Santos Ltd A.B.N. 80 007 550 923 Ground Floor Santos Centre 60 Flinders Street Adelaide SA 5000 GPO Box 2455 Adelaide SA 5001 Telephone: 08 8116 5000 Facsimile: 08 8116 5623 To: Company Announcements Office ASX Ltd From: Company Secretary Date: 3 June 2008 Subject: Santos Investor Seminar Presentation Please find attached the Santos Investor Seminar Presentation which was given in Sydney today. James Baulderstone Company Secretary

Santos Investor Seminar3 June 2008

1

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.

Agenda

Introduction

Strategy David Knox

Base Business

Eastern Australia Gas Rick WilkinsonWestern Australia Oil & Gas Roger KennettCooper Basin Oil Mark Macfarlane

LNG

Growth in LNG David KnoxCSG Assets Mark MacfarlaneGladstone LNG David KnoxPNG LNG & Darwin LNG John Anderson

Asia

Asia Growth & Exploration Trevor Brown

Outlook Peter Wasow

Wrap Up David Knox

3

StrategyDavid Knox

Acting CEO4

5

Through:

� Delivering the base

� Tapping our resource riches

� Being a great place to work

…and do it all safely and sustainablyto deliver a superior shareholder return

An Australian Company Providing Energy for Asia

6

Energy World

Fundamentally

� Unprecedented Asian economic growth driving energy demand

� Rising CO2 emissions

� Security of supply becoming incredibly important

To meet energy needs while reducing emissions…

� Gas must have an increasing share of the fuel mix

� Unconventional energy supplies must complement conventional

� Prices need to remain high to ensure supply/demand equilibrium

7

Fundamental Shift Globally

Map Source: NASAChart Source: BP 2007 Statistical Review

An Australian company providing energy for Asia

China Rest of World

Rest Asia-PacificIndia

Growth in Primary EnergyDemand (2000 – 07)

8

Canada

Qatar

US

Russia

Iran

ME

Nigeria

Algeria

Indonesia

Malaysia

17

16159

743 177

300

90

164

Proven gas reserves (bboe)

Proven oil reserves (bbl)

Unconventional gas (bboe) economically recoverable

Proven unconventional oil (bbbl)

*3P

40

CSG +40bboe Resource potential

20*

37

33

28

EA CSG: Globally Significant Play in an Access Constrained World

Full IOC Access (85%)

Soviet NOC

1970

NOC Reserves(78%)

Russian

IOC

2007

Map: BP statistical review, June 2007, journalsPie Chart: Adapted from PFC Energy

Partial list for comparison

9

Expanding on our 10-year presence in Asia,

� Santos will help meet the in-country gas needs of Indonesia, Vietnam, and India/Bangladesh (Bay of Bengal) and develop oil for domestic & global markets

With our emerging presence in LNG,

� Santos will deliver reliable LNG from multiple conventional (DLNG, PNG) and CSG (GLNG) sources

Extending its 50-year history of reliably

serving Australia, Santos will in:

� Gas: help meet low emission needs with our conventional and rapidly growing cupboard of unconventional sources

� Oil: supply into global shortage

In Asia

In LNG

In Australia

Santos Positioning

10

Will Achieve Strategy Through Delivery

Reliable base business in Australia:

� Eastern Australia: price and volume growth

� Cooper Oil: high-value scaleable exploitation opportunity

� WA: exploit asset position

Significant growth in LNG:

� GLNG: transformational growth

� PNG: project underpinned by high quality gas reserves

� DLNG: brownfield LNG growth

Focused growth in Asia:

� Indonesia: steady business with incremental growth

� India/Bangladesh: Bay of Bengal

� Vietnam: first oil by end 2010, expansion opportunities

Using quality assets in an extensive footprint, Santos will safely deliver:

11

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

0

2

4

6

8

10

12

14

Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08

$A/G

J

West Texas Intermediate

0

50

100

150

96 97 98 99 00 01 02 03 04 05 06 07 08

0

5

10

15

20

25

30

0 15 30 45 60 75 90 105 120 135 150

US$/bbl

US$/m

mBtu

Delivered into Higher Pricing

Continuing high oil prices

Source: Woodmac, Global LNG Tool, Bloomberg, Santos

Santos average realised gas price

Domestic Australiannetback range (2)

Average Asian LNG Price (1)

LNG linked pricing in Western Australia

Closing arbitrage in Eastern Australia gas

LNG oil parity in Asia

Gas Price

Time

RL 3

Qatargas-4

Tannguh

North WestShelf

MLNG

12

0

4

8

12

16

20

98 99 00 01 02 03 04 05 06 07

Track Record in Operational Delivery

Continuous improvement in sustainability scorecard

Number of wells drilled Total Recordable Case Frequency Rate

Environment

Community

Our People

Economic

0

50

100

150

200

250

300

2004 2005 2006 2007 2008

Total Conventional O&G Total CSG Wells

05 06 07 05 06 07 05 06 07 05 06 07

13

Summary: Santos “Beyond the 2P”

