Great article in the FFR today which near all but eliminated central getting hold of the other 50% of the M field.
The articles states that Santos has fields will be prioritised, the discussion relates more to the offshore gas fields but do discussion the onshore potential.
The article states that the Northern Australian business includes the high-potential onshore exploration venture in the McArthur basin in the Northern Territory which Santos pitches as a possible source of gas for the eastern states. However Santos have stated that would require a new pipeline that could transport NT gas south to Santos' Moomba plant in South Australia.
Let's not forget that last week Santos and now supported through this article that gas from Santos' Amadeus Basin fields in central Australia could also flow to Moomba, and suggested that such a new line was required in addition to
the small-capacity $800 million line being built by Jemena to connect the NT east to the Queensland grid.
Santos states in the article that we've got to promote that we're interested in it, the article further states that such a southern line could be "transformational" for NT gas, where
activity has been pulled back because of a moratorium on exploration of unconventional resources.
Santos speak enthusiastically in the article about the geological potential of both the McArthur and Amadeus basins, saying they both offered "multi-tcf [trillion cubic feet] scale". Santos were more upbeat about the McArthur shales and stated that it is truly analogous to some of the high-performing US shale plays offering a "fantastic opportunity for east coast supply".
In a sign of the refocus towards growth, Santos said the capex budget for both the Northern and Western Australian gas businesses would quadruple next year to $US60 million from $US15 million, So let's hope that the Amadeus basin is now adpfforded some love but places pressure on central to commit to those JV drilling requirements.
So central, your JV is singing its praises and committing to next year as being a year of expenditure in its onshore NT assists, let's hope you (central) can final place drill to ground and spud on well.
http://www.copyright link/business/...it-dares-to-reconsider-growth-20161210-gt8byd
(20min delay)