jp morgan initiate coverage, page-14

Follow the money...

How much drilling in the Cooper Basin does $500,000,000 buy? And yet, that is not where Santos invested their (effectively borrow) money...

How many unallocated 2P reserves does Santos own in the Cooper? Remembering that Santos have already agreed to BUY gas off JV partners in the Cooper because they don't have enough for Train 2. Is this the behaviour of a company who has enough gas for a third train? Laughable.

How much weight do you think we should give Citigroup's analysis? Well, to put it in perspective, Citi initiated coverage of ESG with a SELL recommendation. Interesting in itself. More interesting is the fact that, as Monsters pointed out in a previous post, Citi have teamed up with Morgan Stanley in wealth management, and Morgan Stanley acted on behalf of Santos in their capital raising 12/10. And they are still acting on Santos' behalf. So should we be surprised when Citi come out with this sort of stuff? No at all.

Takeovers 101. Tyre-kicking. Talk down the suitors need for the gas. "Yeah, we don't really NEED your gas... but we will make you this more than generous offer anyway..."

Whatever. Transparent, biased, and just plain WRONG.

Yaq