Santos actually has a vested interest in CIg although peanuts now buts till they own over 100mil shares. After all the seismic data they would have interpretated im sure they would have found something interesting to atleast have a return on risk. If they spend 15mil drilling for next 6-8 months and they find atleast 10mil barrels of oil on just one permit then they would have retuned all their money plus more. Santos has drilled in the area and unless they try and tap new reserves santos is seeing a diminishing stock pile of oil inventory.
I would say SANTOS would be committed to this deal just for the shear fact to spend 15mil more on a the most prospective permits and use the finds and cash flow.
It would be very hard for Santos to walk away at this point in time unless they were 100% sure there was nothing down there at all. Otherwise they would view the risk as a worthwhile venture cosnidering how cheap it is to drill these days compared to 2 years ago!!!!!!
Good luck all i wait for the news most likely tonight or Monday or else the company is breaching the corporations act of listing on ASX and providing the makret with sensitive information they are priveleged to!!!!!!!!!!!
CIG Price at posting:
1.0¢ Sentiment: None Disclosure: Not Held