SANTOS LIMITED — Capital/Financing Update 2015

Nov 8, 2015

Notice reference number: 1366.15.11 Notice date: 9/11/2015

What's this about?				Effective date:9/11/2015
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Title

Santos Limited – Accelerated Renounceable Entitlement Offer with Retail Rights Trading

Description

On 9 November 2015, Santos Limited (ASX Code: STO) (Company) announced a 1 for 1.7 accelerated renounceable pro-rata entitlement offer of new ordinary shares at an issue price of $3.85 per new share to raise approximately A$2.5 billion (Entitlement Offer).

The Entitlement Offer has the following two components.

• An institutional entitlement offer, where offers have been made to qualifying institutional securityholders for them to apply for their pro-rata entitlement (Institutional Entitlement Offer).
• A retail entitlement offer, where offers will be made to qualifying retail securityholders for them to apply for their pro-rata entitlement (Retail Entitlement Offer).

Retail trading of retail entitlements only is expected to commence on Thursday, 12 November 2015 and end on Monday 23 November 2015.

New ordinary shares issued under the Entitlement Offer will rank equally with existing ordinary shares.

The anticipated timetable in relation to the Entitlement Offer is set out below.

Event	Date
Trading halt commencesAnnouncement of Entitlement OfferInstitutional Entitlement Offer opens	Monday, 9 November 2015
Institutional Entitlement Offer closes	Tuesday, 10 November 2015
Institutional shortfall bookbuild	Wednesday, 11 November 2015
Announcement of results of Institutional Entitlement OfferTrading halt lifted	Thursday, 12 November 2015

Trading in ordinary shares resumes on an ex-entitlement basis (ASX Code:STO)
Rights trading of retail entitlements only commences on a deferredsettlement basis (ASX Code: STOR)
Record date for Entitlement Offer
Retail Entitlement Offer opens	Tuesday, 17 November 2015
Retail Entitlement Offer booklet dispatched	Wednesday, 18 November 2015
Settlement of Institutional Entitlement Offer	Thursday, 19 November 2015
Rights trading of retail entitlements commences on a normal settlementbasis (ASX Code: STOR)
Issue and quotation of new shares issued under the Institutional EntitlementOffer (ASX code: STO)	Friday, 20 November 2015
Rights trading of retail entitlements ends (ASX code: STOR)	Monday, 23 November 2015
New shares under the Retail Entitlement Offer commence trading on adeferred settlement basis (ASX code: STON)	Tuesday 24 November 2015
Retail Entitlement Offer closes	Monday 30 November 2015
Retail shortfall bookbuild	Thursday, 3 December 2015
Settlement of Retail Entitlement Offer	Monday 9 December 2015
Issue of new shares under the Retail Entitlement Offer	Thursday, 10 December 2015
Last day of deferred settlement trading in Retail Entitlement Offer shares(ASX code: STON)
New shares issued under the Retail Entitlement Offer commence trading on anormal settlement basis (ASX code: STO)	Friday, 11 December 2015

Settlement issues

Despite the fact that securities are trading 'ex entitlement' on ASX Trade, CHESS will not recognise for settlement purposes the 'ex entitlement' or the 'cum entitlement' tag on CHESS messages and CHESS will not maintain cum balances during the deemed 'CHESS ex-period', i.e. the period commencing on the deemed CHESS ex-date up to and including the record date. However, a record date cum balance will be available the business day following the record date, which will be equal to the registered holding balance at CHESS end of day on the record date. As a result any transfer that occurs prior to record date will be effectively transferred on a 'cum entitlement' basis.

Therefore, Participants must ensure that any transfer, including the priming of Broker Entrepot Accounts, is conducted in accordance with the basis of quote. For example, a transfer in relation to a transaction conducted on an 'ex entitlement' basis should ordinarily only occur post record date.

CHESS will perform automatic diary adjustments to 'cum entitlement' settlement obligations outstanding as at the record date.

Trading issues

ASX will not price a 'cum entitlement' market with respect to trading in the Company's securities. Persons who acquire the Company's securities after the commencement of the trading halt on Monday, 9 November 2015 are not entitled to participate in the Entitlement Offer.

What do I need to do and by when?

For further details, please refer to the Company's announcements.

Need more information?

For more information, call the Santos Offer Information Line on 1300 017 716 (within Australia) or +61 3 9938 4343 (outside Australia) Monday to Friday between 8:30am and 5:30pm (Sydney time).

Issued by Adrian Smythe

Contact Details (02) 9227 0482

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