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1 28 December 2006 THE AUSTRALIAN STOCK EXCHANGE (SYDNEY) LIMITED Level 4, Exchange Centre 20 Bridge Street Sydney NSW 2000 Attention: Company Announcements Officer Dear Sir/Madam Re: Oil Search Limited Drilling Report (Juha 5 Bina Bawi-1 Ghobata-1 Ghard-1 Kareem Nubia- 1) 28 December 2006 Please find attached. Yours sincerely MICHAEL SULLIVAN General Counsel/Group Secretary Encl.

2 WELL NAME: Juha 5 Oil Search reports that the Juha 5 well in PRL 2, PNG, commenced drilling on 23 December. As at 0600 on 28 December, the well was at a depth of metres and preparing to drill ahead in a 14 3 /4 hole. During the week the 18 ½ hole was drilled to metres and 16 casing set. Juha 5 is located 40 kilometres north-west of the Hides gas field (see map). Three wells were drilled on the Juha structure in the early 1980s, and proved the presence of a condensate-rich gas accumulation. No gaswater-contact was located in these wells and the Juha 5 well will drill deeper on the structure with the aim of constraining the vertical gas column height. The well is targeting the Toro reservoir at a depth of around 3,000 metres. The planned total depth of the well is 3,700 metres. The well will be followed in early 2007 by a second well which will drill a large, untested segment adjacent to the proven segment. The objective of the two wells is to increase considerably both the proven and probable reserves. The participants in Juha 5 are: Oil Search Limited* 31.5% ExxonMobil 56.0% Merlin Petroleum 12.5% * While ExxonMobil is operator of PRL 2, Oil Search is operating the Juha wells.

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4 WELL NAME: Bina Bawi-1 Oil Search reports that as at 0600 hrs Iraqi time (+4hrs GMT) on 26 December, the Bina Bawi-1 well was at a depth of 2,671 metres and drilling ahead in an 8-1/2 hole. Drilling progress for the week was 273 metres. Bina Bawi-1 is located in the Bina Bawi Exploration and Production Sharing Agreement (EPSA) located in the Kurdistan region of northern Iraq. Oil Search has a 20% interest in the Bina Bawi EPSA operator, A & T Petroleum, and has the option to convert its 20% shareholding into a 10% direct interest in the Bina Bawi EPSA. The primary objective of the Bina Bawi-1 well is the Triassic reservoir with secondary reservoir potential in the Lower Cretaceous and Jurassic sections. The participants in the Bina Bawi-1 well are: A & T Petroleum 50%, operator Hawler Energy Limited 50%

5 WELL NAME: Ghobata-1 Oil Search reports that the Ghobata-1 well in Block 49 commenced drilling on 27 December As at 0600 hrs Yemen time (+3 hrs GMT) on 27 December, the well was at a depth of 49 metres and was drilling ahead in a 17 ¾ hole. Ghobata-1 is located 9.5 kilometres south east of the Al Nokhailat-1 well and 3.5 kilometres east of the Balharak-1 well (see map). The primary objective of the well is the Qishn Clastics and fractured Basement, with secondary objectives in the Lam and Kohlan Sandstone. The planned total depth of the well is 2,194 metres. This is the second well in a two well programme in the Block The participants in Block 49 are: Oil Search 31.75% CCC 32.00% (operator) MOL 21.25% The Yemen Company 15.00%

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7 WELL NAME: Ghard-1 Oil Search reports that as at 0600 hrs Egypt time (+3 hrs GMT) on 27 December, Ghard-1 was at a depth of 2,560 metres and was drilling ahead in a 12-1/4 hole. Progress for the week was 538 metres. Ghard-1 is located in the East Ras Qattara concession, Western Desert, Egypt, 12 kilometres north-east of the recently drilled Shahd-1 discovery. Ghard-1 is Oil Search s second well in a two well back-to-back drilling programme in the East Ras Qattara block. The objectives of the Ghard-1 well are reservoirs in the Cretaceous Abu Roash, Bahariya and Alam El Bueib Formations. The prognosed total depth is 3,950 metres. Production storage facilities are located in adjacent concessions. The participants in the Ghard-1 well are: Sipetrol International S.A. 50.5%, operator Oil Search (Egypt) Limited 49.5%

8 WELL NAME: Kareem Nubia-1 Oil Search reports that as at 0600 hrs Egypt time (+3 hrs GMT) on 27 December, the Kareem Nubia-1 well was at a depth of 360 metres and running intermediate logs in 8-1/2 hole as a result of gas shows. Progress for the week was 8 metres, which was limited by attempts to control fluid losses during drilling. Kareem Nubia-1 is located in Area A, adjacent to the Gulf of Suez in the Eastern Desert, Egypt. It is the first of up to fifteen exploration and development wells to be drilled in the Oil Search-operated concession. The objectives of the Kareem Nubia-1 well are sandstone reservoirs in the Nubia Formation. The prognosed total depth is 850 metres. There is substantial spare production capacity in the existing Area A facilities which would enable a quick development time, if the well was successful. The participants in Area A are: Oil Search (Egypt) Limited 100% PETER BOTTEN Managing Director For further information please contact: ANN DIAMANT Investor Relations Manager Mob: