value of heron and blackwood?, page-2

Good question as to the value of heron and blackwood.

Maybe rather than looking at possible risk/discounted future earnings from oil/gas sales...a more relevant approach would be to look at the purchase terms for the adjoining Evans Shoal discovery. - sale of 40% interest from Santos to Magellan.

Here is a broker downgrading Santos for selling 40% of Evans Shoel for up to $200m. Yet no value/nothing/zilch
is placed on Meo Australian adjoining Heron and Blackwood discoveries. What does our Santos broker think of the Meo shareprice-how can you downgrade nothing?

MEO think they may have 5 Tcf of high carbon gas, verse 7.7 Tcf high carbon, 10 km away to the east at Evans Shoel.

Additionally however, MEO has previously discovered "wet" gas at Heron. In the second of two planned future wells at Heron....the company is hopeful of a "wet" gas discovery being suitable for LNG production.....as different to Evans Shoel and Blackwood methanol suitable high carbon gas.
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The Australian

Evans Shoal sale earns downgrade for Santos

Sarah-Jane Tasker
From:The Australian
March 29, 2010

SANTOS has been downgraded by Credit Suisse after selling its 40 per cent interest in the Evans Shoal gasfield for $200 million.

Analyst Andrew Williams said the price paid for Evans Shoal, off Australia's north coast, was lower than expected, leading him to downgrade his rating on the stock from neutral to underperform.