2009-08-19-2007-03-01

Proved: 142.6 Bcf

Santos CSG Pty Ltd., a subsidiary of Santos Ltd., Adelaide, Australia, (Nasdaq: STOSY, Australia: STO) has increased its unsolicited bid to acquire Queensland Gas Co. Ltd., Brisbane, Australia, (Australia: QGC) to A$1.80 per share in a deal valued at US$752.7 million (A$960 million). The previous offer was for A$1.26 per share in a deal valued at US$451.5 million (A$606 million). As part of the proposal, Santos would require Queensland Gas to establish a new publicly listed company to boost the development of Queensland's coal seam gas industry. The company would have reserves of approximately 9 trillion cubic feet of original gas in place. Santos had previously stated that it had reviewed a report by Queensland Gas saying the Santos offer undervalued the company, and that Santos concluded that it did not contain any information that increases the company's value. Queensland Gas had rejected the previous offer as "opportunistic and patently inadequate." Santos managing director John Ellice-Flint says, "Santos has structured its offer to provide QGC shareholders with a very attractive cash component and shares in a dynamic new entity that would be led by QGC's managing director Richard Cottee and his highly successful team." Queensland Gas' assets are in the Surat Basin in southern Queensland, and the company has a current focus in the Berwyndale South Field. The company also has pilot wells in the Argyle East prospect 25 kilometers southwest of Chinchilla, Australia. Reserves are 142.6 billion cubic feet of proved gas, 258.7 billion probable, and 1.3 trillion possible for total reserves of 1.7 trillion cubic feet of gas.