Cooper Tight Gas – next phase

of unconventional growth

Cooper Gas – opportunity from

improved recovery as prices re-rate

Cooper Oil – pursue high value

scalable exploitation opportunities

Tirrawarra Oil / MCS1 –

application of global technology to local opportunity

Infrastructure – utilising

footprint as gas market decouples

Asian Growth

LNG

Australia Base

GLNG – continuous

multi-TCF reserves bookings, exploiting world class scalable CSG assets with leading LNG partner

PNG LNG – Expansion

opportunities

Ichthys – good prospect

in great neighbourhood

DLNG expansion – multiple

pathways for brownfield expansion

Near-term oil and gas development

in Oyong and Wortel

Multiple TCF gas prospects

in Bay of Bengal

Near term oil development

in Chim Sao/DuaSignificant oil prospects

in Vietnam

PNG LNG – significant

project underpinned by world class gas reserves

Volume growth –

gas-fired power generation in CO2 constrained world

Price growth –

arbitrage between domestic and export markets close

Gunnedah – future

growth from multi-TCF quality assets

Delivery of Australian Base Business

14

Eastern Australia GasRick Wilkinson

Vice President - Commercial15

16

600

800

1000

1200

1400

1600

1800

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

PJ/a

Demand for Eastern Australia Gas

10 Year Historic Average

Demand will more than double within 10 years…

…driven by government carbon policy and LNG export

Source: NEMMCO, Santos, company announcements

PlannedLNG

Projects

Carbon driven fuel switching

17

$0

$40

$80

$120

CCGT Dry Brown Coal Dry Black Coal

$/M

Wh

Base Long Run Marginal Cost (LRMC) $50/t carbon Incremental LRMC

Source: Santos, SKM

+$3.50

+$5.00

Increasing Value of Gas due to Carbon

Impact of carbon cost on electricity prices

Implied gas price increase

18

Energy Market Differentials

Prices available in domestic and export markets

(1) Source: Argus Monthly LNG (average of Japan, Taiwan & South Korea ex-ship spot and contract prices)

(2) Netback determination uses Santos assumed range of costs for shipping and liquefaction

0

2

4

6

8

10

12

14

Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08

$A/G

J

Santos average realised gas price

Domestic Australiannetback range (2)

Average Asian LNG Price (1)

19

0

2

4

6

8

10

12

14

16

1991

1993

1995

1997

1999

2001

2003

2005

2007

Henry H

ub Price

3.6

1.1

0.3

5.7

1.8

1.1

0

1

2

3

4

5

6

Tight gas sands Coalseam methane Gas shales

Natural gas production (tcf/yr)

1996 2006

Reserves and Production Growth as Prices Increase

259

55 52

379

73

128

0

50

100

150

200

250

300

350

400

Tight gas sands Coalseam methane Gas shales

Technically

reco

verable volumes (tcf)

1996 2006Source: Bloomberg, Oil & Gas Journals

Production

Reserves

Price

Combination of higher gas price, vast resource volumes and production technology advancement has resulted in substantial growth in North American unconventionals

U.S Growth Analog

20

Conventional Reserves Grow in Cooper as Prices Rise

� Cooper gas reserves at commercial not technical recovery limits

� Material reserves growth achieved in analog North American basins

� Critical factors that led to North American success potentially exist in the Cooper Basin

� Program underway to quantify upside reserve potential from Cooper Basin

Expectation of higher gas prices combined with liquids…

…could result in material Cooper Basin reserves increase

Current 2P Recovery: 9.7 TCFSold: 8 TCFContracted 2P: 1.2 TCFUncontracted 2P: 0.5 TCF

17.4 TCF 2P OGIP23.8 TCF 3P OGIP

As price increases, ultimate recovery increases (currently ~55% 2P recovery factor)

Unrecovered 2P 4.3 TCF

3P Upside 6.4 TCF

Aspirational 75% 2P Recovery Factor

3.4 TCF

2P

Note: Gross volumes

21

Impact on Unconventional Cooper Gas Resources

14.

