Santos Investor Day

Well folks it’s out now.

Some key take aways:

Initial start up capex $1.9 to $2.2 bn based on new build FPSO and 8 to 10 wells. Still looking at 2nd hand and lease FPSO.

75 to 100 kbopd.

Go into FEED 2nd Q 2020

So we could need $440 mm debt + equity for our 20%. So worst case assuming 50% debt is a CR for circa $150 mm before FID, assuming $70mm of our current cash after allowing for exploration etc over the next 2 years.

Perhaps we get cash out of Buffalo, perhaps more debt, perhaps FPSO lease, so about the worst imho, and the worst aint that scary imho either. Still wouldn’t discount AC raising $200 mm if he can, but even that isn’t so scary now. Don’t be spooked by one misguided shorter.

EL