…T DELIVER ON THE STRATEGY Santos continues to ta into the spirit and commitment of the entrepreneurs and explorers who laid the Company’s foundations as we deliver on our growth strateg y. Today, Santos is a major Australian oil and gas exploration and production company growing a global energy business through: LEVERAGING B ASE BUSINESS CREATING OPPORTUNITIES CAPTURING AND DELIVERING GR OWTH MANAGING OPTIONS Annual Report 2004 1 Creating value from th base business through environment, health, safety and operation al excellence, optimisation programs and cost lead ership. Maximising the value of th exploration program, building  a better and more balanced portfolio and pursuing new opportunities. Commencing new production, advancing key projects, extracting value from our infrastructure position and  seeking innovative commer cial arrangements. Delivering improved returns,  strong cash flow and reserve replacement through disciplin ed portfolio management, strategic acquisitions an divestments, and making sustainable progress.