Caldita-2 P&A'd

Offshore staff

ADELAIDE, Australia -- Santos Ltd. says the Caldita-2 exploration well in the Timor/Bonaparte basin has been plugged and abandoned. The well confirmed gas in the Caldita structure in offshore exploration permit NT/P61.

The field's gas/water contact was also confirmed, and core, wireline log, and formation pressure data was obtained. Caldita-2 was drilled to a TD of 3,973 m (13,035 ft), about 6 km (4 mi) west-northwest of the 2005 Caldita-1 discovery.

Santos has planned a 3D seismic survey over the Caldita and nearby Barossa structures in the NT/P61 and NT/P69 by the end of 1Q 2008. The 3D data will be integrated into the interpretation and subsequent reservoir modeling, leading to a better understanding of the likely resources and future development options.

ConocoPhillips Australia Exploration Pty. Ltd. operates the block with 60% interest. Offshore Pty. Ltd. holds the remaining 40% interest.

2/9/2007