Lash,The papers this morning were suggesting between 50 and 60...

Lash,

The papers this morning were suggesting between 50 and 60 cents per STO share.

Excerpt from Macquarie Equities yesterday

Trading Pick of the Day
18 October 2004

STO: Jeruk 2 Delivers Oil

Santos (STO) this morning announced that its Indonesian Jeruk operations has discovered both oil and gas deposits. Santos’ share price has rallied sharply following the reported discovery, touching highs of $7.97 (up 27c). Macquarie Research Equities (MRE) believe significant upside potential for STO flowing through from exploration drilling.

Santos’ initial tests showed that the Jeruk 2 well offshore East Java flowed 7,488 barrels of oil per day, as well as 2.21 million cubic feet of gas per day. Santos stated that “preliminary results from Jeruk Two are very encouraging” and they look forward to the final evaluation of the well.”

MRE believe that assuming Jerk’s full potential is realised, around $0.70 per share would be added to their 12 month price target of $7.38.

Traders looking for maximum exposure to short-term movements in the STO share price should consider the following equity warrants for a high-risk, high-return strategy.

Investors and traders looking for short to medium-term leveraged exposure to the STO share price should consider Macquarie Instalments for a higher risk, higher return alternative to direct share investment.

Long term, more conservative investors looking for a simple, "set and forget" investment should consider the Self Funding Instalments over STO, STOSMT. SFI's are moderately geared, have no annual resets and a maturity date in up to five years.