Second Quarter Activities Report For period ending 30 June 2017 20 July 2017 Key highlights Costs reduced Forecast free cash flow breakeven for 2017 reduced to US$33/bbl1, down from US$36.50/bbl in 2016. 2017 production cost guidance reduced to US$8-8.25/boe, down from US$8.45/boe in 2016. Balance sheet strengthened Net debt reduced to US$2.9 billion at the end of the quarter, down from US$3.5 billion at the end of 2016. Production and sales guidance upgraded 2017 production guidance upgraded to 57-60 mmboe and sales guidance upgraded to 75-80 mmboe. Record PNG LNG performance PNG LNG operated at an annualised rate of 8.6 mtpa in June, the highest monthly rate since start-up. Growth in PNG and Northern Australia PNG: The Muruk drilling programme confirmed the discovery of a potentially significant new gas field. Northern Australia: Positive results from the two-well Barossa appraisal drilling campaign strengthened the field’s position as lead candidate to supply backfill gas to Darwin LNG. Santos Managing Director and Chief Executive Officer Kevin Gallagher said the company’s second quarter results delivered further progress on reducing costs, lowering net debt and improving the free cash flow position. “Compared to the end of 2016, our net debt position is US$600 million lower to US$2.9 billion and our forecast free cash flow breakeven for 2017 now sits at US$33 per barrel1, well below the US$47 per barrel at the beginning of 2016. “These are strong outcomes that highlight Santos’ ongoing transformation into a low-cost, reliable and high performance business with a robust asset portfolio that can generate significant free cash flow in a lower oil price environment.” Second quarter production of 14.7 mmboe was in line with the previous quarter. Sales volumes were up 16% to 21.5 mmboe and sales revenues up 12% to US$769 million primarily due to higher LNG prices and the timing of liftings. As a result of this solid operational performance, Santos has increased its production and sales volume guidance for 2017 to 57-60 mmboe and 75-80 mmboe respectively. Mr Gallagher said more efficient, lower cost operations had enabled Santos to increase drilling activity in both the Cooper Basin and across its GLNG acreage. This has been achieved as a result of the significant improvements in drill, complete and connect upstream operations unit cost performance over the last 18 months. These additional wells will help boost production over the next few years so Santos can deliver increased gas supply for the domestic market. Santos also executed a number of term gas sales into the east coast domestic market during the second quarter. “As a long-standing supplier of gas to Australian customers in both the east and west coast, we understand the importance of well-functioning domestic market,” Mr Gallagher said. “It is also pleasing to see our exploration and appraisal activity growing as part of our disciplined operating model, with successful outcomes in the Cooper Basin, as well as Muruk in PNG and Barossa offshore Northern Australia.” 