This is 21% more than the $126 million spent on exploration in 2004.

Oil is the main focus of the 2005 program with most activity in the Kutei and East Java Basins offshore Indonesia, the Gulf of Suez in Egypt, the Bonaparte

Basin in the Timor Sea and the Carnarvon Basin offshore Western Australia.

“The 2005 program continues Santos’ emphasis on more globally-focused exploration as an important part of our growth strategy,” said Santos managing director, John Ellice-Flint.

“We are commencing 2005 with a very high activity level in the first quarter.”

Key wells in the first quarter are: three deep water wells in the Kutei Basin, one of which has already spudded; two wells in the Gulf of Suez; and the Cougar prospect in the Gulf of Mexico.

It will also drill the Agung oil prospect in the North Bali 1 PSC, which is due to spud within days.

Santos has said the Agung well is a high-impact prospct that could possibly be worth more to the company than its recent huge find at the nearby Jeruk field.

Later in the year, other key wells will be drilled in Australia's Otway, Bonaparte and Carnarvon basins, as well as in the Gulf of Suez, East Java, and the US.

Santos has also begun an extensive 3D seismic acquisition program in the Sampang and Madura offshore production sharing sontracts in East Java.

Santos has also commenced an extensive 3D seismic acquisition program in the Sampang and Madura Offshore Production Sharing Contracts in East Java.

At 1520 AEDT Santos shares were 20 cents or 2.2 per cent higher at $9.30.