* 2,117Cash & committed debt lines 5,057

* Converted at year end exchange rate

$m

44

0

500

1000

1500

2000

2500

3000p q

Reserves Growth and Resource Conversion

0

500

1000

1500

2000

2500

3000

mmboe

(54) 147

378 (44)

1,013

1,440

2008 20092C Contingent resources 2P Reserves

20092008

2,849 (412)

(342)153

250 2,498

mmboeCommercialisation

DivestRevisions

Acq

Prod RevisionsAcq/Div

Commercialisation

To cash

23

45

Reference Slides Delivering Transformational Growth

March 2010

46

Indonesia: Madura Offshore PSC

Maleo- Production start-up 29 Sept.

2006- Gross gas production

~ 110 mmscf/d- Reserve upgrade at end 2009- Long term sales gas contract

to PT Perusahaan Gas Negara Peluang

- Peluang-1 well drilled in 1Q 2009

- Potential tie back to Maleo to maintain plateau

Maleo performing beyond expectation; incremental growth from Peluang


Oil pipelineGas pipeline

MaduraOffshore PSC

East Java

Madura Island

Bali

Peluang-1Maleo

GratiProcessing

Plant50km

Surabaya

24

47

Indonesia: Sampang PSC

Oyong Phase 1 (oil)- Production performance above

expectation at ~ 3600 bbl/day (gross) Oyong Phase 2 (oil and gas)

- 2.6 million manhours without aLost Time Injury

- Gas production start-up on time (Q309) and plateau of ~ 60 mmscf/d(gross) reached within 20 days

- Gas sales to PT Indonesia Power Wortel

- Tie back to Oyong- POD approval expected in December

2009 - FID targeted mid 2010- First gas forecast 2H 2011



Surabaya

Sampang PSC

East Java

Madura Island

Bali50km

GratiProcessing

Plant

Wortel OyongJava Sea

Oyong Phase 2 delivered on time; incremental growth from Wortel

48

Vietnam

Chim Sao Project reshaped for value Revised Field Development Plan

approved by Government Principal contracts covering EPCI and

FPSO lease executed in October Wellhead platform expected to be

installed 2H 2010 Latest capital expenditure estimate

$US270 million net First oil targeted for 2H 2011; net

plateau production ~ 8,000 bbl/d Dua tie-back being evaluated 2D seismic complete in Block 123 in

Phu Khanh basin, drilling in 2011 planned.

Attractive oil project providing medium term growth with upside



Vietnam

Cambodia

Thailand

Laos

ChinaBurma

South China Sea

12W PSC

123 PSC

DuaChim Sao

25

49

Bay of Bengal

Bangladesh- Chittagong gas market significantly

undersupplied

- Sangu well optimisation is extending field life

- Free market gas rights obtained for Magnama

- 3D seismic on Magnama and South Sangu planned for early 2010

India- Targeting material gas prospectivity

for domestic market

- 3D seismic program largely complete

- Interpretation underway

Potential for medium term exploitation business in Bangladesh and long term business in India

LegendSantos acreageGas field


Bangladesh

Burma

India

India

Bay of Bengal

NEC-DWN-2004/2

NEC-DWN-2004/1

Block 16

Sangu

50

Kyrgyz Republic

Leading acreage position

2D seismic complete

Shallow prospects drilled in 2009 secured prospective acreage and developed concepts

Deep drilling in 2010 & 2011

Early production feasible with multiple export options

Option secured on acreage adjacent to Kyrgyzstan licences


Bishkek

Kyrgyz RepublicNaryn

Jalal-Abad

Osh

Andizhan

Talas

Fergana

ChinaTajikistan

Kazakhstan

Uzbekistan

LegendSantos acreageRefineryOil field

Potential for medium term exploitation business. Key tests in 2010 & 2011

26

51

The exploration portfolio is continuously being optimised therefore the above program may vary as a result of rig availability, drilling outcomes and maturation of new prospects

