text: Santos continued its proactive 
  approach to capital management 
  with the redemption and buyback 
  of the outstanding Preference 
  Shares and the issue of FUELS 
  (Franked Unsecured Equity Listed 
  Securities). This initiative was 
  driven by the alignment of 
  Australian accounting standards 
  with international requirements, 
  and closed oversubscribed, raising 
  $600 million in new equity. 
  
  In February 2005 we appointed 
  two new Board members, Mr 
  Kenneth Dean from Shell, and 
  Mr Christopher Recny from the 
  international management 
  consultancy firm, L.E.K. These 
  individuals further strengthen 
  the composition of the Board, 
  bringing strong international 
  oil and gas expertise and 
  outstanding management 
  experience. 
  
  Indonesia matured into a core 
  area during 2004, through a 
  strategy of prudent acquisition, 
  portfolio management and 
  exploration. In particular, the 
  Jeruk discovery has the potential 
  to add significant value, with 
  further evaluation activities 
  underway. 
  The total shareholder return for 
  the year, including share price 
  appreciation and dividends paid, 
  was 28% – an excellent result. 
  
  Finally, I’d like to acknowledge 
  the extraordinary effort made by 
  everyone at Santos to keep the 
  Company moving forward during 
  this challenging year. 