sothebys for csg?

its almost looks like an auction now thanks to marubenis entry into the fray.

Santos' "measures" for capital efficiency might have to be put to the side if the want to underpin their second and future trains. While Santos appears to have far more time up their sleeve to mull over ESG, the loss of holding in PEL238 is both a NEAR TERM threat to STO and their ambitions (whatever they may be) and

CAPITAL EFFICIENCY is just a polite way of Santos saying, this is all we are willing to offer you.

NARRABRI CSG PROJECT AND LNGN MOU is just a polite way of ESG saying this is what others are willing to value us at.


Love the banter, but the game is on and I see a win win from here. How I am going to place my feet wrong based on the following:

#maturing gas market in NSW

#looming privitisation of power

#favourable energy source-gas in a carbon market

#multiple future gas power stations planned in NSW

#substantial resource upside

#very commercial flow rates

#small scale consolidation in acreage adjacent to ESGs

#future action which likely indicates:

a) a suitable offer will be made on ESG

b) our likely predator is unable to match a future JV and we still walk away with substantial capital and a JV partner


The future is bright, but some downside still exists:

#the feasibility study, which is what is really driving all of this, comes out in the negative with too-high ongoing opex.

#our belief that ESG are masquerading as a corporate genious when they actually have nothing-no ann on projects

The next effective step I would like to see before Narrabri CSG Project is sold off, is Marubeni or the like take a stake in ESG - that would really put the cat amoungst the pidgeons. But reading Marubenis's ann on the MOU, does not seem to indicate this. It clearly pitches the feasibility study as being the pre-cursor to further action. The rhetoric is very different and worth a read.

And yet, we continue to see ESGs share price fall. Very interesting that isnt it. Not shorts, probably just some warehoused stock being dumped in the face of demand.

Cheers,

SF