Harbour Energy, page-34

From a macro-economic point of view, I'd rather hold until early to mid 2020s.

LNG market already getting tight over northern hemisphere winter. Spot markets got better prices than long term contracts for the first time in several years.

LNG will be in significant short supply in the early 2020s. New buyers emerging so potentially earlier or to a greater degree.

Oil price outlook improving / stabilising.

Large focus industry wide on cost reduction / plant de-bottle-necking.
* Santos later on this one due to the timing of GLNG development. Upside potential especially as we enter a period of demand outstripping supply.

I've been holding STO with a mid term outlook for LNG demand improving (my mid-term is for the early 2020s). I'd rather sell at a high point in the resources cycle than for this offer - even though this offer is certainly in the green for me. Santos has the undervalued assets to easily double into an improving market. STO effectively generates cash at the current oil price which would represent a 8-10% ROI at the bid price (assuming maintaining gearing).

In my view - 3-5 years time a doubling of STO's share-price is likely based purely on the macroeconomic changes in the LNG market, in 2019, dividends are likely to return as focus shifts from reducing debt to rebuilding blue-chip image.