another article

Volume is already 10mil+ on the volume.

Looks like there's a lot of money sitting on the sidelines waiting for the next CSG deal (since AOE's t/o by Shell & post RSPT). Dont think its the average trader pushing up the volume, should b insto's (with deeper pockets) taking up position.

As per that article earlier this morning in the Australian, Deutsche Bank were advising STO & Shell, seems like game on.

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See link here

David Knox ready to offer Gladstone equity
John Durie From: The Australian July 09, 2010 1:27PM

WHILE the race to get Gladstone's first coal-seam project under way may be fictional, Santos believes it's placed for consolidation.

Santos believes its preparation has put it in a strong position to be part of the expected consolidation of the industry.

Todays report in The Australian, highlighting talks with Shell and others, helped send the Santos stock price up some 7.3 per cent to $13.69 in early afternoon trade.

The company confirmed the talks without going any further, but Santos boss David Knox has made clear he is happy to talk to anyone and would be prepared to offer equity in the project to those wanting to buy the gas.

Korean Gas and Sinopec are both talking with Santos about possible equity stakes and, obviously, clarity around the new tax arrangements has made it easier for Knox to do deals.

The Shell talks are more along the lines of collaboration, with potential equity in a second gas train rather than equity in the overall project, but its early days on this one.

Formal confirmation of any deal is not expected to be imminent.

Santos has already received Queensland environmental approval for the project and, as with BG, is negotiating with that state government to get federal approval.

Both BG and Santos are further down the process than Origin, but Origin boss Grant King seems unfussed, noting its just a matter of getting customers when ready.

There are now four projects being planned, including the Arrow-Shell project, but most expect only two will see the light of day