SANTOS LIMITED — Interim / Quarterly Report 2017

Apr 19, 2017

First Quarter Activities Report For period ending 31 March 2017

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20 April 2017

Key highlights

Costs reduced

• 2017 forecast free cash flow breakeven reduced to US$34/bbl[1] , down from US$36.50/bbl in 2016.

Balance sheet strengthened

• Net debt reduced to US$3.1 billion at the end of the quarter, down from US$3.5 billion at the end of 2016.

• Early repayment of US$250 million in 2019 Export Credit Agency (ECA) debt.

• US$860 million of undrawn bilateral bank loan facilities due to mature in 2018 extended to 2022.

GLNG performance

• GLNG LNG production increased to 1.4 million tonnes for the quarter as continued strong production from Fairview and improved Roma field performance boosted equity gas supply.

Growth in PNG and Northern Australia

• PNG: Muruk gas discovery appraisal continuing.

• Northern Australia: Barossa appraisal underway.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said today’s release of the first quarter results was further evidence the Santos turnaround strategy was delivering positive results.

“Our costs have again been reduced, we have improved our free cash flow position and our net debt has been lowered,” Mr Gallagher said.

“Our 2017 forecast free cash flow breakeven now stands at US$34 per barrel.[1] This is a significant reduction from the $47 per barrel mark at the beginning of 2016.

“Strong free cash flow combined with cash proceeds from asset sales and the Share Purchase Plan enabled us to reduce net debt by US$380 million in the first quarter. This is strong progress towards our target of a US$1.5 billion reduction in net debt by the end of 2019. We will continue to prioritise free cash flow for debt reduction.

“GLNG produced higher LNG volumes in the first quarter, as strong upstream field performance delivered higher volumes of equity gas to the LNG plant,” Mr Gallagher said.

Total first quarter production of 14.8 mmboe was down slightly on the previous quarter, primarily due to sale of the Victorian, Mereenie and Stag assets, partially offset by higher GLNG equity production. Total sales volumes of 18.6 mmboe were lower due to asset sales, lower third party volumes and the timing of liftings.

All guidance for 2017 is maintained.

• 1 Free cash flow breakeven is the average annual oil price in 2017 at which cash flows from operating activities equals cash flows from investing activities. Forecast methodology uses corporate assumptions. Excludes one-off restructuring and redundancy costs and asset divestitures.

Comparative performance

Santos share Units	Q1 2017 Q4 2016 **Change **	YTD 2017 YTD 2016 **Change **
Production mmboe Sales volume mmboe Average realised oil price US$/bbl Sales revenue US$million Capital expenditure1 US$million	14.8 15.0 -2% 18.6 21.9 -15% 57.6 52.8 +9% 684 753 -9% 134 187 -28%	14.8 15.6 -6% 18.6 21.3 -13% 57.6 37.1 +56% 684 600 +14% 134 150 -11%

¹ Capital expenditure including restoration expenditure but excluding capitalised interest.

Santos Limited ABN 80 007 550 923 GPO Box 2455, Adelaide SA 5001 T +61 8 8116 5000 F +61 8 8116 5131 www.santos.com

Media enquiries Rob Malinauskas +61 8 8116 5918/ +61 (0) 438 862 132 robert.malinauskas@santos.com

Investor enquiries Andrew Nairn +61 8 8116 5314 / +61 (0) 437 166 497 andrew.nairn@santos.com

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Sales volumes (Santos share)

Product	Unit	Q1 2017	Q4 2016	Q1 2016	YTD 2017	YTD 2016
LNG Sales gas and ethane Crude oil Condensate LPG	000 t PJ 000 bbls 000 bbls 000 t	729.0	741.9 61.5 2,931.2 1,108.8 37.7	664.5 60.8 3,513.7 875.4 23.7	729.0	664.5 60.8 3,513.7 875.4 23.7
		47.8			47.8
		2,086.6			2,086.6
		1,046.5			1,046.5
		42.8			42.8
Sales Own product Third party	mmboe mmboe		16.3 5.6	16.1 5.2		16.1 5.2
		14.1			14.1
		4.5			4.5
Total sales volume	mmboe	18.6	21.9	21.3	18.6	21.3