2010 Forward Exploration Drilling Schedule

0 – 50 50 - 100 100 - 500

PEL 433 (1CH) Gunnedah Gas CSG √ 48.0 Q1


ATP 631P (R) (1CH) Surat Gas CSG √ 81.9 Q1

EPC 937 (1CH) East Bowen Gas CSG √ 85.0 Q1


ATP 655P (2CH) Surat Gas CSG √ 100.0 Q2

ATP 745P (2CH) Bowen Gas CSG √ 79.6 Q3

West Soh 1 Fergana / Kyrgyz Rep. Oil √ 70.0 Q3

Spar Deep Barrow / Australia Gas √ 100.0 Q3

North Auchi 1 Fergana / Kyrgyz Rep. Oil √ 70.0 Q4

West Mailisu 1 Fergana / Kyrgyz Rep. Oil √ 80.0 Q4

ATP 868 P (3CH) Surat Gas CSG √ 100.0 Q4

East Spar East 1 Barrow / Australia Gas √ 45.0 Q4

Alabuka West 1 Fergana / Kyrgyz Rep. Oil √ 70.0 Q4

Australia Offshore Australia Gas √ 50.0 Q4

Santos Interest

% Timing

Gross Unrisked, Upside Resource Potential (mmboe)

Basin / Area TargetWell Name/

CSG Program

52

Reported & Underlying Profits

1650

434(341)

50

548

257

0

250

500

750

1000

1250

1500

1750

Reported NPAT Underlying NPAT

2008 2008 20092009 Operatingresult

Prices & foreign

exchange

$m

27

53

0

10

20

30

40

50

6054.4 (0.8) 53.6 (3.1) 3.9 54.4mmboe

Production on Guidance

2008 20092008 Continuing operations

Production from continuing operations grows 0.8 mmboe

Natural decline and effect of downtime events offset by new production

Assetsales

Naturaldecline

anddowntime

Newproduction

andfield

productivity

54

Sales Volumes Grow 8%

0

500

1000

1500

2000

2500

30002,762 (597) 155 (139) 2,181

2009

$m

52.8 54.9

35.2

30

40

50

60

2008 2009

ProducedReserves

Purchased Gas

mmboe

2008

3rd party gas emerges as profit centre

Oil production continues decline

Gas production more than offsets lower oil outcome

Third party gas revenue $131 million

Price& fx Volume Mix

28

55

DD&A Declines by $50 million

0

100

200

300

400

500

600

700662

Rate

57

Volume

(7) 612

2008 2009

$m

$12.17/boe $11.25/boe

Additional reserve bookings in Cooper and Indonesia drive lower depletion rate

Slight increase in depreciation on GLNG facilities

56

Underlying profit 257 548Significant items 177 1,102Net profit after tax 434 1,650Significant items:

Gain on sale of oil and gas assets/controlled entities 180 1,188Impairment of oil and gas assets (17) (140)Provision of contract losses: rigs and offices (17) -Foreign currency losses/gains (21) 18Remediation and related costs of incidents 19 11Change in fair value of embedded derivatives 3 (9)Investment Allowance 21 -Income tax 6 28Net profit/(loss) impact of fair value hedges 3 6

Total 177 1,102

Significant Items (after tax)

2009 2008$m

29

57

2010 Guidance

2,800Capital expenditure (including exploration & evaluation)2 ($m)

90 to 110Royalty related taxation expense1

($m after tax)

11.70DD&A expense ($/boe)

540 - 560Production costs ($m)

51 – 54Production (mmboe)

2010Guidance

Item

1 Royalty related taxation expense guidance assumes an oil price of A$90 per barrel.

2 Capital expenditure guidance includes $150 million for conventional exploration.

58

2010 Sensitivities

Sensitivity Change NPAT Impact A$m

US dollar oil price US$1/bbl 9

Gas price 10 cent/GJ 18

A$/US$ exchange rate 1 cent 8

Interest rates 1% 1

30

59

Contact Information

Head officeAdelaideGround Floor, Santos Centre60 Flinders StreetAdelaide, South Australia 5000GPO Box 2455Adelaide, South Australia 5001Telephone: +61 8 8116 5000Facsimile: +61 8 8116 5050

Useful email contactsShare register enquiries:[email protected]

Investor enquiries:[email protected]

Andrew NairnGroup Executive Investor RelationsLevel 10, Santos CentreDirect: + 61 8 8116 5314Facsimile: +61 8 8116 5131Email: [email protected]

Brooke HannInvestor Relations AnalystLevel 10, Santos CentreDirect: + 61 8 8116 7227Facsimile: +61 8 8116 5131Email: [email protected]

Website:www.santos.com

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