text: Similarly, our reserve replacement 
  cost for 2004 is above our target 
  due mainly to the high level 
  of expenditure on major 
  development projects during the 
  year. On a three-year average 
  basis, which is more 
  representative of the nature 
  of the business, the result is 
  a reserve replacement cost of 
  US$7.19 – much more in line 
  with our target. 
  
  These programs will continue to 
  contribute at even higher levels 
  going forward for even less cost. 
  
  **A PART OF OUR COMMUNITY**
  Santos engages with many 
  stakeholders and we believe it 
  is important to have rewarding 
  relationships with the communities 
  to which we belong. 
  
  The netback achieved in 2004 
  was an improvement over 2003 
  and was on target due largely to 
  higher average product prices, but 
  also reflected the results of the 
  continuous improvement program. 
  We sponsor a wide range 
  of educational, cultural and 
  community events and programs. 