former santos boss heats up blue energy

Former Santos boss John Ellice-Flint heats up Blue Energy

by: Cameron England From: AdelaideNow February 16, 2012 11:18am


JOHN Ellice-Flint is planning a return to the petroleum industry in the coal seam gas sector he helped pioneer.

Mr Ellice-Flint will join Blue Energy, subject to shareholder approval, as an executive director charged with growing the company's resource base in Queensland.

While managing director of Santos from December 2000 to March 2008 Mr Ellice-Flint was the driver behind the development of the company's eastern states coal seam gas portfolio, which now underpins its plans to build a liquefied natural gas plant at Gladstone on the Queensland coast.

Investors appear to have confidence he can do it again with Blue Energy, pushing the company's shares more than 10 per cent higher in early trade to 8.7c, despite a $10 million capital raising at 6.25c also being announced.


Mr Ellice-Flint will join with a modest salary of $200,000 per year, but a sign on bonus of 41.2 million shares, worth about $3.6 million.

He will be eligible for another 82.5 million options, with a strike price of 6.25c, if he meets three targets, two relating to gas reserves and one related to the market capitalisation of the company.

Santos grew by more than $4 billion in value under Mr Ellice-Flint's stewardship, until he was replaced by David Knox, who was picked to spearhead the company's next growth phase.

He has a keen knowledge of the Surat and Galilee basins where Blue Energy's assets are, and actually did his honours thesis on part of the Surat.

Mr Ellice Flint said he still had a hunger for finding oil and gas.

"It's something I've got a passion for," he said.

"The coal seam gas industry is one I'm quite close to and familiar with, and it's a young entrepreneurial company and I like growing things, building things, and I think this has the basic building blocks to take it to the next step.

"I like finding oil and gas, I like being in the oil and gas business."

Mr Ellice-Flint said his first task would be to get out into the field and assess the company's assets.

He said his role would be across the board, taking in geotechnical matters, board management and exploiting his network in the industry.

Blue Energy chairman peter Cockcroft said his appointment was a coup for the company.

"His ability to construct and execute deals will assist in achieving our goal of seeing the company's portfolio value increase in the short and medium term and, on behalf of my fellow directors, I look forward to welcoming John as a director," he said.

Mr Ellice-Flint is also chairman of Port Lincoln-based aquaculture company Clean Seas Tuna.

Mr Ellice-Flint's appointment, his remuneration package and the $10 million share placement will be subject to shareholder approval.

Current shareholders will also be able to take part in a share purchase plan at 6.25c per share, up to a total of $15,000.