santos "template" sales agreement

That wording - template agreement for future gas sales with Santos - really caught the atttention in todays Corporate Review.

This is a really nice little company. Confirmed today production from their 30% Kiana 1 (total of 800 BOPD )and start up late last year of gas sales from Smegsy. (thus the template agreement). GOG in the only other oil and gas company, that has such a deal with Santos. Thats why they are going after the gas, so hard.

These two producing fields will generate about $3 million in revenue per quarter.

Farmouts mean no ongoing hit to the bottom line, in the form of annual depreciation. Their revenue to profit ratios will be extra high compared to other oil and gas companies, who have had to capitalise and then write down capital over time ( which is the normal way its done).

A delightful little stock.

Hangover of last capital raising (including that person who sold 50,000 each morning in the pre-open @ about 24 cents - SP now 27 cents) seems out now.