1 Free cash flow breakeven is the average annual oil price in 2017 at which cash flows from operating activities (including hedging) equals cash flows from investing activities. Forecast methodology uses corporate assumptions. Excludes one-off restructuring and redundancy costs and asset divestitures. Comparative performance Santos share Units Q2 2017 Q1 2017 Change YTD 2017 YTD 2016 Change Production mmboe 14.7 14.8 -1% 29.5 31.1 -5% Sales volume mmboe 21.5 18.6 +16% 40.1 40.9 -2% Average realised oil price US$/bbl 53.0 57.6 -8% 54.8 42.8 +28% Sales revenue US$million 769 684 +12% 1,453 1,191 +22% Capital expenditure1 US$million 187 134 +40% 321 283 +13% Capital expenditure including restoration expenditure but excluding capitalised interest. Media enquiries Investor enquiries Santos Limited ABN 80 007 550 923 Rob Malinauskas Andrew Nairn GPO Box 2455, Adelaide SA 5001 +61 8 8116 5918/ +61 (0) 438 862 132 +61 8 8116 5314 / +61 (0) 437 166 497 T +61 8 8116 5000 F +61 8 8116 5131 robert.malinauskas@santos.com andrew.nairn@santos.com www.santos.com Sales volumes (Santos share) Product Unit Q2 2017 Q1 2017 Q2 2016 YTD 2017 YTD 2016 LNG 000 t 754.8 729.0 637.6 1,483.8 1,302.1 Domestic sales gas and ethane PJ 60.7 47.8 52.9 108.5 113.7 Crude oil 000 bbls 2,684.7 2,086.6 3,137.0 4,771.3 6,650.7 Condensate 000 bbls 991.8 1,046.5 999.8 2,038.3 1,875.2 LPG 000 t 26.7 42.8 41.5 69.5 65.2 Sales Own product mmboe 15.0 14.1 15.2 29.1 31.3 Third party mmboe 6.5 4.5 4.4 11.0 9.6 Total sales volume mmboe 21.5 18.6 19.6 40.1 40.9 Sales revenues (Santos share) Product Unit Q2 2017 Q1 2017 Q2 2016 YTD 2017 YTD 2016 LNG US$m 290 272 174 562 390 Domestic sales gas and ethane US$m 279 212 200 491 416 Crude oil US$m 142 120 154 262 285 Condensate US$m 48 58 47 106 76 LPG US$m 10 22 15 32 24 Sales Own product US$m 557 504 462 1,061 913 Third party US$m 212 180 129 392 278 Total sales revenue US$m 769 684 591 1,453 1,191 Third party product purchases US$m 159 119 123 278 250 Second quarter sales volumes and revenues were higher than previous quarter primarily due to the timing of three PNG LNG DES cargoes shipped late March but delivered in April, combined with higher domestic sales volumes and higher LNG prices. Average realised prices Unit Q2 2017 Q1 2017 Q2 2016 YTD 2017 YTD 2016 LNG price US$/mmBtu 7.32 7.09 5.19 7.21 5.70 Domestic sales gas price US$/GJ 4.60 4.45 3.77 4.53 3.62 Oil price US$/bbl 52.96 57.63 49.21 54.79 42.79 Condensate price US$/bbl 48.49 55.68 46.80 52.18 40.55 LPG price US$/t 372.81 503.75 374.79 467.19 374.64 Santos Ltd l Second Quarter Activities Report l 20 July 2017 Page 2 of 12 Production (Santos share) Product Unit Q2 2017 Q1 2017 Q2 2016 YTD 2017 YTD 2016 Sales gas to LNG plant PJ 32.4 31.2 25.7 63.6 53.5 Domestic sales gas and ethane PJ 37.8 38.7 45.9 76.5 90.3 Crude oil 000 bbls 1,672.8 1,627.0 2,010.7 3,299.8 4,079.6 Condensate 000 bbls 810.7 855.7 884.5 1,666.4 1,770.2 LPG 000 t 34.7 35.9 37.3 70.6 73.1 Total production mmboe 14.7 14.8 15.5 29.5 31.1 Second quarter production was in line with the previous quarter as higher GLNG equity gas and WA domestic gas production was offset by slightly lower Cooper Basin gas production. First half production was 5% lower than the previous half primarily due to the sale of the Victorian, Mereenie and Stag assets, partially offset by the ramp-up of GLNG and higher WA domestic gas production. Oil price hedging 2.7 million barrels of oil hedging expired in the second quarter under the zero-cost three way collar hedges, resulting in a positive cash settlement of US$2.2 million being received during the quarter. Oil hedging was also commenced for 2018. The following oil price hedging positions were in place as at 18 July 2017. Open oil price positions 2017 2018 Zero-cost three-way collars (barrels) 1 5,520,000 4,562,500 Brent short call price ($/bbl) US$62.85 US$59.33 Brent long