Santos Ltd ABN 80 007 550 923 Ground Floor, Santos Centre 60 Flinders Street Adelaide South Australia 5000

GPO Box 2455 Adelaide South Australia 5001

Direct: + 61 8 8116 5000 Facsimile: + 61 8 8116 6723

TO: Company Announcements Office ASX Limited FROM: Company Secretary DATE: 6 June 2011 SUBJECT: INVESTOR PRESENTATION JUNE 2011 Please find attached a Santos Investor Presentation, which is being presented in the US during June 2011. David Lim Company Secretary

1

1

US Investor RoadshowJune 2011

Disclaimer & Important Notice

This presentation contains forward looking statements that are subject to

risk factors associated with the oil and gas industry. I t is believed that the

expectations reflected in these statements are reasonable, but they may

be affected by a range of variables which could cause actual results or

trends to differ materially, including but not limited to: price fluctuations,

actual demand, currency fluctuations, geotechnical factors, drilling and

production results, gas commercialisation, development progress,

operating results, engineering estimates, reserve estimates, loss of market,

industry competition, environmental risks, physical risks, legislative, fiscal

and regulatory developments, economic and financial markets conditions in

various countries approvals and cost estimates

2

various countries, approvals and cost estimates.

All references to dollars, cents or $ in this document are to Australian

currency, unless otherwise stated.

2

Santos overview

One of Australia's leading

upstream oil and gas

companies and has been

operating since 1954

Regional footprint of operations

Kyrgyz RepublicBeibuan Trough

operating since 1954

Current production:

- ~ 600 mmscf/d of gas

- ~ 30 kbbls/d of liquids

Employs 2,400 people

107,000 shareholders

Top-25 ASX listed company: market capitalisation Key statistics (YE 2010)

Production

Exploration

Otway Basin

Bangladesh

India

Phu Khanh Basin

Kutei Basin

Nam Con Son Basin

East Java BasinWest Papua and

Papua New Guinea

Carnarvon Basin

Browse Basin

Timor Sea & Timor Gap

Bonaparte Basin

Amadeus Basin

Cooper Basin

Surat/Bowen Basins

Gippsland Basin

Gunnedah Basin

3

1P reserves 646 mmboe

2P reserves 1,445 mmboe

Contingent resources 2,261 mmboe

2010 production 50 mmboe

2010 2P reserve replacement ratio 331% *

pUS$12 billion (June 2011)

Australia’s largest domestic gas producer and key stakeholder in Darwin LNG, PNG LNG, GLNG and Bonaparte LNG

Key statistics (YE 2010)

* 2010 2P organic RRR

Santos vision and strategy

LNG Markets

Strong

LNGCHANNEL

DOMESTICCHANNEL

A leading Focused

Asian

4

Australian Base

Strategic Domestic Gas positions in EA and WA

genergy

company

in Australiaand Asia

Growth

3

Cooper to

GLNG

Transforming to oil-linked pricing

70% of 1.4bn boe 2P reserves

exposed to oil prices

Asset base is transformed

through sanctioned projects

80

Production (mmboe)

WA legacy

d

Asia

domgas

EA legacy

domgas

contracts

NSW

CSG

LNG

20

30

40

50

60

70

80Oil-linked Legacy domgas

5

Crude,

Condensate,

LPGWA oil-linked

domgas &

uncontracted

domgas

domgas

contracts

0

10

20

2010 2011 2012 2013 2014 2015

Contingent resources of 2.3bn boe

has a similar patternProduction exposed to oil price rises from

27% in 2010 to 70% in 2015

Safety performance

7

rate

Santos TRCFR performance(Employees & Contractors)

1

2

3

4

5

6

ord

ab

le c

ase

fre

qu

en

cy

rm

illi

on

ho

urs

wo

rke

d)

2.3

6

0

1

2006 2007 2008 2009 2010 2011

YTD

To

tal

reco

(pe

r

4

Base production grows to record levels

Production (mmboe)

Four projects in the base commence production in 2011

Project Santos Gross First

40

50

60

70

Production (mmboe)Project Santos interest

Gross production capacity

First production

Reindeer/ Devil CreekWA

45% 215 TJ/d1 4Q 2011

SparWA

45% 50 TJ/d2 2 June2011

Chim SáoVietnam

31.875% 25,000 bbl/d 2H 2011

7

30

2011 2012 2013

Production Range

WortelIndonesia

45% 90 TJ/d3 End 2011

1 Gross processing capacity of Devil Creek gas plant. Plant is init ially

planned to operate at 120TJ/d sales.

