Exploration is a key growth driver
for Santos and success with the
drill bit is vital to adding value
for Santos shareholders. During
the past four years Santos has
been working to build exploration
opportunities by:
• acquiring new 
exploration acreage
• adding material 
exploration prospects
• drilling wildcat 
exploration wells.
SUCCESS RATE OF 44% IN 2004
Santos’ 2004 exploration effort
produced good results, as the
Company high graded its
exploration acreage and started
drilling one of the most exciting
portfolios in the industry.
Santos discovered hydrocarbons
in seven of the sixteen wildcat
wells that were drilled, achieving
an impressive success rate 
of 44%.
The program added at least 
93 million boe (including the 
pre-drill estimate for Jeruk) of
recoverable resources that will be
further evaluated by delineation
and, in some cases, production
history to determine 1P and 2P
reserve additions.
Importantly, these results were
achieved with financial discipline,
spending $126 million which was
substantially less than forecast.
The most significant drilling 
result for the year was the Jeruk
oil discovery in the Sampang PSC
offshore East Java, Indonesia. 
The Jeruk discovery is still under
evaluation but its commercial
significance appears encouraging.
Santos has confirmed an oil
column of at least 379 metres
with a likely gross recoverable
resource in excess of the pre-drill
estimate of 170 million barrels.
Santos also had further
exploration successes in the
Cooper Basin in central Australia
where four of six wildcat wells
were cased and suspended as 
gas discoveries.
There was also success in the
offshore Otway Basin with the
Martha gas discovery near the
Casino field, which is currently
being evaluated to determine 
its commercial significance.
Additional drilling is planned to
occur nearby in 2005 to follow 
up this encouraging result.
Santos discovered gas in the
United States at the Torres 1A
onshore well, which was brought
onto production only two months
after drilling was completed.
Other wells in the offshore Otway
Basin included the deep water
Amrit 1 well, which was plugged
and abandoned after failing to
intersect economic hydrocarbons,
and Callister 1 which was also
plugged and abandoned with 
gas shows.
Creating Opportunities
DELIVERING ON THE EXPLORATION STRATEGY
Annual Report 2004 15
Float-off of Jack Bates rig 
prior to deep water drilling
operations, offshore Otway 
Basin, Victoria.
‘2004 was a great year for our
explorers. We started drilling
one of the most exciting
portfolios in our industry and
our success to date shows that
our strategy of basin excellence
is delivering. ’
JACQUES GOUADAIN 
Vice President 
Geoscience and New Ventures
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