Ann: CEO and Board agree succession plan, page-12

MD takes a bullet - due to Board being incompetent !!!!!!!!!!!!!!!!!!!


step 1 - think abt a convertible / hybrid offering in Europe in Aug 2014 ........
gets "pulled" b/c the investors wanetd > 8.5% int rate

step 2 - borrow ADDITIONAL 1bn from Anz in early 2015 ......

step 3- NOT RECOGNISE the risk of oil price on the business .......................FFS !!!!!!!!!!!!!!!!!!!!!!!!
and so no price hedging undertaken

step 4 - some cost cutting, and also very minor asset divestments (CTP / COE deals etc) .....

Step 5 - have to supply gas from own portfolio into the GLNG project (so they have to "pay" for extraction / processing / transport) as well as GLNG joint venture production ........and whats the credit cycle for LNG projects ........90-120 days !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Step 6 - recognise that the balance sheet is stretched .......and still do SFA about it .......

step 7 - "shoot" the MD .......and PUT UP THE WHITE FLAG ........

NBB - the accounts didn't include (yearly testing) circa 600m in CB writedowns .........

very sad that it has come to this ..........well done to the Board of Santos ........how to piss money against the wall .....and your shareholders carry the can ..................nice !

rgds
Value_Hunter