2 Gross capacity from Halyard well. Capacity to increase to 100 TJ/d

gross in early-2013 with the tie-in of Spar-2 well.

3 Combined gross production from the Oyong and Wortel fields.

Production 49 9 mmboe (8% )

Underlying net profit up 46%

Change on 2009

2010 full-year result

Production 49.9 mmboe (8% )

Sales Revenue $2,228 million 2%

EBITDAX $1,672 million 5%

Net Profit After Tax $500 million 15%

8

Underlying Net Profit $376 million 46%

Operating Cash Flow $1,267 million 10%

Final Dividend 15 cents per share 5 cents

5

$8 billion of funding capacity

8

Comprehensive funding plan

executed including:

A$billion As at 31 Dec 2010

1

2

3

4

5

6

7 A$2 billion bilateral bank

facility

€1 billion hybrid with 100%

equity credit from S&P

A$500 million institutional

placement to complete

equity funding required for

GLNG

4.3

2.0

1.5

9

0

G G

Cash Undrawn

corporate

debt

Undrawn

project debt

(PNG LNG)

Cash balance of $4.3 billion excludes proceeds from the sale of a 15% interest in GLNG to Total

and KOGAS announced in December 2010 – transactions completed in early 2011.

GLNG FID signing ceremony, 13 January 2011

L to R: Mike Sangster (Total), Heung Bog Lee (KOGAS), David Knox, Datuk Anuar Ahmad (PETRONAS)

10

Growth in LNG

6

LNG is a key component of Santos’ growth strategy

Strategy

Components PNG LNGBonaparte LNG 2 mtpa FLNGComponents

Darwin LNG Production since 2006

3.6 mtpa single train

Santos 11.5%

GLNG

PNG LNG Sanctioned Dec 2009

6.6 mtpa two trains

First LNG due 2014

Santos 13.5%

Deliver the Base Business

LNG Growth

2 mtpa FLNG

Santos 40% with carry to FID

11

Sanctioned Jan 2011

7.8 mtpa two trains

First LNG due 2015

Santos 30%

Focused growth in Asia

Strategy delivers material LNG growth

5

mtpaGLNG T1

Santos equity LNG productionfrom existing discovered resources

2

3

4

GLNG T1

GLNG T2

BLNG

12

0

1

Darwin LNG

PNG LNGExcludes PNG LNG expansion

2010 2020

7

$16

$18Late 2006

2008-10

Asian Term Prices

Recent contracts

point to strong

d l i d d

Continue to see strong long-term LNG pricing

$6

$8

$10

$12

$14

Ex-s

hip

LN

G P

rice (

$/M

MB

tu

Mid 2006

Late 2005

LN

G P

rice

($

/M

MB

tu)

Oil Parity

underlying demand

Pricing reflects new

supply-demand

equilibrium

Long-term Asia-

Pacific pricing

remains oil-linked

US$12/ MMBtu

13

$2

$4

$6

$20 $30 $40 $50 $60 $70 $80 $90 $100

JCC ($/Bbl)

Source: Poten & Partners

Early 2005

2003Ex

-Sh

ip

14

GLNG

8

GLNG

Two-train 7.8 mtpa GLNG project under construction

FID January 2011

All it f t C ti All permits for access to Curtis

Island and mainland sites at

Gladstone delivered in

accordance with project schedule

Orders placed for long leads

Construction work underway on

Curtis Island and mainland sites

Marine crossing line-pipe

15

Marine crossing line pipe

fabrication completed and being

shipped

US$16 billion capital cost includes

US$2 billion in contingencies

On schedule for first LNG in 2015The Hon. Julia Gillard MP, Prime Minister of Australia,