Sales revenues (Santos share)

Product Unit	Q1 2017 Q4 2016 Q1 2016	YTD 2017 YTD 2016
LNG US$m Sales gas and ethane US$m Crude oil US$m Condensate US$m LPG US$m	272 270 216 212 255 216 120 155 130 58 56 29 22 17 9	272 216 212 216 120 130 58 29 22 9
Sales Own product US$m Third party US$m	504 555 451 180 198 149	504 451 180 149
Total sales revenue US$m	684 753 600	684 600
Third party product purchases US$m	119 166 128	119 128

First quarter sales volumes and revenues were impacted by the timing of the delivery of three PNG LNG DES cargoes shipped late March but still on water at the end of the month, asset sales, the expiration of a domestic sales gas contract in the Cooper Basin and lower crude oil sales reflecting lower third party volumes and the timing of liftings.

Production (Santos share)

Product Unit	Q1 2017 Q4 2016 Q1 2016	YTD 2017 YTD 2016
Sales gas to LNG plant PJ Sales gas and ethane PJ Crude oil 000 bbls Condensate 000 bbls LPG 000 t	31.2 28.2 27.8 38.7 41.9 44.4 1,627.0 1,948.9 2,068.9 855.7 833.9 885.7 35.9 32.3 35.8	31.2 27.8 38.7 44.4 1,627.0 2,068.9 855.7 885.7 35.9 35.8
Total production mmboe	14.8 15.0 15.6	14.8 15.6

First quarter production was 2% lower than the previous quarter, primarily due to the sale of the company’s Victorian and Mereenie assets, and the Stag oil field in Western Australia, partially offset by stronger GLNG equity gas production.

Santos Ltd l First Quarter Activities Report l 20 April 2017

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Average realised prices

	Unit	Q1 2017	Q4 2016	Q1 2016	YTD 2017	YTD 2016
LNG price Gas price Oil price Condensate price LPG price	US$/mmBtu US$/GJ US$/bbl US$/bbl US$/t	7.09	6.94 4.17 52.79 50.00 433.69	6.19 3.55 37.06 33.40 374.38	7.09	6.19 3.55 37.06 33.40 374.38
		4.45			4.45
		57.63			57.63
		55.68			55.68
		503.75			503.75

Oil price hedging

2.7 million barrels of oil hedging expired in the first quarter of 2017 under the zero-cost three way collar hedges. As the realised Brent price was within the US$50-$62.85 per barrel Brent participation range, there was no cash settlement. The following oil price hedging positions were in place as at 31 March 2017.

Open oilpricepositions	2017
Zero-cost three-way collars (barrels)1	8,250,000
Brent short call price ($/bbl)	US$62.85
Brent long put price ($/bbl)	US$50.00
Brent short put price ($/bbl)	US$40.00

¹ When Brent price is above the weighted average US$62.85 short call price, Santos realises short call price. When Brent price is between US$50.00 long put price and the weighted average US$62.85 short call price, Santos realises Brent price. When Brent price is between the US$50.00 long put price and the US$40.00 short put price, Santos realises long put price. When Brent price is below US$40.00 short put price, Santos realises Brent price plus the US$10.00 difference between the US$50.00 long put price and the US$40.00 short put price.

2017 Guidance

All guidance for 2017 is maintained, as shown in the table below.

Item	Guidance
Sales volumes Production Upstream production costs Depreciation, depletion and amortisation (DD&A) Capital expenditure (including exploration, evaluation and restoration, excluding capitalised interest)	73-80 mmboe 55-60 mmboe US$8-8.50/boe produced US$700-750 million US$700-750million

Further detail of 2017 full-year capital expenditure, including exploration and evaluation expenditure, is reported in the table on page 9 of this report.

