locking up esg scrip, page-9

Yaq

Yes buddy was correct and you make a good point about STO covertly increasing its significant holding and going over 20%.

Their intent was also shown by Knox's recent comments about GB gas going north to GLNG and the fact that he talked about Santos having 48% of the "ESG footprint". Why would you brag about not having a majority holding or control? Unless perhaps you intended to have it down the track a bit. And he stated quite clearly in the March Investor Presentation that Santos owned 20.97% of ESG. That was IMHO a warning shot across the bows of any other major player thinking of a move on ESG.

Actually as I have posted before I take exception to Knox claiming to have 48% of the ESG "footprint" because he doesn't. Admittedly he does when it comes to the very important PEL238 and the other 2 leases in the JV with ESG. But with regard to the northern JV leases (with OIP) Santos only has 20.97% of ESG's interest in those leases that have recently been estimated to have around 4,000 PJ of CR and PR. So as things stand at present (and this is oversimplified because ESG does not have 100% of the CSG interests in the OIP/ESG JV leases) the total resource on which ESG has a footprint is 9,000 PJ (STO's 48% is 4,320 PJ) in PEL 238 plus 4,000 PJ (STO's 20.97% is 839 PJ) in the OIP/ESG JV leases = 13,000 PJ in total. Of which STO has a 5,159 PJ "footprint" = 39.7%. And once again STO has no rights over what happens to any gas that might eventually be produced from the norther leases.

H