oh dear, s & p negative outlook for sto , page-7

77,

Misleading ? - I know you are having a Tug

Santos is under S&P "negative outlook" - What is misleading about that?

It is more EVIDENCE that STO doesnt have the capacity via the debt markets or via its own share printing press to acquire the 80% of ESG it doesnt directly own

STO is conservative. It has done enough with its $500M to Tie up a lot of Gas for Later-On. It already would have significant commitments to support its share of the Narrabri CSG JV costs. It makes provisions.


If the GLNG JV members can be convinced to buy out ESG and STO leaving STO with a 30% overall (=GLNG) stake then STO would probably get a rebate out of it. But STO has already assured the members and the Public that it has enough gas for Trains 1,2. The Later-On Trains have not been mentioned yet, which is where ESG probably fits on the Santos Project Conveyor.

As you point out there are many QLD hopefuls with Gas to sell.


The STO purchase back in 2009 seemed opportunistic with all the other predators around. STO was taking its own hostage. While STO selling out may seem far fetched they may have their price. Marubeni may be able to prise off one of the hands tightly holding their stake. If the Left Hand can be freed then the Right Hand is lost.

I really dont like STO being involved with ESG in the Passive , careless way it is at present. ESG has done a lot to make STO take notice but they just ignore ESG. What sort of dance partner is that ? We as ESG shareholders would be better off if STO just left us alone. BUT Isnt that what they are doing already ? YES it is - STO is letting ESG go forth and reach its commercial potential. ESG so far has got its own sole-risk projects , the ERM Power MOU and The Newcastle Electric LNG. Has STO been concerned about this - NO?

Doesnt the STO Narrabri share of 35% ring a Bell ? What about all of the STO Gunnedah acreage. Maybe STO is working up to vend the whole lot , its 35% share of Narrabri plus its own acreage into the "GLNG Later-On" for a Northern pipe.

STO is acting like a torturer. I would rather ESG break free from the Santos dead hand and get an Active major strategic partner like Marubeni. I am sure our ESG management are working towards that end. They have not surrendered to Santos and they are trying to create a competitive auction for our Gas Resources so as to increase Shareholder Wealth.

Mr David John Wissler Knox may tell a good story in his accented english but we at ESG can see through the strategic utterances and know that he has no current active strategy that involves ESG. He has simply warehoused us and we dont like it at all. ESG should and must take advantage of this passivity and go forth and set its own course to a better place.



Cheers