Santos Discovers Further Oil and Gas on Dua Structure, Offshore Vietnam

Thursday, September 21, 2006

Santos advises that the Dua-5X RE well has intersected multiple gas and oil reservoirs in the southern fault block of the Dua structure. The well was drilled on Block 12E, offshore Vietnam by the operator Premier Oil.

This discovery follows the drilling of the Dua-4X well which encountered oil and gas within the northern fault block of the Dua structure.

Wireline testing of the Dua-5X RE well recovered oil samples and pressure data and preparations are now being made to Drill Stem Test the well.

Dua-5X RE is the first successful intersection of the primary reservoir in the southern fault block of the Dua structure. It was drilled after successful evaluation of the northern fault block where the down-dip extent of the hydrocarbon bearing reservoirs was confirmed by wells Dua-4X and Dua-4X ST1 drilled in May and June this year. These wells were drilled down-dip of the 1974 Dua-1X discovery well which flowed 1,500 barrels of oil per day.

Following completion of testing operations on Dua-5X RE the rig will move to drill 12E-CS-1X well on the Blackbird prospect to explore a large tilted fault block up-dip of a preexisting well (12E-LK-1X) which previously encountered very good oil shows.

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