text: These results have left Santos 
  well positioned to continue its 
  strong investment program which 
  saw capital expenditure peak at 
  $930 million in 2004. 
  
  Production is forecast to increase 
  by 15% in 2005, or by 4% after 
  excluding the effect of the 
  Moomba downtime, to about 
  54 million boe. We expect this 
  positive forward trend to be 
  followed by further production 
  growth of more than 10% in 2006. 
  
  Growing our oil and gas reserves 
  for future production is the goal 
  of our exploration efforts. On 
  a rolling three-year average we 
  have replaced the hydrocarbons 
  that Santos has produced at 
  a rate of 130% of Proven (1P) 
  reserves, at an average 
  replacement cost of around 
  US$7 per boe. 
  
  In 2005 we expect to invest 
  around $850 million of new 
  capital in projects and our 
  strategy is to plan for firm 
  developments based on 
  affordability at relatively low oil 
  prices. If higher prices continue 
  and some projects mature quickly 
  and can be given the green light, 
  our overall capital expenditure 
  may be higher. 
  The Bayu-Undan liquids project 
  came on line in April 2004 
  and, at its increased design 
  throughput of just over one 
  billion cubic feet of gas per day, 
  produced liquids at a rate of 
  100,000 barrels per day. 