breakout from stammlager santos, page-6

rose,
I think it is out of line to state they are incompetent.

they are running a multibillion dollar corporation, while putting together a multibillion dollar project for hundreds of billions of dollars of revenue. its not an easy job, so some respect should be afforded there.

what you could say however, is to wonder why the hell they mopped the floors from the door to the wall. now they seemingly have to walk all over their hard work to get out the door - i.e they need reserves.

there are still some things in the woodpile which we cant see yet so it is premature for us to claim genious status as the ones who have obviously picked where they will be laying their dosh to get their necessary reserves.

the gas riddle i posted the other day, which jt picked up on, was to provoke some thought on the cost difference for Santos between using their cooper supplies versus the 'east coast acreage'. the trade off is the obvious capital outlay (dillution/cash) for an ESG acquisition + the pipeline to get it there versus the extra gas production costs and pipeline tarifs to pull gas from the Cooper - or to be more precise - the profit margin available between the two.

I discussed with a friend the other day the other opportunities ESG or a New Controller would have to monetise gas reserves. They seemed to dismiss the power and gas market options. I strongly disagree with this position. Heres why.

Marius has vision. He knows the writing is on the wall. The worlds largest coal and iron ore exporter has called it - a price on carbon is coming to an environmentally conscious market near you. be it 2 years, 5 years, or 10 years. IT IS COMING like a coal train in the night, chuggin along.

I can bet you the Casey has vision as well, so does Knox, so does Johnson. In fact, the below exert from the Metgasco presentation the other gives you the best appreciation for a very significant market for our gas.






Thats one big blue bubble!

Cheers,

SF