Killajoules

Santos to acquire 100% of Eastern Star Gas Consolidates strategic position in NSW’s Gunnedah Basin
Santos is pleased to announce that it has reached binding agreements to give effect to:

• the acquisition of 100% of the outstanding ordinary shares in Eastern Star Gas Limited (ESG); and
• the subsequent sale of a 20% working level interest in ESG’s permits in the Gunnedah Basin, northern New South Wales, for A$284 million to TRUenergy Holdings Pty Ltd (TRUenergy).

Halyard-1 gas comes on line
Santos today announced that gas production had commenced from the Halyard-1 well, located in the Greater East Spar development area offshore Western Australia.

Prime Minister Julia Gillard today officially launched works on the Santos GLNG liquefied natural gas plant
Prime Minister Julia Gillard today officially launched works on the Santos GLNG liquefied natural gas plant on Curtis Island, signalling the start of a new economic boom for the region.

Santos Gas discovery at Zola in the Carnarvon Basin
Santos today announced that the Zola-1 exploration well in WA-290-P, located in the Carnarvon Basin offshore Western Australia, has intersected over 100 metres of net gas pay sands over a 400 metre gross interval in the primary target, the Mungaroo formation.

Macmahon awarded civil works contract on Curtis Island
Macmahon Holdings says it has been awarded a $150 million Gladstone LNG civil works subcontract in Queensland.

Santos increases 2P reserves to 1,445 million barrels
Santos today announced that proved and probable (2P) hydrocarbon reserves increased to 1,445 million barrels of oil equivalent (mmboe) as at the end of 2010. This represents a 2P reserves replacement ratio of 110% and is the company’s seventh successive annual increase in its reserves.

Fluor Awarded $3.5 Billion EPC Contract by Santos for Gladstone LNG Project in Australia
Fluor Corporation (NYSE: FLR) announced today that it was awarded an engineering, procurement and construction (EPC) contract by Santos Ltd. (STO AU) for its Gladstone Liquefied Natural Gas (GLNG) project in Queensland, Australia. Fluor's EPC contract includes upstream facilities associated with the 7.8 million tonne-per-year liquefied natural gas (LNG) project that will extract and liquefy gas from coal deposits for eventual export to Asia and other global markets. Fluor booked $3.5 billion in its fourth quarter of 2010 for this new contract.

Saipem awarded new onshore contracts worth approximately $1 billion
In Australia, Gladstone LNG Operations Pty Ltd awarded Saipem the EPC contract for the engineering, procurement and construction of a gas pipeline, 42 inches in diameter and 435 kilometres-long, which will connect the gas fields in the Bowen and Surat Basins, in the area between Roma and Emerald, Queensland, to the Gladstone State Development Area (GSDA) on the Coral Sea shore, near the city of Gladstone, Queensland, where a LNG liquefaction and export facility will be built.

Australia: Total and partners launch the development of the GLNG project
Total and its partners Santos (operator), Petronas and Kogas announce the sanction of the GLNG project in Australia, representing a 16 billion dollars investment. The GLNG project consists of the development of coal seam gas fields, the construction of a 420 kilometres gas transmission pipeline and of a liquefaction plant of 7.2 million tons per year (Mt/y). First Liquefied Natural Gas (LNG) will be delivered in 2015 and plateau production of the LNG plant is expected to be reached in 2016 for more than 20 years.

GLNG project sanctioned
Santos today announced that the GLNG partners have taken the final investment decision approving development of the US$16 billion, 7.8 mtpa GLNG project in Queensland.