officially launches works on the GLNG plant on

Curtis Island, 27 May 2011

World-class GLNG contractors

Predominantly fixed price EPC contracting strategy

Project

Component

Description Contractor Contract Type

Upstream surface

facilit ies

All coal seam gas

and water gathering

and processing

infrastructure

EPC contract with

material level of

fixed price

Gas transmission

pipeline

420-kilometre gas

transmission pipeline

from the gas fields

to Gladstone

Fixed price lump

sum turnkey EPC

contract

16

LNG Plant 7.8mtpa 2-train LNG

plant plus associated

infrastructure

Fixed price lump

sum turnkey EPC

contract

9

GLNG 2P reserves for two trains

10,000

2P Reserves (PJ) 5,009 2P CSG reserves at

Dec-101 Actual ProjectedProjected

2,000

4,000

6,000

8,000- NSAI estimated higher 2P

reserves of 5,377 PJ as at end

Oct-101

In addition to CSG reserves,

Santos to supply 750 PJ of

portfolio gas, primarily from

the Cooper Basin

17

0

GLNG CSG Cooper supply

NSAI estimates GLNG

ultimate 2P CSG reserves

maturation of 9,848 PJ from

existing acreage1

NSAI : Netherland, Sewell & Associates, Inc. Based on their analysis, NSAI believe that continued development and appraisal drilling in the GLNG

dedicated areas has a reasonable likelihood of extending the 2P reserves area into most of the regions now categorized as possible reserves or

2C contingent resources.

1 Excludes 750 PJ of Santos portfolio supply

18

PNG LNG, Darwin LNG

and Bonaparte LNG

10

PNG LNG

PNG LNG construction continues to ramp-up

Project PNG LNG

Location Papua New Guinea

Santos interest 13 5%Santos interest 13.5%

Partners ExxonMobil 33.2% , Oil Search 29% , State of PNG 16.8% , Nippon Oil 4.7% , MRDC 2.8%

Project scope Upstream gas & condensate fields Gas transmission pipeline 2-train LNG plant

Gross production capacity

6.6 mtpa of LNG

Pipeline stringing

19

LNG buyers Sinopec: 2.0 mtpa TEPCO: 1.8 mtpa Osaka Gas: 1.5 mtpa CPC: 1.2 mtpa

Project status FID Dec-2009 Under construction Gross capex US$15 billion

First LNG On schedule for 2014 LNG plant site construction camp

PNG LNG

PNG LNG plant site, Port Moresby

20

11

Bayu-Undan / Darwin LNG

Project Bayu-Undan/Darwin LNG

Location Timor Gap, Australia/Timor-Leste

Darwin LNG: continuing strong production

Santos interest 11.5%

Partners ConocoPhillips, ENI , INPEX, TEPCO, Tokyo Gas

Project scope Offshore gas & condensate fields Gas transmission pipeline Single train LNG plant at Darwin