put price ($/bbl) US$50.00 US$46.93 Brent short put price ($/bbl) US$40.00 US$40.00 When Brent price is above the weighted average short call price, Santos realises short call price. When Brent price is between the long put price and the weighted average short call price, Santos realises Brent price. When Brent price is between the long put price and the short put price, Santos realises the long put price. When Brent price is below the short put price, Santos realises Brent price plus the difference between the long put price and the short put price. 2017 Guidance Production guidance is upgraded to 57-60 mmboe and sales volumes guidance to 75-80 mmboe. Upstream production cost guidance is lowered to US$8-8.25/boe produced. All guidance is shown in the table below. Item Original guidance Updated guidance Sales volumes 73-80 mmboe 75-80 mmboe Production 55-60 mmboe 57-60 mmboe Upstream production costs US$8-8.50/boe produced US$8-8.25/boe produced Depreciation, depletion and amortisation (DD&A) US$700-750 million No change Capital expenditure (including exploration, evaluation and restoration, excl cap. int.) US$700-750 million No change Further detail of 2017 half-year capital expenditure, including exploration and evaluation expenditure, is reported in the table on page 9 of this report. 2017 First-half results Santos will release its results for the first-half ended 30 June 2017 on Thursday 24 August 2017. The first-half report (incorporating Appendix 4D) and associated investor presentation will be available on Santos’ website at www.santos.com. A webcast briefing including investor/analyst questions will also be available on Santos’ website from 11:00am AEST on 24 August 2017. Santos Ltd l Second Quarter Activities Report l 20 July 2017 Page 3 of 12 Core assets Cooper Basin Santos share Units Q2 2017 Q1 2017 Q2 2016 2017 YTD 2016 YTD Sales volume Sales gas and ethane Own product PJ 16.9 18.2 18.4 35.1 36.5 Third party PJ 0.7 0.6 (0.4) 1.3 3.0 Total PJ 17.6 18.8 18.0 36.4 39.5 Condensate Own product 000 bbls 336.1 371.6 342.3 707.7 502.8 Third party 000 bbls 40.1 38.5 51.3 78.6 73.1 Total 000 bbls 376.2 410.1 393.6 786.3 575.9 LPG Own product 000 t 19.1 32.5 32.5 51.6 46.7 Third party 000 t 2.0 2.0 1.0 4.0 2.6 Total 000 t 21.1 34.5 33.5 55.6 49.3 Crude oil Own product 000 bbls 667.3 412.8 558.7 1,080.1 1,211.3 Third party 000 bbls 1,070.6 730.2 1,073.7 1,800.8 2,445.8 Total 000 bbls 1,737.9 1,143.0 1,632.4 2,880.9 3,657.1 Total sales volume mmboe 5.4 5.0 5.4 10.4 11.4 Total sales revenue US$million 204 175 181 379 345 Production Sales gas and ethane PJ 13.9 14.7 16.0 28.6 31.5 Condensate 000 bbls 198.2 215.7 241.4 413.9 484.9 LPG 000 t 26.1 27.3 28.9 53.4 57.9 Crude oil 000 bbls 682.9 649.7 664.4 1,332.6 1,346.3 Total production mmboe 3.5 3.6 3.9 7.1 7.7 Capital expenditure US$million 46 38 39 84 90 Sales gas and ethane sales volumes were lower than the previous quarter primarily due to lower spot sales, partially offset by higher gas sales to GLNG. Condensate and LPG sales volumes were lower than the previous quarter due to timing of liftings. Crude oil sales volumes were higher than the previous quarter due to timing of liftings and higher third party volumes. Sales gas and ethane production was lower as gas capacity additions were offset by natural field decline. Condensate production was lower due to natural field decline and lower condensate yields. Higher crude oil production reflected new oil wells coming online