SANTOS LIMITED — Capital/Financing Update 2016

Dec 27, 2016

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ASX Announcement

Muruk 1 Drilling Update

28 December 2016

Oil Search Limited, operator of PPL 402, advises that the Muruk 1 exploration well has reached a total depth of 3,130 metres. In line with the pre-drill prognosis, reservoir quality sandstone has been encountered in the primary objective (the Toro Formation). Log data acquisition over the reservoir interval has been largely completed, with preliminary interpretation of this data indicating that the reservoir contains gas with condensate, with no hydrocarbon-water contact observed.

Subject to Joint Venture approval, the rig will commence drilling a geological sidetrack down dip to the north east, to delineate the hydrocarbon-water contact within the Toro Formation.

The Muruk discovery is close to PNG LNG infrastructure and is located between the Hides and Juha gas fields.

PETER BOTTEN, CBE

Managing Director

For further information please contact:

Ian Munro, Executive General Manager, Gas Business Development Tel: +612 8238 8505 Mob: +61 417 980 144

Participants[1]

Oil Search (PNG) Ltd 37.5% Barracuda Ltd (Santos Limited) 20.0% Esso PNG Wren Ltd 42.5% Total 100% 1 Gross interests pre-Government and landowner back-in, rounded to one decimal place (Santos’s interest subject to regulatory approval).

Oil Search Limited Incorporated in Papua New Guinea ARBN 055 079 868

Head office Port Moresby Papua New Guinea

Sydney office 1 Bligh Street Sydney NSW 2000 Australia

Mailing address GPO Box 2442 Sydney NSW 2001 Australia

Tel: +61 2 8207 8400 Fax: +61 2 8207 8500 www.oilsearch.com