Gross production capacity

3.6 mtpa of LNG100,000 bbl/d of condensate

Bayu-Undan offshore platforms

21

LNG buyers TEPCO Tokyo Gas

Project status Commenced LNG production 2006 LNG capacity upgraded in 2010 to

3.6 mtpa

Darwin LNG plant

Bonaparte LNG

Project Bonaparte LNG

Location Bonaparte Basin, Australia

Innovative floating LNG project; Santos carried to FID

Santos interest 40%

Partners GDF SUEZ 60%

Project scope Floating LNG production

Gross production capacity

2 mtpa of LNG proposed

Project status Project teams in Paris and Perth

22

j j Pre-FEED contracts awarded Jan-

2011 Santos carried to FID

FID Planned for 2014

12

WA 274 P

Argus

Crux

Montara

Legend

Santos acreage

Oil fieldTerritory of Asmore &

Exploration success…

Burnside discovery

WA-281-P

WA-411-P

WA-274-PWA-410-P

WA-274-P

WA-274-PConcerto

PreludeEchuca Shoals

I chthys

Calliance

Brecknock

Torosa

Poseidon

Gwydion

Caswell

Gas fieldCartier I slands

Cornea

Burnside

I chthysNorth

23

Arquebus0 20 40 60 80 100

Western Australia

Mapped Area

…in a great street address

PsepotusKilometres

24

Australia Domestic Gas

13

15% 15%

% of Domestic Gas Production

Australia’s leading domestic gas producer

Santos is Australia's Leading Domestic Gas Producer

15% 15%

11%

9%8%

7%

4% 4%4% 3%

25

Sa

nto

s

BH

P B

illit

on

Exxo

nM

ob

il

Ori

gin

En

erg

y

Wo

od

sid

e

Ap

ach

e

Co

no

co

Ph

illip

s

BG

Gro

up

Sh

ell

BP

Source: Energy Quest May 2011

Domestic channel – Room to grow

Gas Penetration as % of Power Generated

90%

100%

90%

100%

9% 9% 11%

37%

50%

20%

30%

40%

50%

60%

70%

80%78%

68%64%

54%

35%

23%20% 18%

12%20%

30%

40%

50%

60%

70%

80%

26 Source: EIA, AER, Santos

9%5% 3%

9% 11%

0%

10%

Austr

alia

NS

W/A

CT

VIC

TA

S

QLD

WA

SA

12%9% 8%

0.5%0%

10%

Sin

gap

ore

Th

ailan

d

Mala

ysi

a

Califo

rnia

UK

Jap

an

US

Ko

rea

Germ

an

y

Aust

ralia

Ind

ia

Ch

ina

14

Eastern Australia

Queensland

Santos’ gas supply infrastructure

in eastern Australia provides

substantial flexibility in gas supply

Pt Bonython

NewSouth Wales

Moomba

Ballera

SouthAustralia

Surat/ BowenFairview, Roma,

Scotia, Arcadia

Gunnedah

substantial flexibility in gas supply

Santos has assets in every

producing basin

Santos’ portfolio gas provides

significant optionality in gas

supply: eg 750 PJ supply contract

to GLNG

GLNG connected to existing

27

Oil pipeline

Gas pipeline

Legend

Santos permits

250km

Victoria

GippslandOtway

integrated gas infrastructure

Gross Unrisked Resource PotentialMoomba

TOOL DARA

Developed

UnconventionalResources

Reports of the Cooper’s Death are Greatly Exaggerated

Booked Contingent

Resources ~ 5,000 PJ

ROSE EPSI MTRE

Shale Gas

Tight Gas

Conventional

Undeveloped

Unconventional

Gross gas thickness

~ 1600 feet

28

Note: Gross volumes

Unconventional Resource

Potential: 39,000+ PJ

PATC

GRANI TE

Gas

Deep Coal

15

Santos and Eastern Star Gas (ESG)

operated permits cover 60,000 km2

Santos holds 35% interest in ESG

Basin master position with > 50 tcf prospective potential

NewSouth Wales

Narrabri

PEL

PPL 3

PAL 2

Wilga Park Power Station

Gunnedah Basin – Next major play in coal seam gas

Santos holds 35% interest in ESG

operated permits and owns 20.97%

interest in ESG Ltd

Santos interests in Santos operated

permits:

- 100% : PEL 450, 452 & 462

- 25% : PEL 1 & 121

- 15% : PEL 4562

Santos net 2P reserves 739 PJ as at

South Wales

Dubbo

Gunnedah

Tamworth

434

PEL

450PEL

462

PEL

12

PEL 238

PEL 433

PEL

456

PEL 1

PALA 5PEL 452

29

Santos net 2P reserves 739 PJ as at

Dec-20103

Initial exploration underway in Santos

operated areas

Focussed on commercialisation

50km

Legend

Santos operated acreage

Eastern Star operated acreage

Gas pipeline

Proposed gas pipeline

Newcastle

1 Santos can increase its interest in PEL 1 & 12 to 65% via farm-in2 Santos can increase its interest in PEL 456 to 50% via farm-in3 Net economic interest in reserves including beneficial interest via Santos shareholding in ESG

WA Domestic Gas: Increasing Demand

Demand 2010 2020

Mining 20% 34%

Electricity (SWIS) 30% 28%

Alumina and Ammonia 41% 31%3%Onslow

Dampier

Port Hedland

Alumina and Ammonia 41% 31%

Residential/Commercial 9% 7%15%

3%3%

2%

Exmouth

2010 Demand

by location*

Expect demand to increase from 960 TJ per

day (2010)* to 1,230 – 1,535TJ per day

(2020)*

Asian demand for WA mineral exports is

driving energy demand growth in WA

30

9%

3%

29%

27%

PERTH

Bunbury

Kalgoorlie Mining sector growth significantly outpaces

other sectors. I ron ore is the key driver.