offsetting natural field decline. Fourteen development and appraisal gas wells were drilled during the quarter, taking the total to 25 gas wells for the first half. Drilling cost and schedule efficiencies continue to be realised and Santos is targeting to drill 52 wells with two rigs in 2017, compared to 31 wells with the same two rigs in 2015. Of the nine development gas wells drilled in the second quarter, eight were cased and suspended for future production and one was drilling at quarter end. Of the two appraisal and three near-field exploration gas wells drilled in the quarter, three were cased and suspended for future production. Santos Ltd l Second Quarter Activities Report l 20 July 2017 Page 4 of 12 GLNG Santos share Units Q2 2017 Q1 2017 Q2 2016 2017 YTD 2016 YTD Sales volume GLNG Project LNG - own product 000 t 145.5 172.9 132.3 318.4 239.1 LNG - third party 000 t 222.3 228.0 170.4 450.4 353.0 LNG – total 000 t 367.8 400.9 302.7 768.8 592.1 Domestic contracts PJ 7.9 3.3 4.6 9.8 10.9 Other 1 PJ 4.8 3.8 5.8 9.3 10.1 Total sales volume2 mmboe 5.6 5.0 4.5 10.6 9.1 Total sales revenue 2 US$million 187 167 102 354 218 Production GLNG Project Sales gas to LNG PJ 10.4 9.8 5.9 20.2 12.5 Domestic contracts PJ 0.8 0.9 1.3 1.7 2.7 Other 1 PJ 5.7 5.1 5.1 10.8 9.8 Total production2 mmboe 2.9 2.7 2.1 5.6 4.3 Capital expenditure US$million 47 28 41 75 97 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 Q2 2017 Q1 2017 Q2 2016 2017 YTD 2016 YTD Production LNG1 000 t 1,073 1,367 991 2,441 1,949 Sales gas to LNG plant Own product PJ 30 34 26 64 44 Third party PJ 36 49 34 84 76 Total sales gas to LNG plant PJ 66 83 61 149 120 LNG cargoes shipped 21 21 16 42 32 1 Includes LNG produced from GLNG equity gas, Santos portfolio gas and third-party quantities Upstream equity sales gas production was 6% higher than the previous quarter and 36% higher than the corresponding quarter primarily due to production enhancements in Fairview and stronger field performance in Roma. Forty-one development wells were drilled in the GLNG fields in the second quarter, with a further 18 top holes batch-drilled and suspended for further deepening as at the end of the quarter. Santos is now targeting to drill approximately 170 GLNG wells in 2017, up from original guidance of 130-150 wells. Notwithstanding the higher upstream gas production, sales gas delivered to the LNG plant and LNG production were both lower than the previous quarter due to the planned four-week statutory inspection shutdown of LNG train 2 in June combined with the processing of GLNG gas at APLNG during their two-train completion test. Gross daily production of 490 TJ/day from the Fairview field at the end of the quarter was ahead of forecast. All 12 wells of the Fairview infield project have been top-set and the project is over 40% complete. The Roma field continues to de-water and gross daily production of 42 TJ/day at the end of the quarter was in line with forecast. The Roma 2B project is over 90% complete, with 151 of 159 wells online. The Roma 3A project is 70% complete, with all 29 wells now drilled and completions underway. Gross daily production from the Scotia field at the end of the quarter was 28 TJ/d. The Scotia CF1 project is 38% complete, with 33 of the 84 wells spudded. Gross daily production from the Arcadia field at the end of the quarter was 8 TJ/d. A planned three-week maintenance shutdown of LNG train 1 commenced in July. Santos Ltd l Second Quarter Activities