Hi psi81,Reading the O&G press of late, I note that Santos...

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Oldmarty

128 Posts.

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09/11/22

16:47

Post #: 64676183
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Originally posted by psi81: ↑

It's interesting to them, but it's not going anywhere. They control the resource, it'll still be there in 10 years if they want to chase it then. They've got trillions of cubic feet in their NT shale basin, trillions in undeveloped Qld CSG, trillions at Narrabri, trillions in the Cooper and no doubt trillions in several locations offshore, all competing for E&A dollars.

It all comes down to where they sit in the capital allocation process. Usually the number they rank them by is the risked mean EUR NPV, but when deciding where to allocate capital for a given year, corporate and political factors come into it.

Unless the NT government forces them to drill the well under threat of relinquishment they will delay as long as they can, as long as there are higher risked NPV plays ahead of Dukas in their exploration play book.

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Hi psi81,
Reading the O&G press of late, I note that Santos recently announced a new strategy with news about a drop in output of about 10% in 2023.

They also predicted declining production in 2023, whilst increasing their spend on new gas and oil developments along with carbon capture and storage.

The stated new corporate purpose for Santos is to provide cleaner energy that is both affordable and sustainable and to help create a better world for everyone. That all sounds great but ………..

They say they have restructured their business into two divisions, 1. Upstream Gas and Liquids & 2. Santos Energy Solutions. The plan being to build a transition business which includes decarbonisation and a carbon management services business.

Perhaps this new philosophy from Santos will help CTP more actively pursue our Amadeus sub-salt opportunities in 2023 and see Dukas, Mt Kitty & Mahler turn desert sand into gold.

Also from reading the latest CTP quarterly activities report, our CEO states that Santos is advancing threeexploration wells, with drilling anticipated to start sometime in 2023, targeting hydrocarbons, helium and naturally occurring hydrogen.
Leon D. states that these wells are important to us as they give us the opportunity to leverage our strengths in natural gas to aid Australia’s energy transition, as well as providing much needed building blocks for a future business in helium and naturally-occurring hydrogen production.

Leon’s above statement could almosthave come from the new book of doctrine, according to Santos. Just this onceSantos may be about to help CTP rather than hinder us as has so often been thecase.

CTP Price at posting: 8.0¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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