Growth expected across the market in

absolute terms

* Source: McKinsey / Santos

16

Santos supplies gas via one of two existing hubs and one new hub

under construction…

Hub-led strategy

Reindeer

Varanus Is.

John Brookes

Focused NFE

Spar /

Halyard

31

Legend

Santos acreage

Oil field

Gas field

Gas pipeline

Gas hub

East Spar

Devil Creek

…with focused drilling in shallow water close to existing hubs targeting low risk/quick cycle gas tie-back prospects

2010 NFE well

Reindeer/Devil Creek, WA

Reindeer/Devil Creek –

WA’s new domestic gas hubProject Reindeer/Devil Creek

ff

Reindeer wellhead platform installed

Location Carnarvon Basin, offshore WA

Santos interest 45%

Partner Apache 55% , operator

Project scope Unmanned, minimum facility wellhead platform

105-km pipeline to shore Devil Creek gas plant

Gross production capacity

215 TJ/day (Devil Creek gas plant)1

32

Devil Creek gas plant

p y

Project status Reindeer wellhead platform installed

Pipelay complete Devil Creek gas plant construction

continues with all modules delivered to site

First gas On schedule for fourth quarter 2011

1 Gross processing capacity of Devil Creek gas plant. Plant is init ially

planned to operate at 120TJ/d sales.

17

Spar, WA

Spar – Development of Halyard (WA-13-L) and Spar (WA-4-R)

Project Spar

Location Carnarvon Basin, offshore WA

S t i t t 45%Santos interest 45%

Partner Apache 55% , operator

Project scope Tie-back of Halyard and Spar wells to Varanus Island via existing East Spar pipeline

Modifications to John Brookes platform

Gross production capacity

50 TJ/day (Halyard)100 TJ/day (Halyard + Spar)

33

Wing deck module installed on John Brookes

platform

Project status Halyard well drilled and completed Spar-2 well drilled and completed Fabrication, testing and installation

of wing deck module for John Brookes platform complete

Flowline and umbilical fabrication complete

First gas Commenced 2 June 2011

Zola gas discovery

Zola-1 successful gas test of

Triassic horst block on trend

from Gorgon field

Over 100m of net gas pay over

a 400 metre gross interval in

excellent reservoir quality

Further high resolution 3D

acquired

34

Follow-up appraisal drilling in

2012

Santos increased its equity to

24.75%

18

35

Asia Pacific

Indonesia: Madura Offshore PSC

Maleo

Maleo performing beyond expectation; incremental

growth from Peluang

- Production since 2006

- Gross gas production ~ 115 TJ/d

- Long term sales gas contract to PT Perusahaan Gas Negara

Peluang

- Peluang-1 well drilled in

MaduraOffshore PSC

East Java

Madura Island

Peluang-1Maleo

GratiProcessing

Plant

50km

Surabaya

36

Peluang 1 well drilled in 1Q 2009

- Potential t ie back to Maleo to maintain plateau

Legend

Santos acreage

Oil field

Gas field

Oil pipeline

Gas pipeline

East JavaBali

50km

19

Indonesia: Sampang PSC

Oyong Phase 1 (oil)

Oyong Phase 2 delivered; incremental growth from

Wortel

- Production performance above expectation at ~ 3500 bbl/day (gross)

Oyong Phase 2 (oil and gas)

- Gas production start-up on time (Q309) and plateau of ~ 60 TJ/d (gross) reached within 20 days