Report l 20 July 2017 Page 5 of 12 PNG Santos share Units Q2 2017 Q1 2017 Q2 2016 2017 YTD 2016 YTD Sales volume PNG LNG LNG1 000 t 300.1 232.8 236.7 532.9 518.8 Condensate 000 bbls 352.3 374.7 389.6 727.0 812.3 Crude oil 000 bbls 5.5 5.0 5.3 10.5 14.4 Total sales volume mmboe 3.2 2.6 2.6 5.8 5.7 Total sales revenue US$million 127 121 91 248 207 Production PNG LNG Sales gas to LNG1 PJ 15.7 16.1 14.4 31.8 30.4 Condensate 000 bbls 357.8 377.1 351.2 734.9 733.6 Crude oil 000 bbls 5.4 5.0 6.1 10.4 13.7 Total production mmboe 3.1 3.1 2.8 6.2 5.9 Capital expenditure US$million 4 4 (4) 8 1 1 Includes SE Gobe PNG LNG operational data Units Q2 2017 Q1 2017 Q2 2016 2017 YTD 2016 YTD (gross) Production LNG mt 2.0 2.0 1.8 4.0 3.8 Sales gas to LNG plant PJ 119 121 109 239 228 Condensate1 000 bbls 2,658 2,786 2,592 5,444 5,419 Sales gas (SE Gobe) 2 PJ 5 4 3 8 7 LNG cargoes shipped 27 27 25 54 51 1 Measured at the Kutubu entry point 2 Purchased by PNG LNG During the quarter, PNG LNG operated at an annualised rate of approximately 8.1 mtpa, lower than the previous quarter due to scheduled LNG plant compressor maintenance in May, but averaged 8.6 mtpa in June, the highest monthly rate achieved since start-up. LNG sales volumes were higher than the previous quarter due to the delivery of three DES cargoes that were shipped in late March but delivered in the second quarter. Santos Ltd l Second Quarter Activities Report l 20 July 2017 Page 6 of 12 Northern Australia Santos share Units Q2 2017 Q1 2017 Q2 2016 2017 YTD 2016 YTD Sales volume Darwin LNG LNG 000 t 87.1 95.3 98.1 182.4 191.1 Bayu Undan Condensate 000 bbls 133.6 187.5 118.8 321.1 286.0 LPG 000 t 5.6 8.3 8.1 13.9 15.9 Total sales volume mmboe 1.0 1.2 1.1 2.2 2.2 Total sales revenue US$million 36 42 35 78 71 Production Darwin LNG Sales gas to LNG PJ 4.8 5.3 5.4 10.1 10.6 Bayu Undan Condensate 000 bbls 130.6 155.7 151.0 286.3 281.2 LPG 000 t 8.6 8.6 8.4 17.2 15.2 Total production mmboe 1.0 1.1 1.1 2.1 2.2 Capital expenditure US$million 23 17 1 40 1 Darwin LNG / Bayu Undan Units Q2 2017 Q1 2017 Q2 2016 2017 YTD 2016 YTD operational data (gross) Production LNG 000 t 794 897 978 1,691 1,906 Sales gas to LNG plant PJ 48 54 59 103 114 Condensate 000 bbls 1,316 1,673 1744 2,989 3,227 LPG 000 t 71 88 90 159 162 LNG cargoes shipped 12 14 15 26 29 Darwin LNG sales volumes and production were lower than the previous quarter due to planned maintenance. Condensate sales volumes and production were lower than the previous quarter due to natural field decline and planned maintenance. During the quarter, the two-well appraisal drilling campaign in the Barossa field was successfully completed. Positive results from the campaign, including a successful production test of Barossa-6, strengthened the field’s position as lead candidate to supply backfill gas to Darwin LNG. The campaign significantly reduced resource uncertainty and further confirmed the high deliverability potential of the primary Elang reservoir. For further information, refer to ASX release of 28 June 2017. Good progress continues to be made with pre-Front End Engineering Design (pre-FEED) studies on the Barossa development concept. The development concept includes a Floating Production Storage and Offloading (FPSO) facility, subsea production system and a gas export pipeline, all located in Commonwealth waters. Subsurface data obtained from the appraisal program will now be integrated into subsurface models to support a FEED-entry decision