Santos and Oil Search merger becomes effective

• The merger of Santos and Oil Search is now effective following approval of Oil
Search’s Scheme of Arrangement by the National Court of PNG
• Oil Search shareholders to receive 0.6275 new Santos shares for each Oil Search share held
• The merger creates a regional champion of size and scale, with a market capitalisation of approximately A$22 billion1
• The merged company would have pro-forma 2021 production of approximately 117 million barrels of oil equivalent2 (mmboe) and pro-forma 2P+2C resource base of 4,867 mmboe3
• Santos expects the merger to unlock pre-tax synergies of US$90-115 million4 per annum (excluding integration and other one-off costs)

Santos is pleased to announce that the merger with Oil Search is now effective following the

approvals by Oil Search shareholders and the National Court of Papua New Guinea.

Oil Search shareholders will receive 0.6275 new Santos shares for each Oil Search share

held on the record date of 14 December 2021.

Santos Chairman Keith Spence said: “The merger combines two industry leaders to create a

regional champion of quality, size and scale with a unique and diversified portfolio of longlife, low-cost oil and gas assets.

“We look forward to integrating our businesses to create one high performing team – with a

vision of becoming a global leader in the energy transition,” Mr Spence said.

Santos Managing Director and Chief Executive Officer Kevin Gallagher said: “Santos and Oil

Search are stronger together and will have increased scale and capacity to drive a

disciplined, low-cost operating model and unrivaled growth opportunities over the next

decade.

“The merger creates a company with strong and diversified cash flows, providing a platform

to deliver shareholder returns and successfully navigate the transition to a lower carbon

future.

“Additionally, the merger builds on our industry-leading approach to ESG through the

combination of Santos’ leading carbon capture and storage capabilities with Oil Search’s

social programs in PNG and North America,” Mr Gallagher said.

Following the implementation of the merger, three non-executive directors from Oil Search

will join the Santos Board. Santos’ head office will remain in Adelaide.

The remaining dates for implementation of the Scheme of Arrangement and other key dates

are set out below*:

Event Estimated date*

Last trading day for Oil Search shares on ASX and PNGX 10 December 2021
New Santos shares commence trading on ASX and PNGX5 on a deferred settlement basis 13 December 2021
Record Date 14 December 2021
Implementation Date 17 December 2021
Despatch of holding statements for New Santos Shares 20 December 2021
New Santos shares commence trading on ASX and PNGX5 on normal settlement basis 20 December 2021

*All dates are indicative only and subject to change.

Citigroup and JB North & Co are acting as financial advisers and Herbert Smith Freehills and

Dentons are acting as legal advisers to Santos.

Ends.