AofA: Just a couple of questions if I may re your Santo...

AofA: Just a couple of questions if I may re your Santo penalties comments etc:

Are you aware of any issues STO may have had at their end with compressor failures etc that may have delayed their readiness to accept gas... even at the low summer rates they are specifying/taking from NXS?

Are you aware that condensate offtake appears to be running ahead of the expected rate with significant upside once the non summer gas supply peak approaches? Upside that appears to be split WITH STO?

Are you aware that in the extreme case that STO WAS in a legal position and then WANTED to penalise their new supplier that it would be in a form whereby it was backended onto the existing take or pay contract?

And you’d also be aware that even then STO would have to want to penalize their new partner
who just may have an additional 71PJ of gas (plus a commensurate increase in the already higher rate of condensate) to sell and also has the pipeline capacity to do just that.

No doubt STO would think long and hard particularly if they’re a likely bidder for 50% of Longtom should NXS offload it to raise cash so as to quickly drill Auriga with a view to doubling the greater Crux 1P/2P in tandem with a farm down of one or both.

Not sure what STO stand to gain from executing a penalty even IF they were in a legal position to do it.
What would 6 weeks at summer rates be? Or even at average rates of gas supply be, tacked onto the end of a contract that will likely change once NXS upgrades its available 1P/2P ie sells the additional 71PJ even before any further exploration in the area. Millions? What are we talking about here? $1m/month max backended? To PO a new supplier with the gas STO don’t have?

Finally will either NXS or STO be around in 15 years time so as to collect?

BTW I expect you’ve spoken to the new board members and Viking in the past week re your claims they may be sellers/shorting the stock. I understand none are sellers so none would likely be shorting a stock they’ve heavily invested in. (Exactly who would be shorting NXS? Not even those attempting to build a stake would be doing that? Would they? ) Would raise some interesting discussions if directors were shorting a stock they had pumped millions into as recently as a couple of months ago. Wonder what sort of legal redress that would hand NXS. Any ideas?

Just trying to diplomatically discuss your “claims”.

Price action appears to show a decent buyer sitting back and soaking up quantity in strategic strikes. Happily not a seller at these low levels at the bottom of the range.