santos presentation., page-5

Lilac,

I expect a sweetner - hopefully more than the 2 cents that Arrow offered BOW.


I'm sure Yaq and others will refine my overview of the STO slides, but the key take out points for me regarding ESG is as follows:

a) Page 12 - This is the first time since Dec 2009 thatany details of contingent resources are discussed. The SoA DOES NOT make any reference to 3C. STO has not considered any price for ESG 3C reserves, yet, it heralds that it has 8,619PJ of 3C reserves - and quote - Post Eastern Star Gas acquisition and subsequent 20% sell-down to TRUenergy (per ASX release 18 July 2011) - unquote.

b)Page 19 - Existing PEL 238 appraisal pilots producing >2.5TJ/day.

c) Page 19 - In making reference to the PEL238 area, STO mentiones that - quote - High gas content similar to Bowen
and Surat Basins - unquote.

d) Page 19 - STO notes that - quote - World-class CSG assets resulting in competitive cost of production - unquote. It goes on to mention that
- Excellent coal thickness
- High permeability
- High gas content
- High Bcf/km2
- Existing infrastructure
- Lateral Technology

It is also the first time that we hear the the production rate of the Tintsfield pilot was 2.5Mscf and with Dewhusrt pilot starting up at 3.0 Mscf! WOW! The graph on this page also notes that there is half as much water in these two pilots than when Bibblewindi West pilot started!

The average of all the pilots in PEL238 are currently producing 2.75Mscf! From my limited reconcilation (and others please correct me here), this is right up there with some of the best know Qld CSG fields.

Hence STO used the terms - "World-class CSG assets resulting in competitive cost of production".

SO based on the above information - which WAS NOT included in the IER- there is NO WAY I will vote for the SoA with STO! Unless of course STO is willing to pay a premuim for OUR "WORLD CLASS resources" - (Santos words not mind!)

Keep up the good work on this forum lads.

Cheers from Fiji

Mr P