GROSS GAS THICKNESS

1,600 FEET

TOOL DARA

ROSE EPSI MTRE

PATC

GRANITE

Shale Gas

Tight Gas

Moomba

Undeveloped Unconventional

Gross gas thickness ~1600 feet

Developed Conventional

� USA unconventional gas production has doubled since 1992

� STO mean prospective resource >7 TCF

� High graded 3 play types coincident with conventional reserves in Moomba

� 5 “tests of concept” projects

- Gas saturation in all 3 plays

- Moveable gas in 2 plays -1 yet to be tested

- Expenditure to date is $30m

� Deep coal frac flowing gas to surface

� Potential for first contingent resource booking in 2008

Deep Coal

Measured and considered program to define potential

Moomba 77 – Coal Frac, 100,000 scf/d, 9000 ft

22

Capturing the Infrastructure Value

Santos has the premier gas supply infrastructure position to benefit from increasing price volatility

Source: VENCorp

VENCorp Daily Spot Price(1st June 07 – 30 May 08, Interval 2)

0

5

10

15

20

25

Jun-07 Aug-07 Oct-07 Dec-07 Feb-08 Apr-08

$/G

J

Pt Bonython

Ballera

Moomba

Casino/Minerva Longford

OrbostKipper

Scotia

Gladstone

Wallumbilla

FairviewRoma

Peaking Price Volatility

23

Summary: Price and Volume Growth

� Demand for Eastern Australia gas will more than double within 10 years

� Prices will increase as:

- Arbitrage closes between domestic and export markets

- Carbon is valued into domestic power generation

� This price increase will drive conventional reserves and unconventional resources growth in the Cooper Basin

� Santos’ premium infrastructure position is poised to take advantage of increasing price volatility

Western Australia Oil and GasRoger Kennett

Vice President - Operations24

25

WA Oil & Gas

� 22% 2008-2010 Production

� 22% of Santos YE07 2P Reserves

� Oil:

- Production and redevelopment options to enhance production (Stag, Barrow and Mutineer -Exeter)

� Gas:

- John Brookes and Reindeer

Legend

Santos acreage

Oil field

Gas field

Oil pipeline

Gas pipeline

Dampier

WesternAustralia

IndianOcean

Reindeer

Barrow Is.

Varanus Is.Gas Hub

Exploit favourable asset position…

26

Western Australia domestic gas pricing…

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Current Contractingtrends

� No Caps

� No Collars

� No Floors

� Full floating, liquids linkage

WA Domestic Gas Prices Reflecting LNG Parity

Western AustraliaGas Pricing Trend

Gas Price

Time

27

Reindeer Development

� 45% WI, Apache operator

� FID achieved 2Q08

� CAPEX $379m (net)

� First gas end 2010

� 400-600 bcf resource

� Rate ~90mmscf/d (net)

� Substantial market opportunity

Fast-tracking discovery…

…to exploit current gas price

Dampier

WesternAustralia

IndianOcean

Reindeer

Unmanned 6 slot platform in 65m of water

Legend

Santos acreage

Oil field

Gas field

Oil pipeline

Gas pipeline

Proposedgas pipeline

Single 3 phase export pipeline

Onshore Processingat Devil’s Creek

(WA-209-P)

Varanus Is.

Cooper Basin OilMark Macfarlane

Vice President - Development

29

Future scale of program will be determined by economics …

Cooper Basin Oil

� Results from low permeability reservoirs disappointing

� Success in deeper / higher rate reservoirs

� Optimising target selection whilst rebuilding inventory

� 2008 drill results substantially better than 2006/7

� 75 wells in 2008, F&D ~$45/bbl

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2004 2005 2006 2007 2008 2009 2010 2011

Net (bopd)

Base 2006/7/8 Program Expected Upside

Low perm. reservoirs

0

200

400

600

800

1000

1200

1400

0 50 100 150 200 250 300

2P Ultimate Recovery kbbl

Initial Rate (bopd)

2006 and 2007 wells

2008 YTD wells

Cooper Basin Oil Forecast

30

-

500

1,000

1,500

2,000

2,500

3,000

Jan-70 Jan-75 Jan-80 Jan-85 Jan-90 Jan-95 Jan-00

Daily O

il (stb/d

)

0

5

10

15

20

25

30

Cumulative O

il (mmb)

Daily Oil Primary & GIPM Cumulative Oil

Enhanced Oil Recovery

� Successful CO2 flood analogies

- North/South Cross, USA

- Incremental 30-40% Recovery Factor

� Santos Tirrawarra field

- Similar permeability range, better oil properties

- Wider spaced wells, twice the depth

- Lower recovery factor

Application of global technology locally …

Complexity/Cost

Reco

very Factor 25-65%

15-45%

5-35%

North Cross CO2 Flood

Primary Secondary Tertiary

eg

waterflood

eg

freeflow

eg CO2

flood

31

Moomba Carbon Storage (MCS) Phase 1

� Previous experience with successful ethane injection in Tirrawarra

� Raw gas injection pilot in Fly Lake to start in 2H 2008

� Current Tirrawarra recovery factor low

� Potential incremental 10-50 mmboeincluding gas/gas liquids from EOR

� Dedicated team working pre-FEED now

- Drawing on international expertise

… is the beginning of the MCS journey

Ability to inject to 1 mmtpa CO2 …

Tirrawarra OHIP (gross)