in early 2018. The Barossa Area Development Offshore Project Proposal (Barossa OPP) has now also been published by the National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA) to provide the public with the opportunity to comment during the project’s early design phase. The Barossa offshore development area encompasses petroleum retention lease NT/RL5 and potential future phased development in the smaller Caldita field to the south in retention lease NT/RL6. Santos Ltd l Second Quarter Activities Report l 20 July 2017 Page 7 of 12 Western Australia Gas Santos share Units Q2 2017 Q1 2017 Q2 2016 2017 YTD 2016 YTD Sales volume Sales gas PJ 14.1 11.3 8.9 25.4 21.5 Condensate 000 bbls 129.3 73.1 95.0 202.4 194.9 Total sales volume mmboe 2.5 2.0 1.6 4.5 3.9 Total sales revenue US$million 65 51 30 116 74 Production Sales gas PJ 12.5 11.4 13.3 23.9 26.0 Condensate 000 bbls 118.8 106.3 133.7 225.1 254.6 Total production mmboe 2.2 2.1 2.4 4.3 4.7 Capital expenditure US$million 3 2 2 5 10 Sales gas volumes and production were higher due to higher customer nominations in the current quarter and cyclone activity impacting the previous quarter. Other assets Asia, New South Wales and Western Australia Oil (ANWO) Santos share Units Q2 2017 Q1 2017 Q2 2016 2017 YTD 2016 YTD Sales volume Sales gas1 PJ 5.6 6.7 9.8 12.3 19.5 Condensate 2 000 bbls 0.4 0.9 2.3 1.3 5.0 Crude oil3 000 bbls 948.7 955.0 1,517.3 1,903.7 3,018.8 Total sales volume mmboe 1.9 2.1 3.2 4.0 6.4 Total sales revenue US$million 79 88 118 167 217 Production Sales gas4 PJ 6.3 6.6 10.1 12.9 20.2 Condensate2 000 bbls 5.1 0.8 6.7 5.9 15.3 Crude oil3 000 bbls 984.5 972.3 1,340.1 1,956.8 2,719.5 Total production mmboe 2.1 2.1 3.1 4.2 6.2 Capital expenditure US$million 17 22 26 39 43 1 Indonesia, Vietnam, Victoria and Mereenie. Victorian assets and Mereenie sold effective 1 January 2017. 2 Indonesia and Victoria. Victorian assets sold effective 1 January 2017. 3 Mutineer-Exeter/Fletcher Finucane and Barrow Island (Western Australia), Vietnam, Indonesia and Mereenie. Mereenie sold effective 1 January 2017. Stag (Western Australia) sold effective 11 November 2016. 4 Indonesia, Vietnam, NSW, Victoria and Mereenie. Victorian assets and Mereenie sold effective 1 January 2017. Total production and sales volumes from the ANWO assets were lower than the previous half year due to the sale of the Victorian, Mereenie and Stag assets. Sales gas production in Indonesia and Vietnam was in line with the previous quarter. Stronger oil production in WA in the quarter (primarily due to cyclone-related shutdowns in the prior quarter) was partially offset by slightly lower oil production in Vietnam due to well workovers. Santos Ltd l Second Quarter Activities Report l 20 July 2017 Page 8 of 12 Corporate, exploration and eliminations Santos share Units Q2 2017 Q1 2017 Q2 2016 2017 YTD 2016 YTD Total sales volume mmboe 1.9 0.7 1.2 2.6 2.2 Total sales revenue US$million 71 40 34 111 59 Capital expenditure US$million 47 23 27 70 41 Sales volumes and revenues in the corporate segment primarily represent gas trading activities. Capital expenditure primarily represents exploration and evaluation activities not recorded against assets. Capital expenditure is higher than the previous quarter primarily due to the farm-in to Muruk in PNG. Capital expenditure Total exploration, evaluation and development expenditure is summarised in the table below. US$million Q2 2017 Q1 2017 Q2 2016 YTD 2017 YTD 2016 