- Gas sales to PT Indonesia Power

Wortel

Surabaya

Sampang PSC

East Java

Madura Island

50km

GratiProcessing

Plant

Wortel OyongJava Sea

37

- Tie back to Oyong

- FID Nov-2010

- First gas forecast end-2011 Legend

Santos acreage

Oil field

Gas field

Oil pipeline

Gas pipeline

East JavaBali

50km

Wortel, Indonesia

Wortel – Third operated project in Indonesia

Project Wortel

Location Sampang PSC, offshore East Java, IndonesiaIndonesia

Santos interest 45% , operator

Partners SPC 40%Cue Energy Resources, 15%

Project scope Unmanned, minimum facility wellhead platform

10-km gas pipeline to existing Oyong platform

Gas export via existing 60-km pipeline to Grati

38

p p

Gross production capacity

90 TJ/day from combined Oyong/Wortel fields

Project status Sanctioned November 2010 Jacket fabrication underway

First gas On schedule for the end of 2011

20

Chim Sáo, Vietnam

Chim Sao – New oil production for Santos

Project Chim Sáo

Location Block 12W, offshore Vietnam

S i 31 875%

L k E FPSO d i i Si

Santos interest 31.875%

Partners Premier 53.125% , operatorPetroVietnam 15%

Project scope Unmanned, minimum facility wellhead platform

Liquids processing and export via FPSO

Gas export via 100-km pipeline

Gross production capacity

25,000 bbl/day

39

Lewek Emas FPSO under conversion in Singaporecapacity

Project status Wellhead platform and field pipelines installed

Development drilling program and FPSO conversion continue in accordance with project schedule

First oil On schedule for second half 2011

Bay of Bengal

Bangladesh

Potential for medium term exploitation business in

Bangladesh and long term business in India

India- Chittagong gas market

significantly undersupplied

- Sangu well optimisation is extending field life

- Free market gas rights obtained for Magnama

- Recent seismic acquisition has matured drilling opportunities

Bangladesh

Burma

India

India

Bay of Bengal

NEC-DWN-2004/2

NEC-DWN-2004/1

Block 16

Sangu

40

I ndia

- Targeting material gas prospectivity for domestic market

- 3D seismic program largely complete

- Work programme on hold pending border resolution

Legend

Santos acreage

Gas field

Oil pipeline

Gas pipeline

21

41

Reference Slides

2011 Guidance

I tem 2010

Actual

2011

Guidance

Production 49.9 mmboe 47 – 50 mmboe

Production costs $537m $550 – $590m

DD&A expense $11.94/boe $12 – $13/boe

Royalty related taxation expense

(after tax)1

$51m $80 – $100m

Capital expenditure (including $1 9 billion $3 billion

42

Capital expenditure (including

exploration & evaluation)2

$1.9 billion $3 billion

1 Royalty related taxation expense guidance for 2011 assumes an oil price of A$90 per barrel.

2 Capital expenditure guidance for 2011 includes $2 billion for LNG projects, $400 million for other

sanctioned growth projects (Reindeer, Spar, Chim Sáo, Wortel & Kipper) and $150 million for

conventional exploration.

22

Well Name Basin / Area TargetSantos

I nterest

%

Timing

Zola-1 Carnarvon Gas 24.8 Gas discovery

2011 Forward exploration schedule

PEL 1 corehole Gunnedah CSG 25.0 CSG corehole

Finucane South-1 Carnarvon Oil 33.4 Oil discovery

Beam-1 Carnarvon Gas 45.0 Q3

Hoss-1 Carnarvon Oil 31.3 Q3

Tuy Hoa-1 Phu Khanh Oil 50.0 Q3

PEL 462 corehole Gunnedah CSG 100 Q3

PEL 433 corehole Gunnedah CSG 35.0 Q3

ATP685P corehole Surat CSG 50 0 Q3

43

ATP685P corehole Surat CSG 50.0 Q3

South Sangu Exploration Bay of Bengal Gas 100 Q4

Sangu Exploration Bay of Bengal Gas 100 Q4

The exploration portfolio is continuously being optimised therefore the above program may vary as a result of rig availability,

drilling outcomes and maturation of new prospects

Reported & underlying profits

500500

Reported NPAT Underlying NPAT

$m

434 163 (39)(5)

257

376

200

300

400

500

44

0

100

2009 2009 20102010 Operating

result

Prices &

foreign

exchange

Wet

weather

impact

23

60

mmboe

Production impacted by flooding

Production in line with

guidanceProduction

54.4 (2.9)(2.1)