0

100

200

300

400

500

600

700

2P O

HIP

Produce

d

Rese

rves

EOR

Target

mmboe

32

Exploration

2014201320112008

Patricia-Baleen Plant Upgrade

Kipper

Henry (VIC/P44 Stage 2)

Fairview CSG 115 TJ/Day

2015201220102009200720062005Project

Eastern Australia Gas - Milestones

Discovered July 2005

Discovered 1986

Pre-production Production Milestone

Jarver & Pecten East Wells Netherby Well

FID Startup

FID StartupFEED

FID StartupFEED

FID StartupFEED

Pre-FEED

33

WA & Cooper Oil - Milestones

2014201320112008

Exploration

Jackson to Moomba Pipeline

Cooper Oil

Reindeer

2015201220102009200720062005Project

Pre-production Production Milestone

FID StartupFEED

FID StartupFEED

Charon Well

Discovered 1997

Pre-FEED

Growth in LNGDavid Knox

Acting CEO34

35

Legend

LNG Plant

STO Relative Size

Exploration

Development

Production

2020 LNG Growth Aspiration

Browse LNG

Santos (Op): WA-274-P 30%Santos (Op): WA-281-P 47.83%

DLNG2

Santos (Op): Petrel 95%Santos (Op): Tern 100%Santos (Op): Evans Shoal 40% Santos: Barossa Caldita 40%

AspirationalAspirational LNG Production by 2020:LNG Production by 2020:

Gross Gross STOSTO

((MtpaMtpa)) ((MtpaMtpa))

GLNGGLNG 1010 66

PNG LNGPNG LNG 1010 1.81.8

DLNGDLNG 66 < 2< 2

Browse LNGBrowse LNG 1010 <0.5<0.5

Kutei LNG

Santos: 20-50%DLNG1 & Bayu-Undan

Santos 11.4%

PNG LNG

Santos: 17.7%

GLNG

Santos (Op): 60%

GLNG

DLNG

PLNG

Kutei

Browse

CSG AssetsMark Macfarlane

Vice President - Development36

37

Burgeoning Australian CSG Industry

� Key metrics of the USA CSG industry include:

- 20 producing basins

- 40,000 producing wells

- Average 0.1 mmscf/d/well

- 9% of USA production

- San Juan producing for 20 years (14 Tcf recovered to date)

� Australian CSG is on the same journey although with better quality assets

- 3 producing basins

- Average 0.7 mmscf/d/well

- 25% of the Eastern Australian gas market

- The limiting factor on Australian production to date has been the size of the domestic market

Australian CSG production growth is following a similar pathway to the more established CSG resources in the USA

Historic CSG Production

(USA vs Australia)

0

200

400

600

800

1000

1200

1400

1600

1800

1 3 5 7 9 11 13 15 17 19 21 23 25 27

Years from Production Start

Annual Production (PJ)

USA Australia

38

acceptable� good��

Santos CSG Assets are World Class

�������������������Scotia

��

���

���

��

��

Coal Thickness

���������Black Warrior

���������Powder River

����������������San Juan

�������������Roma

������������������Fairview

GIP/WellSpacingFlow RateSaturationPermeabilityGas

ContentField

Source: JPT February 2008, Santos

Fairview, Roma and Scotia rank them amongst the world’s best CSG assets

� Continued development at Fairview and Roma may indicate there ismore to come

best in class���Santos assets

39

CSG Reserve Development – Key Milestones

1P3P 2PPROPECTIVERESOURCE

CONTINGENT RESOURCE

� Geologicalreview

� Core holes� Geologicalreview

� Seismic

� Core holes� Core holes� Pilot wells

� Pilot wells� Development wells� Field development

GD

Qld

40,000 PJ

427* PJ1,035* PJ2,911* PJ7,523* PJ21,000 PJ

GD: Gunnedah *Adjusted for 40% Sell Down

40

Santos’ Leading CSG Acreage Position

Queensland

New South WalesLegend

Santos acreage

Oil pipeline

Gas pipeline

Brisbane

Gladstone

Newcastle

Santos hascaptured 50-70Tcf of potential

resource

GunnedahBasin

SuratBasin

BowenBasin

Denison

� 0.8 million acres (net)

� Exploration stage

� Same coals as Fairview

Gunnedah

� 5.1 million acres (gross)

� 20 core holes in 18 months

� Leverage to NSW markets or potential longer term LNG

Greater Scotia

� 0.5 million acres (net)

� 27 TJ/d production

� Production since 2002

Greater Roma

� 1.4 million acres (net)

� High quality resource

� Active pilot program

Greater Fairview

� 0.8 million acres (net)

� 72 TJ/d production

� Wells up to 10 TJ/d

41

Production Delivery

CSG production capacity is not constrained by well capacity

0

20

40

60

80

100

120

140

160

180

May-05

Aug-05

Nov-05

Feb-06

May-06

Aug-06

Nov-06

Feb-07

May-07

Aug-07

Nov-07

Feb-08

May-08

Aug-08

Nov-08

Feb-09

TJ/d

� Santos is on target to deliver 145 TJ/d CSG sales by Jan 2009

Total Santos Operated CSG Sales Capacity Growth (gross)

