RegularASX,it looks like you got out a bit too early ?I reckon...

RegularASX,

it looks like you got out a bit too early ?
I reckon STO will test $14 again today or Monday.
The buy side is building up again, and as yet, the sellers have stayed away.
I still have my sell order in at $14.07, I may lower the price.

And... here is Morningstar's latest report:

Santos Limited (STO)
Closing Share Price: 13.630
Update: Guidance Clips our 1H10 Forecast
Recommendation: Hold
Change: Unchanged

STO expects to report 1H10 NPAT in the range $180m to $200m. It provided guidance ahead of the profit result after a survey of analyst forecasts suggested consensus of only $152m. It did say that earnings before interest, tax, depreciation and exploration (EBITDAX) would be broadly in line with analyst forecasts.

The under-estimation of 1H10 NPAT by analysts is apparently due to lower net finance costs and royalty related taxation expense. The latter is primarily a timing issue with petroleum resources rent tax (PRRT) expense heavily weighted to 2H10, combined with one-off PRRT impacts in the first half.

Our 1H10 earnings forecast of $220m is at the opposite end of the spectrum, above the guidance.
And while we gain some comfort that we had the trend broadly right, we still lower our 1H10 forecast 9% to $200m, at the upper end of guidance.
This is not a precise science given it is unclear what exceptional items STO includes in its estimate.
STO will release its 1H10 profit result on Thursday August 26.

We make no change to our $15.60ps valuation. Our FY10 earnings forecast declines 5% to 57cps on the weakened 1H10. FY11 remains 65cps. STO shares have recovered somewhat since $12 May lows. We retain our Hold recommendation. Rumours on corporate activity still surround STO. Will the company end up falling to Shell funded by a sale of WPL to BHP? Time will tell.

Corporate activity aside, we still regard WPL a superior oil and gas investment proposition. It has a tried and trusted LNG development delivery platform, a simpler portfolio of larger longer-lived assets and is further down the development path. To a would-be acquirer, STO's myriad smaller projects - non core - could be sold down to help fund entry into the developing East Coast coal seam gas space. And STO comes minus debt.

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It's interesting that they say that Woodside may wish to make a takeover offer. Or that Shell may sell it's stake in the Woodside to BHP.
Though, I don't see why Shell would have to sell its stake to fund a takeover of SANTOS, as Shell could simply get the cash from it its parent, Royal Dutch Shell ?

Interesting times ahead.