Ann: Dorado Project Update, page-17

Improved Dorado economics can support capital efficiency
• Many investors have expressed a preference for Santos to harvest FCF
from existing projects (Barossa, Pikka) vs. entering a new major investment
cycle with a project such as Dorado (and Papua LNG - for which STO
does not control timing). We believe improved economics at Dorado will
allow STO to selldown its Dorado interest such that the majority of its
net Dorado project capex will be funded by a selldown transaction (ie. we
expect STO to selldown on better terms vs. CVN's 10% selldown to CPC of
Taiwan for US$146m).
• We expect the market to likely need to raise Dorado valuations (MRE
Santos valuation includes US$1.4bn or A$0.64/sh based on 80% project
interest at 60% risking factor and on our long term US$65/bbl Brent oil
assumption).