I guess we will only know in time whether the recent selling is...

I guess we will only know in time whether the recent selling is part of a larger conspiracy or not... or just a combination of shorters, impatient sellers looking at perceived greener grass elsewhere, lack of news, or all of the above...

But one observation. Price strength is not usually a catalyst for corporate action. Whereas price WEAKNESS brings out the predators.

People keep asking "why would Santos want to take over ESG when they would have to pay top-ups etc.?". Or indeed, why would anyone else by interested in ESG?

Well, the same reason many of us invest - We believe the FUTURE VALUE of the company is far greater than the CURRENT COST...

To quote AOE's Nick Davies in today's The Australian: "...get as much quality acreage as we can , before it becomes of interest to everyone else..."

Clearly, in regards to ESG, there will be more 'interest' in ESG after the project 1300PJ has been certified. And more 'interest' after dewatering has finished and flow rates are publically available. More 'interest' after the marketing plans (and hence future sales) have been outlined.


The 50TCF is still sitting there in the Gunnedah Basin, waiting to be drilling, pumped, certified, and markets found.

Nothing has changed. Just the ESG price.

Y