STO - SANTOS LIMITED

[auroraoz]

What indicated a decline in the fields? or was it only rumour based on the decreased lift .that christmas , new year was also the time of the cyclones in the west shutting down production, not only of fpso vehicles but also iron ore shipments. That would mean it was a phantom decline, but can anyone advise ?

aoz

[abner29]

Just an offhand thought, but I wonder if some STO holders aren't looking at it and WPL selling around the same price and recognizing the comparative growth being better in WPL? Also, disappointment with STO failing to climb aboard the PNG development and facing the probability of its reserves there remaining stranded? Mutineer short term positive and long term disappointment. Political risk in Indonesia.

[sook]

In reply to: abner29 on Thursday 30/03/06 01:38am

i can understand their hesitation with png pipeline involvement. they would rather sell their hides gas into asia which would get a much better price than pumping it to australia. though, the former option would be a few more years away. when do these chumps have their board meetings? if u believe the fin review, the ceo was to take recommendations re pipeline to the board.

 

 

[abner29]

Sook: Good point. I do recall reading somewhere that the Chinese had made some kind of overture to PNG about setting up an LNG facility for export to China. Perhaps this is what STO envisions?

[auroraoz]

In reply to: abner29 on Thursday 30/03/06 10:50am

would make their ozzie gas interests a bit more valuable into the future. Why bring coal to newcastle, or gas to queeensland? its worth two to three times as much somewhere else

aoz

[Guest]

Great chart break out here at the moment! http://www.sharescene.com/html/emoticons/smile.gif Aussie stock report recommending also. Ive bought in today.

[auroraoz]

In reply to: influxweb on Tuesday 04/04/06 02:32am

good buy yesterday but even better a fortnight back 10.80--11.00

happy 4 you (and me)

aoz

[balance]

from the news wires...

 

Santos Ltd is likely soon take up an interest in Papua New Guinea's gas pipeline project which will deliver gas to markets in Australia, Macquarie Equities said in a research note.

 

The firm said it expects Australia's second largest oil and gas group to take up a 9.5 pct stake in the 3.5 bln usd project, operated by Exxon Mobil Corp.

 

Santos has a 25 pct interest in PNG's Hides gas field, the largest field underpinning the proposed project on which a final investment decision is expected this year.

 

Santos acquired the stake in 1999 from Oil Search Ltd for 85 mln aud but has not been a member of the project's marketing consortium due to a perceived conflict of interest with its Cooper Basin gas assets in central Australia.

 

Unitisation of the Hides interest would give it 9.7 pct of the project.

 

Macquarie also anticipates that the company will announce its intention to take 50 petajoules of PNG gas per annum through its Moomba gas facilities for the next 15 years.

 

The Moomba plant, in north-east South Australia, currently processes Cooper Basin gas.

 

It said strategically, the purchase of 50 petajoules of PNG gas is a positive to the company as it allows Santos to remain a major contractor of gas in the eastern Australian gas market.

 

But, on the negative side, Macquarie said the deal would provide the market with an indication of the long-term commerciality of the Cooper Basin gas reserves which have been Santos' core gas assets.

 

'While the purchase and on-sale creates a margin in the near term, the question remains as to what gas price is required at Moomba to make tight, currently uncommercial, Cooper Basin gas commercial,' Macquarie said.

 

In February, Santos confirmed it was undertaking due diligence on the PNG project and was engaged in negotiations with the project's various stakeholders.

 

The other stakeholders are Australian Gas Light Co, Nippon Oil Corp, and PNG landholder company MRDC.

 

[monkey man]

In reply to: Fitzy on Wednesday 22/03/06 01:03pm

QUOTE

STO has lost $2.30 from its share price since it announced they were still doing due diligence on the PNG gas and there had been no decision on the 3rd of Feb. It closed at $13.49 that day. Probably says most people think STO should get off their bottoms and get on board.

 

Lets see it get back up there soon. With massive drilling coming up in the Cooper and overseas, this is a company that deserves to be priced higher.

 

Im looking forward to Hurricane, both for STO and BPT.

[vivonne]

In reply to: balance on Saturday 08/04/06 11:45am

My broker tells me that STO have took a call option over the project last year(at last years prices!) and the reason for delay in committing to the Pipeline is that STO are holding all the aces and are holding OSH to the increased value of the project.OSH are naturally trying to minimize their dilution as STO are looking to take the increased value of the project in a % form!

comments welcome, regards http://www.sharescene.com/html/emoticons/biggrin.gif