FairviewAcquisition

CompressionStation 2added at

Fairview-Wallumbilla

Pipeline Tie-in

Compressor Station 3at Fairview (underconstruction) will

expand total capacityto 145 TJ/d

42

0

2

4

6

8

10

12

14

16

MMscf/d

Wells drilled in last 6 months

Production rate > 1mmscf/d

Fairview Wells Max Rate > 1mmscf/d

Recently Drilled Fairview Wells

Gas flows from recently drilled wells delivering world class rates

43

Outstanding Drilling Performance

0

1

2

3

4

5

6

7

8

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Wells Drilled

Drilling Tim

e: days/well

Since Q3 2007 drilling time has halved

Q3 2007 Q2 2008Q4 2007 Q1 2008

44

We have what’s Needed for Success

Santos has the rigs, equipment and the crews required to execute the field appraisal and development plan

� The first of three new CSG drilling rigs

� We have the rigs required to meet our target wells forecast

-

20

40

60

80

100

120

140

160

180

200

2008

2009

2010

2011

2012

2013

Wells Drilled

Wells for GLNG train 1 only

45

Water Management Strategy

Diversified water management strategy is being implemented

Injection Well

Reverse Osmosis Cropping

Community Use

46

PEL 450

New South Wales

Quirindi

Gunnedah

Scone

Coonabarabran

Dunedoo

Legend

Santos acreage

Gas pipeline

Gunnedah Basin

� Santos has secured access to majority acreage positions (up to 21,000 km2 gross)

� Quality and material land position to allow building of major new business

� All Santos operated

� Up to 20 coreholes in next 18 months

� Contingent gas resource, first booking expected in 2009

Legend

PELA93

PEL12

PEL 1

PEL 452

PEL 456

40TCF prospective resource…

Gladstone LNGDavid Knox

Acting CEO

48

GLNGTM: Responds to Observable Trends

GLNGTM

� World class unconventional reserves to fulfil

� Growing Asia Pacific demand for LNG

� From a secure supply source in Australia

� To capture rising price of scarce energy

Queensland

Gladstone

5 km

Gladstone

Curtis Is.

ProposedLNG Facility

Fairview

Roma

Scotia

Brisbane

49

The Transaction Announced

PartnerPETRONAS a global top 3 LNG producer with more than US$50 billion in annual revenue

Participation 40% interest in Integrated Project

AmountUS$2.508 billion consisting of US$2.008 billion plus US$500 million upon FID of GLNGTM Train 2 using JV gas

AlignmentSantos and PETRONAS fully aligned across the value chain: upstream resource, development, operation and LNG marketing

OperatorSantos to continue as upstream operator

Joint operating company will develop and operate the pipeline and LNG plant and undertake marketing

Completion Expected to close within 3 months

AssetsStructure ensures assets and revenues held directly by Santos and PETRONAS

50

GLNGTM JV - Upstream Assets

GLNG JV Acreage

Fairview (PLs 90, 91, 92, 99, 100 & 232)

• Santos operated with a 79.5% working interest decreasing to 68.5% after project payout

• Acquired by Santos in 2005 with an established production history of over 14 years

Greater Fairview (Arcadia) (PLs 233, 234, 235 & 236; ATPs 526P and 653P)

� PLs 233, 234, 235, 236; ATP 526P: 79.5% working interest decreasing to 68.5% after project payout

Roma (PLs 3, 4, 5, 6, 7, 8, 9, 13 & 93; PLAs 250 & 251; ATP 336P (Roma South) & ATP 631P (North))

� Up to 100% Santos owned and operated

� Direct access to gas market via Wallumbilla hub

51

GLNGTM

2 Train Gas Profile: 10,830 PJ

-

50

100

150

200

250

300

350

400

450

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

2035

2036

2037

2038

2039

2040

2041

2042

2043

2044

2045

2046

2047

2048

2049

2050

PJ/y

Domestic Contracts LNG Exports New Domgas

Pipe / LNG Plant Fuel 3.0 Mtpa 6.0 Mtpa

Fuel Gas1080 PJ

2 Train Gas Sales8500 PJ

52

Transaction Underpins Santos’ CSG Value

7,5232,9111,035Remaining CSG reserves

2,9691,600538Sold to PETRONAS

10,4924,5111,573YE 2007 total CSG reserves

Contingent resource1

3P2P PJ (as of end 2007)

