Santos Limited

On Wednesday, the Australian sharemarket closed lower despite a positive start led by rally on Wall Street overnight. The benchmark S&P/ASX200 index was down 23.6 points, or 0.67 per cent, at 3,499.63 while the broader All Ordinaries index shed 29.9 points, or 0.85 per cent, to 3,483.23. The market has lost half its value, or A$804 billion in just over one year. Analysts say that the overall trend may not change without catalyst for the market to go up while the overseas will pull the Australia market lower each time it seems to hit the bottom.

During yesterday's trading, Australian stocks closed lower for the second consecutive day on Thursday, falling by more than 4%. The market was dragged down by big losses in the resources sector amid renewed fears of a global economic slowdown. The two days drop gave up all the gains early this week.

The Australian stock market has received negative leads from Wall Street on Friday. Oil rose again in anticipation of Hurrican Gustav making landfall in the continental US.

Beach Petroleum Limited (ASX:BPT) Announce the drilling report for the week ending 27 August, 2008 are attached. In areas operated by Santos, one well is in progress (Naccowlah West-22, Beach 38.50%) and one well has been plugged and abandoned (James-2, Beach 17.14%).

The Australian share market had its best day in two weeks yesterday, with the market closing firmly in the black after ovecoming a negative lead from Wall Street.

The Australian share market continued its losing streak yesterday, falling almost 1% after the financial sector fell on concerns about ANZ Bank's increased debt provisions. The biggest five banks have lost A$29.1 billion in market cap in two days, according to Bloomberg data. Australia's biggest banks may probably continue to suffer in the global economic gloom, while the bad news came amid another horror day for banking stocks.

The Australian share market closed in the black again yesterday, driven by a stronger financial sector, but weaker resource stocks capped the gains. The benchmark S&P/ASX200 index was up 38.8 points or 0.76% to 5144.1, while the broader All Ordinaries gained 26.8 points or 0.52%, to 5188.4.

Beach Petroleum Limited Weekly Drilling Report Week ending 2 July 2008

Under a proposal announced by Santos (ASX: STO) today, Santos would require Queensland Gas Company Limited (ASX: QGC) to establish a new ASX-listed company to boost the development of Queensland's coal seam gas industry.

The 2006 result - which was at the upper end of the Company's forecast range - was 9% higher than 2005 total production of 56.0 mmboe and 7% higher than Santos' previous record production of 57.3 mmboe achieved in 2002.