It seems that the best way to keep Holy posting is to challenge his views. :)
DC valued ESG publically at $2.4 billion, based on 2P reserves of 845PJ. ESG had 988PJ of 2P at last upgrade, based on now 6 month old data.
$175m of that is only 7% of that $2.4 billion figure. SEVEN percent.
Not much really. Around the long term bond rate.
Then consider the percentage increase in ESG's 2P reserves just in the last 6 months. It will be at least 50%.
Consider the commercial advantage in beating the other projects to the punch, with securing extra reserves, securing offtake equity deals... is this worth more or less than 7%?
Personally, I think Santos waiting for a 7% saving, in a competitive environment with big advantage for moving forward, is folly indeed.
BUT, that is Santos' perspective.
I hope, sincerely, that nothing happens for a long long time. Because I can assure you ESG's reserves are growing faster than seven percent.
Y
ESG Price at posting:
79.0¢ Sentiment: Buy Disclosure: Held
