reason for santos to want esg, page-7

The comment regarding STO's weakening in share price is an interesting one. I keep an eye on what STO is up to as I see ESG's future as a part of STO (If the takeover offer comes through as a scrip deal I would have no problem holding STO shares*)

GSJBW Aussie Equities Fund is overweight STO, and they mentioned in their quarterly report it has not been great so far, specifically:

Santos (STO, overweight) – while the oil price was relatively flat during the quarter, STO underperformed due to the acquisition of a 35% interest in Eastern Star Gas, which followed the recent dilutive equity raising. Investors remain skeptical the company will be able to execute on its Coal Seam Gas to LNG project in Gladstone. However, we remain confident that STO is well positioned to deliver on its LNG ambitions and that these will generate strong returns over the long term.

See:
http://gsjbw.com.au/documents/AssetManagement/AustralianEquities/Australian_Equities_Quarterly_Investment_Commentary.pdf

The emphasis here is on 'the long term', if you are disappointed short term you need to take a chill pill, ESG may go lower still, but once ESG proves up its initial reserves (2 months) begins expanding its program (6 months) and becomes a company with assets STO can acquire with confidence their shareholders will approve (6 to 12 months) you will be rewarded for your patience.


*I don't hold any STO shares currently.