text: <html>
          <head> <meta charset="UTF-8">
          <style>
          table, th, td {
              border: 1px solid black;
              font-size: 10px;
          }
          </style> </head>
          <body>
          <table frame="hsides" rules="groups" width="100%%">
              [html]<thead><tr><td>On top of exploration and new ventures growth opportunities,</td><td>Gas swapping will commence in 2005 and could continue until the</td><td>ENERGY HUB STRATEGY</td><td>Santos has a large inventory of gas fields that are yet to be</td><td>end of 2011.</td></tr></thead><tbody><tr><td>1.</td><td>committed to gas contracts.</td><td>A second gas swap, from eastern</td><td>These fields, known as contingent resources, represent significant</td><td>Queensland to Gippsland, moved gas through three states and five joint ventures, expanding market</td></tr><tr><td>opportunities for Santos.</td><td>horizons for partners and</td><td>Each year Santos works towards</td><td>providing backup options</td><td>commercialising these fields by</td></tr><tr><td>to customers.</td><td>Table</td><td>finding new gas contracts or</td><td>EXPANDED CASINO CONTRACT</td><td>extending existing contracts</td></tr><tr><td>ENHANCES VALUE</td><td>so that they can be booked</td><td>The commercialisation of the</td><td>Proven ( 1P ) or Proven plus</td><td>Casino gas field in the Otway</td></tr><tr><td>Specificity ( n = 1 )</td><td>Basin, offshore southern Australia,</td><td>Santos ’ contingent gas resources</td><td>continued during 2004 with an</td><td>are largely located offshore</td></tr><tr><td>increase in the quantity of gas</td><td>southern Australia and Western</td><td>being sold under the initial term</td><td>Australia, in the Bonaparte Bas</td><td>sheet signed in September 2003</td></tr><tr><td>offshore northern Australia and</td><td>with TXU for 293 P3.</td><td>onshore Papua New Guinea.</td><td>Table</td><td>Santos continued to deliver on</td></tr><tr><td>in October 2004, the joint vent</td><td>gas commercialisation during</td><td>announced an extension to the</td><td>2004, commercialising 27 million</td><td>original. Gas Sales Agreement tc</td></tr><tr><td>boe during the year. Santos als</td><td>supply up to 420 P3 of gas, and</td><td>achieved positive contract price</td><td>possibly another 105 P3, over 1</td><td>reviews for gas sales that were</td></tr><tr><td>years for the Victorian or South</td><td>The successful appraisal of the field in late 2003 and early 2004 significantly increased the</td><td>UNIQUE ENERGY HUBS DELIVER</td><td>The Casino contracts are unique</td><td>GAS SWAPS</td></tr><tr><td>in that the reserves have been</td><td>Some of the most important gas</td><td>contracted prior to the field being</td><td>production by mid - 2005 enabled active marketing of gas above</td><td>commercialisation achievements</td></tr><tr><td>fully appraised to confirm the</td><td>for the year were the innovative</td><td>quantity of gas available. This</td><td>gas swaps agreements that were</td><td>has allowed the joint venture</td></tr><tr><td>only possible because of Santos</td><td>to undertake appraisal drilling</td><td>In a separate move, designed to</td><td>unique spread of assets across</td><td>and near field exploration</td></tr><tr><td>Australian gas hubs</td><td>programs with the knowledge</td><td>Santos and the other South</td><td>that all of the gas likely to be</td><td>West Queensland Gas Producers</td></tr><tr><td>GUCGTCTGTTTTTTGCTGTGTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTTT</td><td>Sensitivity (%)</td><td>significantly reducing the risk.</td><td>gas swap in May to allow each</td><td>This shortens the time from</td></tr><tr><td>party to supply the other party</td><td>discovery to production a</td><td>contractual obligations in</td><td>different states via the Moomba</td><td>Tuberculosis</td></tr><tr><td>gas hub in central Australia. This</td><td>WA CONTRACTS FAST - TRACK</td><td>arrangement for 200 P3 meant</td><td>30HN BR00KES</td><td>which could be further extended</td></tr><tr><td>that Origin could avoid building</td><td>Santos and its co - venturer</td><td>a pipeline and that Santos could</td><td>Apache won two significant gas</td><td>capture a share of the saving.</td></tr><tr><td>contracts in Western Australia</td></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr></tbody>
          </table> </body> </html>