Capital expenditure Exploration 43 30 24 73 40 Evaluation 36 17 31 53 57 Development and other capex (including restoration) 108 87 78 195 186 Capital expenditure excl capitalised interest 187 134 133 321 283 Capitalised interest 3 2 8 5 15 Total capital expenditure 190 136 141 326 298 Exploration and evaluation expensed Exploration 10 30 15 40 28 Evaluation 4 4 9 8 19 Total current year expenditure 14 34 24 48 47 Write-off of amounts capitalised in prior years 1 4 (1) 5 0 Total expensed 15 38 23 53 47 Exploration activity The table below details wells drilled during the second quarter and their status. Well name Basin/area Target Santos % Well status Muruk 1ST3 *# PNG Southern Highlands Province Gas 20% P&A; gas discovery # Not operated by Santos. * Spud in Q1 2017, completed in Q2 2017 Positive production well test results from the Muruk 1ST3 exploration well in the Papua New Guinea Highlands were announced on 14 June 2017. The Muruk drilling program confirmed the discovery of a potentially significant new gas field, 21 kilometres northwest of the Hides production facilities. The data from the Muruk drilling program will be evaluated to assist in the definition of forward appraisal options. Well site preparations are being planned for late 2017 ahead of a potential Muruk appraisal program in 2018. Santos Ltd l Second Quarter Activities Report l 20 July 2017 Page 9 of 12 Drilling summary Appraisal/evaluation/near-field exploration (NFE) wells Well name Basin/area Target Santos % Well status Barossa 6# Bonaparte Basin - NT Gas 25% Tested; successful appraisal Cougar 1 Cooper - QLD Gas 60.06% NFE; P&A Gallan 1 Cooper - QLD Gas 60.06% NFE; P&A Hector South 1 Cooper - QLD Gas 60.06% NFE C&S; successful gas Lepard 3 Cooper - QLD Gas 60.06% C&S; successful gas Snefru 1 Cooper - QLD Gas 76.8%** NFE C&S; successful gas # Not operated by Santos. * Spud in Q1 2017, completed in Q2 2017 Development wells Well name Basin/area Target Santos % Well status Avalon 3 Scotia – QLD CSG 30% C&S; successful CSG Avalon 4 (top hole) Scotia – QLD CSG 30% Suspended for later deepening Avalon 9 Scotia – QLD CSG 30% C&S; successful CSG Avalon 10 Scotia – QLD CSG 30% C&S; successful CSG Avalon 11 Scotia – QLD CSG 30% C&S; successful CSG Avalon 12 Scotia – QLD CSG 30% C&S; successful CSG Avalon 13 Scotia – QLD CSG 30% C&S; successful CSG Avalon 14 Scotia – QLD CSG 30% C&S; successful CSG Avalon 15 Scotia – QLD CSG 30% C&S; successful CSG Big Lake 139 Cooper - SA Gas 86.81%** C&S; successful gas Big Lake 140 / 140ST1 Cooper - SA Gas 86.81%** C&S; successful gas Big Lake 141 Cooper - SA Gas 86.81%** C&S; successful gas Big Lake 142 Cooper - SA Gas 86.81%** C&S; successful gas Big Lake 143 Cooper - SA Gas 86.81%** Drilling Dullingari 42DW1 Cooper - SA Gas 60.6% C&S; successful gas Dullingari 43DW1 Cooper - SA Gas 60.6% C&S; successful gas FV11-49-2 (top hole) Fairview - QLD CSG 23.85% Suspended for later deepening FV11-55-1 (top hole) Fairview - QLD CSG 23.85% Suspended for later deepening FV11-56-1 (top hole) Fairview - QLD CSG 23.85% Suspended for later deepening FV11-57-1 (top hole) Fairview - QLD CSG 23.85% Suspended for later deepening FV11-58-1 (top hole) Fairview - QLD CSG 23.85% Suspended for later deepening FV11-59-1 (top hole) Fairview - QLD CSG 23.85% Suspended for later deepening FV11-60-1 (top hole) Fairview - QLD CSG 23.85% Suspended for later deepening FV11-61-1 (top hole) Fairview - QLD CSG 23.85% Suspended for later deepening FV11-62-1 (top hole) Fairview - QLD CSG 23.85% Suspended for later deepening FV11-65-1 (top hole) Fairview - QLD CSG 23.85% Suspended for later deepening FV11-66-1 (top hole) Fairview - QLD CSG 23.85% Suspended for later deepening FV11-67-1 (top hole) Fairview - QLD CSG 23.85% Suspended for later deepening FV12-37-1 (top hole) Fairview - QLD CSG 23.85% Drilling Inca 1DW1 Cooper - QLD Gas 60.06% C&S; successful gas Moomba 216 Cooper - SA Gas 100%** C&S; successful gas Santos Ltd l Second Quarter Activities Report l 20 July 2017 Page 10 of 12 Well name Basin/area Target Santos % Well status RM02-46-1 Roma - QLD CSG 30% C&S; successful CSG RM02-47-1 Roma - QLD CSG 30% C&S; successful CSG RM02-51-1* Roma - QLD CSG 30% C&S; successful CSG RM02-52-1 Roma - QLD CSG 30% C&S; successful CSG RM02-53-1 Roma - QLD CSG 30% C&S; successful CSG RM02-54-1 Roma - QLD CSG 30% C&S; successful CSG RM03-38-1 Roma - QLD CSG 30% C&S; successful CSG RM03-39-1 Roma - QLD CSG 30% C&S; successful CSG RM03-69-1 Roma - QLD CSG 30% C&S; successful CSG RM08-40-1 Roma - QLD CSG 30% C&S; successful CSG RM08-44-1 Roma - QLD CSG 30% C&S; successful CSG RM08-45-1 Roma - QLD CSG 30% C&S; successful CSG RM08-68-1 Roma - QLD CSG 30% C&S; successful CSG RM08-82-1 Roma - QLD CSG 30% C&S; successful CSG RM08-84-1 Roma - QLD CSG 30% C&S; successful CSG RM08-85-1 Roma - QLD CSG 30% C&S; successful CSG RM09-54-1 Roma - QLD CSG 30% C&S; successful CSG RM09-55-1 Roma - QLD CSG 30% C&S; successful CSG RM09-56-1 Roma - QLD CSG 30% C&S; successful CSG RM09-57-1 Roma - QLD CSG 30% C&S; successful CSG RM09-58-1 Roma - QLD CSG 30% C&S; successful CSG RM09-59-1 Roma - QLD CSG 30% C&S; successful CSG RM09-60-1 Roma - QLD CSG 30% C&S; successful CSG RM12-11-5 Roma - QLD CSG 30% C&S; successful CSG RM12-71-1 Roma - QLD CSG 30% C&S; successful CSG RM12-73-1 Roma - QLD CSG 30% C&S; successful CSG RM13-58-1 Roma - QLD CSG 30% C&S; successful CSG RM13-60-1 Roma - QLD CSG 30% Drilling Scotia 47 (top hole) Scotia – QLD CSG 30% Suspended for later deepening Scotia 50 Scotia – QLD CSG 30% C&S; successful CSG Scotia 51 Scotia – QLD CSG 30% C&S; successful CSG Scotia 67 (top hole) Scotia – QLD CSG 30% Suspended for later deepening Scotia 68 (top hole) Scotia – QLD CSG 30% Suspended for later deepening Scotia 70 (top hole) Scotia – QLD CSG 30% Suspended for later deepening The Rock 8 Scotia – QLD CSG 30% C&S; successful CSG The Rock 9 Scotia – QLD CSG 30% C&S; successful CSG The Rock 10 Scotia – QLD CSG 30% C&S; successful CSG The Rock 11 Scotia – QLD CSG 30% C&S; successful CSG Woodroyd 3 (top hole) Scotia – QLD CSG 30% Suspended for later deepening * Spud in Q1 2017, completed in Q2 2017 ** LTAP = Less than all parties Seismic activity The table below details seismic activity during the second quarter and status. Permit Basin/area Survey Type km/km2 Status WA459P Bonaparte Fishburn 3D 3D 600 km2 28% complete Santos Ltd l Second Quarter Activities Report l 20 July 2017 Page 11 of 12 Abbreviations and conversion factors Abbreviations Conversion factors C&C cased and completed Sales gas and ethane, 1 PJ 171.937 boe x 10 C&S cased and suspended Crude oil, 1 barrel 1 boe CSG coal seam gas Condensate, 1 barrel 0.935 boe FPSO floating production, storage and offloading LPG, 1 tonne 8.458 boe GJ gigajoules LNG, 1 PJ 18,040 tonnes kbbls thousand barrels LNG, 1 tonne 52.54 mmBtu 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 Santos Ltd l Second Quarter Activities Report l 20 July 2017 Page 12 of 12