Strengthening the balance sheet

Net debt reduced to US$3.1 billion as at 31 March 2017, down from US$3.5 billion at the start of the year, through a combination of free cash flow, previously announced asset sales and proceeds from the Share Purchase Plan.

In April the company announced the early repayment of US$250 million of its US$1.2 billion Export Credit Agency supported Uncovered Syndicated Facility, scheduled to mature in 2019. The repayment was made on 18 April and will generate annual gross interest savings of approximately US$5.5 million. Following the repayment, the outstanding balance of the facility was reduced to US$950 million.

Santos also extended the term of US$860 million of bilateral bank loan facilities. The facilities were due to mature in 2018 and have been extended to 2022 on favourable terms. The facilities are currently undrawn.

Santos Ltd l First Quarter Activities Report l 20 April 2017

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Core assets

Cooper Basin

Santos share Units	Q1 2017 Q4 2016 Q1 2016	2017 YTD 2016 YTD
Sales volume Sales gas and ethane Own product PJ Third party PJ Total PJ Condensate Own product PJ Third party PJ Total PJ LPG Own product 000 t Third party 000 t Total 000 t Crude oil Own product 000 bbls Third party 000 bbls Total 000 bbls	18.2 21.1 18.1 0.6 0.3 3.4 18.8 21.4 21.5 371.6 391.1 160.5 38.5 37.0 21.8 410.1 428.1 182.3 32.5 29.0 14.2 2.0 3.9 1.6 34.5 32.9 15.8 412.8 590.5 652.6 730.2 1,130.3 1,372.1 1,143.0 1,720.8 2,024.7	18.2 18.1 0.6 3.4 18.8 21.5 371.6 160.5 38.5 21.8 410.1 182.3 32.5 14.2 2.0 1.6 34.5 15.8 412.8 652.6 730.2 1,372.1 1,143.0 2,024.7
Total sales volume mmboe	5.0 6.1 6.0	5.0 6.0
Total sales revenue US$million	175 208 164	175 164
Production Sales gas and ethane PJ Condensate 000 bbls LPG 000 t Crude oil 000 bbls	14.7 14.7 15.5 215.7 238.6 243.5 27.3 26.8 29.0 649.7 724.5 681.9	14.7 15.5 215.7 243.5 27.3 29.0 649.7 681.9
Total production mmboe	3.6 3.7 3.8	3.6 3.8
Capital expenditure US$million	38 47 51	38 51

Sales gas and ethane sales volumes were lower than the prior quarter primarily due to the expiration of a domestic gas sales contract. Lower crude oil sales volumes primarily reflect timing of liftings and lower third party volumes.

Sales gas and ethane production was in line with the previous quarter as production capacity additions offset natural field decline.

Efficiency and productivity gains continue to be made delivering improvements to both well and plant availability and reliability.

Four appraisal and seven development gas wells were drilled during the quarter, all of which were cased and suspended for future production.

Santos Ltd l First Quarter Activities Report l 20 April 2017

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GLNG

Santos share	Units	Q1 2017	Q4 2016	Q1 2016	2017 YTD	2016 YTD
Sales volume GLNG Project LNG - own product LNG - third party	000 t 000 t		153.7 246.0	106.8 182.6		106.8 182.6
		172.9			172.9
		228.0			228.0
LNG – total	000 t	400.9	399.7	289.4	400.9	289.4
Domestic contracts Other1	PJ PJ	3.3	4.3 4.2	6.3 4.3	3.3	6.3 4.3
		3.8			3.8
Total sales volume2	mmboe	5.0	5.3	4.6	5.0	4.6
Total sales revenue2	US$million	167	162	116	167	116
Production GLNG Project Sales gas to LNG Domestic contracts Other1	PJ PJ PJ		8.5 1.4 5.3	6.6 1.4 4.7		6.6 1.4 4.7
		9.8			9.8
		0.9			0.9
		5.1			5.1
Total production2	mmboe	2.7	2.6	2.2	2.7	2.2
Capital expenditure	US$million	28	72	56	28	56

