big buy after close, page-6

I have just read the article . It is reassuring that Aust has the potential to move to No 2 producer after Qatar.

It makes no mention of the Gunnedah Basin. To me that is a serious error

Between Gladstone and Gunnedah Santos the potential to double NWS.........and production costs cheaper

from Eureka report...............(the best newsletter)

"Our first risk is that Santos has made a miscalculation in its reserves but that is unlikely give there has been a lot of confirmation work done, including more than a million drill holes undertaken by state governments. Eventually, Santos plans five LNG export gas trains but it will start with one.

These trains will cost substantially less than the developments on the North-West Shelf. While the cost of LNG plants onshore will be roughly the same, the cost of drilling and extracting the Santos gas is about half what is required off the coast of WA.

Moreover, whereas in WA enormous sums must be spent on drilling, which does not produce cash for many years, in the case of Santos it will be able to extract a cash return very quickly because it is set to be the key supplier of gas to Brisbane, Sydney and probably Melbourne.

Over decades Santos fostered the development of a network of pipes from the Cooper Basin, and the new fields will be able to use that base network. There are very few gas producers in the world that can combine enormous reserves and a substantial local market with a huge export business.