(1.5) 2.0 49.9

10

20

30

40

50

60

Total wet weather and

flood impact on Cooper

Basin was 2.9 mmboe

Stronger gas

production in WA and

Indonesia

Mereenie (NT) gas

45

0

10

2009 2010

( ) g

sales contract expired

end-2009Flooding Natural

decline

and

downtime

New

production

Mereenie

contract

expiry

Sales volumes and revenue

5.2 6.2

40

50

60Third party

mmboe

Higher realised prices

for all products

Sales volumes

2,181

Liquid

Prices

299

Liquid FX

(156)

Gas Prices

128

Gas FX

(48)

Volume

Mix

(176) 2,228

$m

54.9 53.0

0

10

20

30

2009 2010

Own product1 Cooper gas volumes

met by production and

gas from storage

Higher volumes of third

party gas offset lower

own product volumes

Third party gas

46

0

500

1000

1500

2000

2500

20102009

p y g

revenue $185 million

1 Includes gas from storage

24

Production cost and cost of sales

1600

Total cost of salesProduction costs

600$537m$532 $24 70

$m $m

1000

1200

1400Gas

Purchases

Cost of

produced

hydrocarbons1200

300

400

500

$537m$532m $24.70

per boe$23.67

per boe$9.78

/ boe

$10.77

/ boe

47

800

1000

2009 2010

0

100

2009 2010

1 Includes production costs, tariffs, tolls and pipeline costs, royalties, inventory and DD&A

Business Unit EBITDAX

Segment

Change

2010 2009 %

$m $m

Eastern Australia 565 616 (8)

WA&NT 653 629 4

GLNG 48 29 66

Asia Pacific 111 95 17

Gains on sale of assets 313 246 27

Corporate and unallocated items (18) (27) 33

TOTAL EBITDAX 1 672 1 588 5

48

TOTAL EBITDAX 1,672 1,588 5

Eastern Australia | Higher prices offset by lower liquids volumes due to wet weather

WA&NT | Higher prices offset by lower volumes

GLNG | Higher volumes and lower costs

Asia Pacific | Higher volumes and lower costs

25

DD&A declines by $17 million

Volume Rate

$m

Lower depletion primarily

due to lower production

volumes

200

300

400

500

600

700

612 (36) 19 595volumes

Partially offset by impact

of higher rates

2011 guidance $12/boe

49

0

100

200

2009 2010

$11.25/boe $11.94/boe

Acq/Revisions

&

Reserves growth and resource conversion

mmboe mmboe

1000

1500

2000

1440

Prod

(50)

Revisions

35 130

q/

Dives

(110) 1445

Commercialisation

1000

1500

2000

2500

3000

2498 (130)

Divest

(110)

&

Expl

(5)

Acq

8 2261

mmboe mmboe

Commercialisation

To cash To cash

50

0

500

0

500

1000

2009 2010

Contingent

resources

(2C)

Reserves (2P)

20102009

26

Underlying profit 376 257

Significant items (after tax)

2010 2009$m

y g p

Significant items 124 177

Net profit after tax 500 434

Significant items included:

Net gains on asset sales 214 180

Impairment of non-current assets (101) (17)

Impairment of receivables (22) -

Provision of contract losses: rigs and offices - (17)

Foreign currency losses (7) (21)

51

Foreign currency losses (7) (21)

Remediation and related costs of incidents 4 19

Change in fair value of embedded derivatives - 3

Net profit/ (loss) impact of fair value hedges (5) 3

Investment Allowance 4 21

Other income tax 37 6

Total 124 177

2011 Sensitivit ies

Sensitivity Change NPAT Impact

A$m

US dollar oil price + US$1/bbl + 9

Gas price + 10 cent/GJ + 17

A$/US$ exchange rate + 1 cent -8

52

27

Contact Information

Head office

Adelaide

Ground Floor, Santos Centre

60 Flinders Street

Andrew Nairn

Group Executive Investor Relations

Level 10, Santos Centre

Direct: + 61 8 8116 5314

Adelaide, South Australia 5000

GPO Box 2455

Adelaide, South Australia 5001

Telephone: + 61 8 8116 5000

Facsimile: + 61 8 8116 5050

Useful email contacts

Share register enquiries:

web.queries@computershare.com.au

Facsimile: + 61 8 8116 5131

Email: andrew.nairn@santos.com

Website:

www.santos.com

53

q p

Investor enquiries:

investor.relations@santos.com