1 Combabula, Ramyard, Spring Gully, Denison and Tardrum

2 Total sales volume, sales revenue and production include minor condensate production from Denison

GLNG operational data(gross)	Units	Q1 2017	Q4 2016	Q1 2016	2017 YTD	2016 YTD
Production LNG1 Sales gas to LNG plant Own product Third party	000 t PJ PJ		1,261 29.6 47.4	958 22.0 37.3		958 22.0 37.3
		1,367			1,367
		34.2			34.2
		49.0			49.0
Total sales gas to LNG plant	PJ	83.2	77.0	59.3	83.2	59.3
LNG cargoes shipped		21	22	16	21	16

1 Includes indigenous production from the GLNG Project, Santos’ portfolio and third-party quantities

LNG sales volumes were in-line with the prior quarter. Higher equity gas supply increased LNG own product sales by 12%. Total GLNG sales revenue increased to US$167 million.

Fairview production continues to build and well availability has been high. Gross daily production from the Fairview field at the end of the quarter was 474 TJ/d.

The Roma field continues to de-water and gas production is ahead of expectations. Gross daily production from the Roma field at the end of the quarter was 36 TJ/d, up 22% compared to the average for December 2016.

Scotia production is also ahead of expectations largely due to good well availability and continued dewatering in the area. The Scotia CF1 project is progressing ahead of plan. Gross daily production from the Scotia field at the end of the quarter was 28 TJ/d.

Arcadia is producing ahead of expectations largely due to good well availability and continued dewatering in the area. Gross daily production from the Arcadia field at the end of the quarter was 7 TJ/d.

The planned statutory inspection shutdown of LNG train 2 is planned to commence in June and a scheduled maintenance shutdown of LNG train 1 is planned to commence in July.

Santos Ltd l First Quarter Activities Report l 20 April 2017

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PNG

Santos share	Units	Q1 2017	Q4 2016	Q1 2016	2017 YTD	2016 YTD
Sales volume PNG LNG LNG1 Condensate Crude oil	000 t 000 bbls 000 bbls		279.0 453.5 6.5	282.1 422.7 9.1		282.1 422.7 9.1
		232.8			232.8
		374.7			374.7
		5.0			5.0
Total sales volume	mmboe	2.6	3.1	3.1	2.6	3.1
Total sales revenue	US$million	121	127	116	121	116
Production PNG LNG Sales gas to LNG1 Condensate Crude oil	PJ 000 bbls 000 bbls		16.2 387.6 6.1	16.0 382.4 7.6		16.0 382.4 7.6
		16.1			16.1
		377.1			377.1
		5.0			5.0
Total production	mmboe	3.1	3.2	3.1	3.1	3.1
Capital expenditure	US$million	4	4	5	4	5

1 Includes SE Gobe

PNG LNG operational data (gross)	Units	Q1 2017	Q4 2016	Q1 2016	2017 YTD	2016 YTD
Production LNG Sales gas to LNG plant Condensate1 Sales gas (SE Gobe)2	mt PJ 000 bbls PJ		2.1 117 2,863 5	2.0 115 2,826 3	2.1 117 2,786 4	2.0 115 2,826 3
		2.1
		117
		2,786
		4
LNG cargoes shipped		27	28	26	27	26

1 Measured at the Kutubu entry point 2 Purchased by PNG LNG

During the quarter, PNG LNG operated at an annualised rate of approximately 8.3 mtpa.

LNG sales volumes were lower than the prior quarter primarily due to timing of delivery of cargoes. Three DES cargoes shipped late March and were still on the water at end of month.

Sales gas and condensate production was consistent with the prior quarter.

