if sto aren't "acquisitive', what's the plan?, page-3

SF,

To my mind, there are only two alternatives:

IS IT CORPORATE, OR IS IT COMMERCIAL?

Santos wanted the gas for SOMETHING. It has to be one of the two.

But here is the good news. ESG wins both ways.

If Santos choose the COMMERCIAL path, they use their size and access to markets to help commercialise ESG's gas. If this happens, ESG's price will rise because more gas will have found a market. ie higher reserves = a higher share price. Gas swaps with GLNG, Newcastle, power-gen. All upside to existing markets and reserves.

or

If Santos chooses the CORPORATE path, there is a bid, and of course, a higher price.


The current price will not stay where it is, because one way or the other, Santos has a reason for its investment. There will be a USE for the gas; a use that is in excess of the 1,959PJ current reflected in the 3P reserves.

Whatever you believe, there has to be A REASON for Santos' investment.

Either way, ESG wins.

Y