Santos’ Coal Seam Gas Reserves and Resources

� Transaction value US$2.508 billion

� Santos retains approximately 70% of its CSG reserves and resources

� Santos retains approximately 89% of its total 2P oil and gas reserves

1 Contingent resource is defined as the high side (3C) contingent resource estimate

53

� Validates GLNG Project Leading CSG to LNG project

Creating Significant Value for Santos

Re-rates existing CSG resource�

Enhances GLNGTM project delivery via PETRONAS strength of technical expertise and market position�

New valuation benchmark for gas in Eastern Australia�

Simple deal structure – 60/40 alignment across the integrated project�

Enhances LNG marketing strategy – PETRONAS has delivered 5,500 on-time cargoes�

54

PETRONAS: A Leader in LNG

Global Net Equity Production

0

5

10

15

20

25

Qatar Petroleum

Sonatrach

PETRONAS

Shell

PERTAMIN

A

BP

NigeriaNPC

ExxonMobil

BG

TOTAL

Oman Govt

Mitsu

bishi Corp Eni

ADNOC

Brunei Gov't

Repso

l-YPF

JILCO

Mitsu

i

ConocoPhillips

Marathon

Chevron

Woodside

Million tonnes of LNG per annum

Source: PETRONAS

� PETRONAS operates the PETRONAS LNG complex, the world’s largest single integrated LNG facility with a total capacity of 23mtpa from 8 LNG trains.

� PETRONAS is also a partner in the ELNG Project in Egypt with a capacity of 7.2mtpa from 2 LNG trains.

� PETRONAS has delivered over 5,500 cargoes from the PETRONAS LNG complex in Malaysia.

� PETRONAS is the world’s largest owner-operator of LNG ships.

Number 3 globally in LNG and number 1 in Asia

55

GLNGTM Project Progress Summary

2008 FEED

FID2009/10

First Gas2014

�Pre-FEED by Foster Wheeler and Bechtel

PETRONAS selected as partner����

�Environmental applications lodged

�Significant project status awarded

�Freehold land acquired for liquefaction facilities

56

Santos: Leading the way in CSG to LNG

� PETRONAS selected as partner, acquires 40% interest in GLNGTM for up to US$2.508 billion

� Sets new valuation benchmark for gas in Eastern Australia

� PETRONAS is the leading Asian LNG company

� Gladstone LNG is the leading LNG project in Queensland

� Choice of leading Asian company for flagship project is tangible demonstration of Santos’ vision

� Santos is positively positioning itself to work with Asian NOC’s

PNG LNG & Darwin LNGJohn Anderson

Vice President - Strategic Projects57

58

PNG LNG Builds Momentum

� Pre FEED work on two train 6.3 mtpa plant

� Marketing RepresentativeAgreement

� Coordinated Development and Operating Agreement

� Gas Agreement

� FEED Entry Decision

� Marketing commenced

� Finance strategy

� Buyer Heads of Agreement

� Final Investment Decision

PNG LNG is moving toward final investment decision…

��������

��������

��������

��������

��������

4Q 08

4Q 09

4Q 08

��������

Hides & Angore

Gobe

Kutubu & Agogo

Juha

Port Moresby

LNG Plant

MarineTerminal

Legend

Gas processing facility

Oil pipeline

Gas pipeline

Condensate pipeline

59

PNG LNG Expansion Options

� De-bottlenecking expected:

- Typically 8 - 15% capacity increase

� Train 3 of 3.15 mtpa:

- Existing pipeline, roads, bridges

- Existing LNG site and jetty

- Hides is key supply source for T3

- T3 is a real project opportunity

0

2

4

6

8

10

12

14

16

T1, T2 De-bottle T3mmboe pa

2020 vision (Santos share)

…an important project to Santos’ growth story

Assumes Santos equity of 13.7% after State back in

60

Bayu-Undan and Darwin LNG

� De-bottlenecking/mini LNG expansion (studies underway)

� Commercial tolls on any infrastructure used by 3rd party projects

� Santos’ uncontracted reserves to potentially play into new LNG projects

� Spot cargo opportunities

� Enhanced liquids recoveries through 2nd phase drilling campaign (2009-10)

Base project continues to deliver with potential upside unfolding…

Santos equity increased to 11.39% in 2007

61

Multiple Pathways to Growth

Timor Bonaparte

� A new LNG train in Darwin

- 3-4 mtpa

� Floating LNG

- 1-2 mtpa

Browse

� Ichthys North Q3 2008 drill

� Unitisation with existing LNG plans a real possibility

Legend

Santos acreage

Oil field

Gas field

Oil pipeline

Gas pipeline

NorthernTerritory

WesternAustralia

DarwinIndianOcean

EvansShoal

Petrel

Tern

Barossa

Bayu-Undan

Ichthys

Caldita

62

Recent Activity Confirms Acreage Scarcity

Major parties enter Timor Bonaparte/Browse confirming LNG scarcity…

NorthernTerritory

WesternAustralia

Legend

Santos acreage

Other acreage

Oil field

Gas field

Oil pipeline

Gas pipeline

Darwin

PETRONAS 3Q 2007

Sinopec 2Q 2008

ENI Renewing

OMVShell 1Q 2007

Total 2Q 2008

Murphy 3Q 2007

Apache/Total 2Q 2008

CNOOC 3Q 2007Total 3Q 2007

Sinopec

ExxonMobil 3Q 2007

Reliance 3Q 2007

63

LNG Growth - Milestones

Browse

2014201320112008

DLNG 1 (Bayu Undan)