LNG plant scheduled compressor maintenance is planned for May, which is expected to result in reduced LNG production rates for approximately three weeks.

Santos Ltd l First Quarter Activities Report l 20 April 2017

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Northern Australia

Santos share	Units	Q1 2017	Q4 2016	Q1 2016	2017 YTD	2016 YTD
Sales volume Darwin LNG LNG Bayu Undan Condensate LPG	000 t 000 bbls 000 t		63.2 45.5 4.9	93.0 167.2 7.8		93.0 167.2 7.8
		95.3			95.3
		187.5			187.5
		8.3			8.3
Total sales volume	mmboe	1.2	0.7	1.1	1.2	1.1
Total sales revenue	US$million	42	38	36	42	36
Production Darwin LNG Sales gas to LNG Bayu Undan Condensate LPG	PJ 000 bbls 000 t		3.5 93.7 5.5	5.2 130.2 6.8		5.2 130.2 6.8
		5.3			5.3
		155.7			155.7
		8.6			8.6
Total production	mmboe	1.1	0.7	1.1	1.1	1.1
Capital expenditure	US$million	17	9	0	17	0

Darwin LNG / Bayu Undan operational data(gross)	Units	Q1 2017	Q4 2016	Q1 2016	2017 YTD	2016 YTD
Production LNG Sales gas to LNG plant Condensate LPG	000 t PJ 000 bbls 000 t		907 55 1,815 91	928 56 1,483 72	897 54 1,673 88	928 56 1,483 72
		897
		54
		1,673
		88
LNG cargoes shipped		14	15	14	14	14

Santos’ net entitlement to production was higher as a result of higher cost recovery during the quarter.

The Barossa field continues to be progressed for Darwin LNG backfill. During the first quarter, a two-well appraisal campaign began on the Barossa field. The first well, Barossa-5, was successfully completed and analysis is ongoing. The well is currently being plugged and abandoned as planned and once complete, the rig will move across to the second well, Barossa-6.

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Western Australia Gas

Santos share	Units	Q1 2017	Q4 2016	Q1 2016	2017 YTD	2016 YTD
Sales volume Sales gas Condensate	PJ 000 bbls		14.0 181.6	12.6 99.9		12.6 99.9
		11.3			11.3
		73.1			73.1
Total sales volume	mmboe	2.0	2.6	2.3	2.0	2.3
Total sales revenue	US$million	51	59	44	51	44
Production Sales gas Condensate	PJ 000 bbls		11.2 106.7	12.7 120.9		12.7 120.9
		11.4			11.4
		106.3			106.3
Total production	mmboe	2.1	2.0	2.3	2.1	2.3
Capital expenditure	US$million	2	3	8	2	8

Sales volumes were lower than the previous quarter due to lower nominations on Varanus Island and cyclone activity impacting Reindeer customer nominations.

Other assets

Asia, New South Wales and Western Australia oil

Santos share	Units	Q1 2017	Q4 2016	Q1 2016	2017 YTD	2016 YTD
Sales volume Sales gas1 Condensate1 Crude oil2	PJ 000 bbls 000 bbls		9.2 1.3 1,217.7	9.7 2.7 1,501.5		9.7 2.7 1,501.5
		6.7			6.7
		0.9			0.9
		955.0			955.0
Total sales volume	mmboe	2.1	2.8	3.2	2.1	3.2
Total sales revenue	US$million	88	106	99	88	99
Production Sales gas1 Condensate1 Crude oil2	PJ 000 bbls 000 bbls		9.3 7.0 1,218.3	10.1 8.6 1,379.4		10.1 8.6 1,379.4
		6.6			6.6
		0.8			0.8
		972.3			972.3
Total production	mmboe	2.1	2.8	3.1	2.1	3.1
Capital expenditure	US$million	22	25	17	22	17

1 Indonesia, Victoria and Mereenie. Santos sold its Victorian assets and Mereenie effective 1 January 2017.

2 Mutineer Exeter / Fletcher Finucane (Western Australia), Barrow Island (Western Australia) and Indonesia. Stag sold effective 11 November 2016.

