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1 22 March 2007 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, Kutubu 2, Ghard-1, Bina Bawi-1, Kasad-1, Riyan-1) 22 March 2007 Please find attached. Yours sincerely MICHAEL SULLIVAN General Counsel/Group Secretary Encl.

2 WELL NAME: Juha 5 Oil Search reports that as at 0600 on 22 March, the Juha 5 well was at a depth of 3,614 metres and drilling ahead in 6 ¾ hole. During the week, two more cores were cut in the Toro reservoir section. In total, 30.4 metres of core has been recovered and hydrocarbon shows have been observed in core chips across the interval. The well will be drilled to a suitable total depth below the reservoir to allow wireline logs to be obtained in the next few days. Juha 5 is located 40 kilometres north-west of the Hides gas field. Three wells were drilled on the Juha structure in the early 1980s, and proved the presence of a condensate-rich gas accumulation. No gas-water-contact was located in these wells and the Juha 5 well is drilling 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 subsea, 3,550 metres MD. The planned total depth of the well is 3,700 metres MD. The well will be followed 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.

3 WELL NAME: Kutubu 2 Oil Search reports that as at 0600 on 22 March, the Kutubu 2 exploration was at a depth of 953 metres and pulling out of the hole in preparation to run and cement 13-3/8 casing. Drilling progress for the week was 867 metres. Kutubu 2 is located in PPL 219, and is 18 kilometres east of the main Iagifu-Hedinia field, and 12 kilometres east of the Arakubi prospect. The primary objective is the Toro Sandstone with a secondary target in the Iagifu Sandstone. The planned total depth of the well is 2,300 metres MD. The participants in Kutubu 2 are: Oil Search (PNG) Limited 72.52%, operator Ampolex (Highlands) Ltd* 18.73% Merlin Petroleum Company 8.75% * Ampolex holds its interests in PPL 219 in trust for Oil Search (PNG) Ltd.

4 WELL NAME: Ghard-1ST Oil Search reports that as at 0600 hrs Egypt time (+3 hrs GMT) on 21 March, Ghard-1ST was at a depth of 3,436 metres and drilling ahead in an 8-½ hole. Progress for the week was 229 metres. During the week, oil shows were observed in the Bahariya Formation 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 an extended drilling programme of probably four wells in the East Ras Qattara block in The objectives of the Ghard-1 well are reservoirs in the Cretaceous Abu Roash, Bahariya and Alam El Bueib Formations, with a prognosed total depth of 3,950 metres. Production storage facilities are located in nearby adjacent concessions. The participants in the Ghard-1 well are: Sipetrol International S.A. 50.5%, operator Oil Search (Egypt) Limited 49.5%

5 WELL NAME: Bina Bawi-1 Oil Search reports that as at 0600 hrs Iraqi time (+4hrs GMT) on 20 March, the Bina Bawi-1 well was still waiting on materials and testing equipment for the planned testing programme. 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 participants in the Bina Bawi-1 well are: A & T Petroleum 50%, operator Hawler Energy Limited 50%

6 WELL NAME: Kasad-1 Oil Search reports that at 0600 hrs Yemen time (+4 hrs GMT) on 21 March, the Kasad-1 well was at a total depth of 1,920 metres and the testing programme was underway. During the week, the first test (DST-1) in the primary Qishn target was perforated and flow testing using an ESP has commenced. It is anticipated that results of this test will be known in the next few days. The Kasad-1 well is testing a four-way dip closed structure updip of the recently drilled Ghobata structure. The primary objective of the well is the Qishn Clastics and fractured Basement, with secondary objectives in the Lam and Kuhlan Sandstone. The planned total depth of the well is 2,000 metres. The participants in Block 49 are: Oil Search 42.33% CCC 42.67% (operator) The Yemen Company 15.00%

7 WELL NAME: Riyan-1 Oil Search reports that as at 0600 hrs Yemen time (+4 hrs GMT) on 21 March, the Riyan-1 exploration well was at a depth of 1,208 metres in a 17-1/2 hole. Progress for the week was 276 metres During the week, 17-½ hole section was completed and 13-3/8 casing was run. The Riyan-1 well is located in Block 15, offshore Yemen, in 562 metres of water. The primary objective of the well is to test a structural closure containing clastic reservoirs of the Late Oligocene Upper Ghaydah Formation. The planned total depth of the well is 2,738 metres. This is the first well in a two well back-to-back programme in the block. The participants in Block 15 are: Oil Search 35.00% (operator) Kufpec 45.00% MND 15.00% The Yemen Company 5.00% PETER BOTTEN Managing Director For further information please contact: ANN DIAMANT Investor Relations Manager Tel: Mob: +61 (0)