I have visited this mudflow - and was in the area on Wednesday...

I have visited this mudflow - and was in the area on Wednesday when the explosion happened - but thankfully had left before the event.

I made some comments a year ago on the Jeruk field and warned that it was not a sweet a find as perhaps it might appear. Todays announcement confirms that.

Pure scuttlebut - but I heard that it aint going to get any better. Reserves are down but production issues also abound. Treat Santos with caution.

As far as the mud disaster - it is only going to get worse. Wet season will kick in right about now and those 7m levies are going to leak for sure and the main East Java highway will be closed. If they are unlucky a levy might burst - then you are talking casualties. They are also trying to pump the sh*te into a nearby river. There will almost certainly be claims from downstream prawn farms as there fields are made toxic.

Santos are niave in announcing they have made a contingency to cover costs. This is not thier fault - it is the fault of the contract driller - Lapindo (owned by govt minister - Aburizal Bakri). By publicly stating they have this reserve, in Java speak it is tantamount to an admission of liability and defacto guilt. Privately they should make a contingency - publicly they shouild be pointing the finger squarely at Lapindo.

My thoughts only - Im sure Santos mngt are no fools and got a grip on this...but still.

good luck to holders