Sales gas and condensate production was lower than the previous quarter due to the disposal of Victoria and Mereenie.

Santos’ share of oil production was lower than the previous quarter due to a decrease in production from Mutineer Exeter / Fletcher Finucane due to cyclone interruptions as well as the disposal of the Stag and Mereenie assets.

In New South Wales, Santos submitted the State Significant Development Application and associated Environmental Impact Statement (EIS) for its Narrabri Gas Project to the NSW Department of Planning and Environment on 1 February 2017.

The sale of the company’s Victorian assets to Cooper Energy was announced in October 2016 and completed (excluding Minerva) in early January 2017. The sale of the Minerva asset completed in early April 2017.

In December 2016, Santos entered into an agreement to sell its remaining 50% interest in the Mereenie oil and gas assets in the Northern Territory to a subsidiary of Macquarie Group Limited. The sale of the Mereenie asset completed in March 2017 with an effective date of 1 January 2017.

Santos Ltd l First Quarter Activities Report l 20 April 2017

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Corporate, exploration and eliminations

Santos share	Units	Q1 2017	Q4 2016	Q1 2016	2017 YTD	2016 YTD
Total sales volume	mmboe	0.7	1.3	1.0	0.7	1.0
Total sales revenue	US$million	40	53	25	40	25
Capital expenditure	US$million	23	27	14	23	14

Sales volumes and revenues in the corporate segment primarily represent gas trading activities. Capital expenditure primarily represents exploration and evaluation activities not recorded against assets.

Capital expenditure

Total exploration, evaluation and development expenditure is summarised in the table below.

US$million	Q1 2017	Q4 2016	Q1 2016	YTD 2017	YTD 2016
Capital expenditure Exploration Evaluation Development and other capex (including restoration)		32 23 132	16 26 108		16 26 108
	30			30
	17			17
	87			87
Capital expenditure excl capitalised interest Capitalised interest	134	187 2	150 7	134	150 7
	2			2
Total capital expenditure	136	189	157	136	157
Exploration and evaluation expensed Exploration Evaluation		54 11	13 10		13 10
	30			30
	4			4
Total current year expenditure Write-off of amounts capitalised in prior years	34	65 11	23 1	34	23 1
	4			4
Total expensed	38	76	24	38	24

Exploration activity

The table below details wells drilled during the first quarter and their status.

Well name	Basin/area	Target	Santos %	Well status
Magnama-2 Muruk 1ST1# Muruk 1ST2# Muruk 1ST3#	Bangladesh / Magnama / Block 16 PNG Southern Highlands PNG Southern Highlands PNG Southern Highlands	Gas Gas Gas Gas	51% 20% 20% 20%	P&A; sub-commercial gas discovery Plugged back and side-tracked; gas well Plugged back and side-tracked; gas well Drilling

Not operated by Santos.

Following the gas and condensate discovery in Muruk-1, two side-tracks have been drilled and a third side-track (Muruk 1ST3) is currently drilling ahead. Muruk 1ST1 and Muruk 1ST2 were drilled to the north-east of Muruk 1, where the Toro Sandstone intercepted by ST2 may be water bearing. Muruk 1ST3 is being drilled to the south-west of Muruk 1 and will help constrain the structural configuration of the southern flank of the Muruk structure and further define field fluid limits.