PNG LNG

Gladstone LNG

2015201220102009200720062005Project

Pre-production Production Milestone

FID

Startup

FEED

FID

Startup

Pre-FEEDHides FieldDiscovered 1987

StartupDiscovered 1995

Ichthys North 1 Well Drilled

Pre-FEED

FEED

Asia Growth & ExplorationTrevor Brown

Vice President – Geoscience and New Ventures64

65

2004

Net Area: 92,000 km2

Exploration: 4 Countries

Production: 3 Countries

2004

2008

Net Area: 130,000 km2

Exploration: 8 Countries

Production: 4 Countries

Global Acreage Position & Production Base

Australia

PNGIndonesia

USA

Exploration Production

Exploration Production

Australia

PNG

Vietnam

Indonesia

Kyrgyzstan

India

BangladeshEgypt

2008Increasing Asia Focus

66

� Expl/Dev/Prodn� Near-medium termoil and gasEgypt

Kyrgyzstan

India

Vietnam

Indonesia PNG

Australia

Bangladesh

Execution of Focused Strategy

2008

Legend

Exploration

Production

� Expl/Prodn� Material gas andgrowth markets

67

Vietnam

� Prospective, lightly explored basins

� Multiple, material play types

� Oil and gas potential

� Rapidly growing markets

� Strong regulatory regime

Phu KhanhBasin

Nam ConSon Basin

Song HongBasin

101-100/04 PSC

123 PSC

12W PSC

China

Vietnam

Thailand

Laos

Burma

Cambodia

South ChinaSea

Legend

Santos acreage

68

Vietnam – Nam Con Son Basin

� Chim Sao/Dua (STO 37.5%)

- Reservoir and facilities studies underway

- Project sanction in 2H 2008

- Expression of interest prepared for FPSO supply

- Target first oil in 2010

� Exploration wells commence June 2008

Two oil discoveries, with follow-on opportunities

Chim Sao/DuaDevelopment Concept

WellheadPlatform

WellheadPlatform

Jack-up Rig

Dua Field

Chim Sao

Legend

Santos acreage

Oil field

Gas field

Prospect

Gas pipeline

12W PSC

Chim Sao oil discovery

Dua oil discovery

South ChinaSea

ChimUng

Chim Cong

Swan Nam Con Son Basin

69

Bay of Bengal – India / Bangladesh

� Material Gas targets

� Enormous, underexplored, prospective tertiary delta near rapidly emerging markets

� India

- PSC’s signed March 2007

- 17,250 line km seismic survey completed – currently processing

� Bangladesh

- Acquisition of interests Oct 2007

- Production optimisation at Sangu

- Appraisal planning for gas discoveries

- Bids submitted for offshore blocks

India

Bangladesh

India

Burma

Legend

Santos acreage

Application block

Gas field

Oil pipeline

Gas pipeline

Bay of Bengal

Sangu

70

Indonesia

� Stable base production

- Oil (Oyong)

- Gas (Maleo)

� Near field development opportunities

� Strengthening domesticgas market

� Exploration upside

Legend

Santos acreage

Kutei

West Natuna

East JavaOyong, Maleo

Australia

West PapuaIndonesia

Indian Ocean

250km

71

Indonesia – Oyong & Wortel

� Oyong Phase 1 (oil)

- First oil achieved in September 2007 at ~8,000 bopd

� Oyong Phase 2 (gas and oil)

- 60km pipeline to Grati

- Gas sales to PT Indonesia Power

- Engineering and construction in progress

- First gas Q3 2009

� Potential Wortel synergies

- Infill seismic acquired in 2007

- Development planning in progress – potential tie backto Oyong

- First gas targeted in 2010

Legend

Santos acreage

Oil field

Gas field

Oil pipeline

Gas pipeline

Grati

East Java

Surabaya

OyongWortel

72

Exploration

India

2014201320112008

Bangladesh

Chim Sao Dua

Wortel

Oyong Ph2

2015201220102009200720062005Project

Asian Growth - Milestones

Pre-production Production Milestone

FID StartupFEED

StartupFEED

Pre-FEED

Chim Ung & Chim Cong Wells Kyrgyzstan & Egypt Wells

Discovered 2001

CountryEntry2006

CountryEntry2007

CountryEntry2007

Startup

3D Seismic

Magnama, Hatia Wells 3D Seismic

Exploration Well2D Seismic

FID

FID

73

Banjar-Panji Update

� Area impacted remains ca. 650 hectares

� Current funding

- Infrastructure:Government of Indonesia

- Land and buildings:Minarak Lapindo Jaya

- Santos PSC spend:US$29.4m

� WALHI legal case rejected (being appealed)