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Drilling summary

Appraisal/evaluation wells

Well name	Basin/area	Target	Santos %	Well status
Barossa-5# Barossa-5A# Caraka-2 Dunadoo East-1* Ranger-1 Raffle-2 Strzelecki-32	Bonaparte Basin - NT Bonaparte Basin - NT Cooper - SA Cooper - QLD Cooper - QLD Cooper - QLD Cooper - SA	Gas Gas Gas Gas Gas Gas Gas	25% 25% 66.6% 66.06% 60.06% 60.06 79.79% (cost, LTAP)**	P&A; re-spud P&A; gas well C&S; successful gas P&A (correction from Q4 2016 report) C&S; successful gas C&S; successful gas C&S; successful gas

Not operated by Santos * Spud in Q4 2016, completed in Q1 2017

** LTAP = Less than all parties

Development wells

Well name	Basin/area	Target	Santos %	Well status
Avalon-5 Avalon-6 Avalon-7 Avalon-8 Avalon-16 Avalon-17 Avalon-18 Daldowie-2 Daldowie-3 Daldowie-8* Daldowie-9 Daldowie-10 Daldowie-11 Daldowie-12 Glen Evis-1 Kanowana-12 Kanowana-13 Kanowana-14 Moomba-213 Moomba-214 RM01-16-1 RM02-44-1 RM02-45-1 RM02-48-1 RM02-49-1 RM02-50-1 RM02-51-1	Scotia – QLD Scotia – QLD Scotia – QLD Scotia – QLD Scotia – QLD Scotia – QLD Scotia – QLD Scotia – QLD Scotia – QLD Scotia – QLD Scotia – QLD Scotia – QLD Scotia – QLD Scotia – QLD Scotia – QLD Cooper - SA Cooper - SA Cooper - SA Cooper - SA Cooper - SA Roma - QLD Roma - QLD Roma - QLD Roma - QLD Roma - QLD Roma - QLD Roma - QLD	CSG CSG CSG CSG CSG CSG CSG CSG CSG CSG CSG CSG CSG CSG CSG Gas Gas Gas Gas Gas CSG CSG CSG CSG CSG CSG CSG	30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 30% 66.6% 66.6% 66.6% 100% (cost, LTAP) 100% (cost, LTAP) 30% 30% 30% 30% 30% 30% 30%	C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S, successful gas C&S, successful gas C&S, successful gas C&S, successful gas C&S, successful gas C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG C&S; successful CSG Drilling

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Well name	Basin/area	Target	Santos %	Well status
Scotia-49* Scotia-69 Toolachee-53 Toolachee-54	Scotia – QLD Scotia – QLD Cooper - SA Cooper - SA	CSG CSG Gas Gas	30% 30% 60.6% 60.6%	C&S; successful CSG C&S; successful CSG C&S, successful gas C&S, successful gas

• Spud in Q4 2016, completed in Q1 2017

** LTAP = Less than all parties

Seismic activity

The table below details seismic activity during the first quarter and status.

Permit	Basin/area	Survey	**Type **	km/km2	Status
EP112 and EP125 WA290P, WA49R, WA214P, WA13L, WA33R, and WA510P	Amadeus Carnarvon	2016 Southern Amadeus 2D Bianchi-Hockey 3D	2D 3D	762 km2 1,720 km2	72% complete (933 km2 / 1,300 km2) Complete

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Abbreviations and conversion factors

Abbreviations

Conversion factors

C&C cased and completed C&S cased and suspended CSG coal seam gas FPSO floating production, storage and offloading GJ gigajoules kbbls thousand barrels kt thousand tonnes LNG liquefied natural gas LPG liquefied petroleum gas m million mmbbl million barrels mmboe million barrels of oil equivalent mmBtu million British thermal units mmscf million standard cubic feet mt million tonnes mtpa million tonnes per annum NFE near-field exploration P&A plugged and abandoned pa per annum PJ petajoules PSC production sharing contract t tonnes TJ terajoules

Sales gas and ethane, 1 PJ 171.937 boe x 10³ Crude oil, 1 barrel 1 boe Condensate, 1 barrel 0.935 boe LPG, 1 tonne 8.458 boe LNG, 1 PJ 18,040 tonnes LNG, 1 tonne 52.54 mmBtu

Santos Ltd l First Quarter Activities Report l 20 April 2017

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