� Santos provision: US$79.0m

2008 GuidancePeter Wasow

Chief Financial Officer74

75

Outlook for 2008

� Production

- Initial 2008 guidance maintained at 56-58mmboe

- Assuming GLNG sale is effective 31 Aug -0.5mmboe

- Guidance including sale 55.5-57.5mmboe

� Costs

- Initial production cost guidance maintained at $60 million more than 2007

- Assuming GLNG sale is effective 31 Aug $57 million more than 2007

- DD&A guidance maintained at $12.30/boe (no change)

� Capital expenditure

- Initial capital expenditure guidance maintained at $1,500 million

- Assuming GLNG sale is effective 31 Aug -$75 million

- Guidance including sale $1,425 million

Initial guidance maintained

Wrap upDavid Knox

Acting CEO76

77

Santos “Beyond the 2P”

Cooper Tight Gas – next phase

of unconventional growth

Cooper Gas – opportunity from

improved recovery as prices re-rate

Cooper Oil – pursue high value

scalable exploitation opportunities

Tirrawarra Oil / MCS1 –

application of global technology to local opportunity

Infrastructure – utilising

footprint as gas market decouples

Asian Growth

LNG

Australia Base

GLNG – continuous

multi-TCF reserves bookings, exploiting world class scalable CSG assets with leading LNG partner

PNG LNG – Expansion

opportunities

Ichthys – good prospect

in great neighbourhood

DLNG expansion – multiple

pathways for brownfield expansion

Near-term oil and gas development

in Oyong and Wortel

Multiple TCF gas prospects

in Bay of Bengal

Near term oil development

in Chim Sao/DuaSignificant oil prospects

in Vietnam

PNG LNG – significant

project underpinned by world class gas reserves

Volume growth –

gas-fired power generation in CO2 constrained world

Price growth –

arbitrage between domestic and export markets close

Gunnedah – future

growth from multi-TCF quality assets

78

Through:

� Delivering the base

� Tapping our resource riches

� Being a great place to work

…and do it all safely and sustainablyto deliver a superior shareholder return

An Australian Company Providing Energy for Asia

Santos Investor Seminar3 June 2008

79

Reference Slides

80

81

Q4 08

Q4 08

Q4 08

Q4 08

Q3 08

Q3 08

Q3 08

Q3 08

Q2 08

Q2 08

Q2 08

Q2 08

Q2 08

Q2 08

Q1 08

Timing

Drilling33��OilHoutman / AustraliaCharon 1

On schedule100��GasBonaparte / AustraliaFrigate Deep 1

Drilling (Partial carry)

55��GasSorell / AustraliaJarver 1

On schedule50��GasOtway / AustraliaPecten East 1

On schedule50��GasOtway / AustraliaNetherby

Partial carry30��GasBrowse / AustraliaIchthys North 1

P&A37.5��OilBarrow / AustraliaJohnson 1

Gas Discovery37.5��GasBay of Bengal / Bangladesh

Hatia 1

Carried40��OilGulf of Suez / Egypt South East July 1

delayed45��GasEast Java / IndonesiaUbur-Ubur 1

delayed45��GasEast Java / IndonesiaPare 1

On schedule70��OilFergana / KrygyzstanSoh 1

On schedule70��OilFergana / KrygyzstanTuzluk 1

On schedule37.5��OilNam Con Son / VietnamChim Cong 1

On schedule37.5��OilNam Con Son / VietnamChim Ung 1

%100 - 50050 - 1000 – 50

CommentsSantosInterest

Upside Resource Potential (mmboe)TargetBasin / AreaWell Name

2008 Forward Exploration Schedule

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

82

Contact Information

Registered and head office

Share Register

Adelaide

Ground Floor, Santos Centre

60 Flinders Street

Adelaide, South Australia 5000

GPO Box 2455

Adelaide, South Australia 5001

Telephone: +61 8 8116 5000

Facsimile: +61 8 8116 5050

Useful email contacts

Share register enquiries:

share.register@santos.com

Investor enquiries:

investor.relations@santos.com

Andrew Nairn

Group Executive Investor Relations

Level 10, Santos Centre

Direct: + 61 8 8116 5314

Facsimile: +61 8 8116 5131

Email: andrew.nairn@santos.com

Brooke Pedersen

Investor Relations Analyst

Level 10, Santos Centre

Direct: + 61 8 8116 7227

Facsimile: +61 8 8116 5131

Email: brooke.pedersen@santos.com

Website:

www.santos.com