Past year: ▲ 35%(6.17 – 8.62 AUD)
Each one in plain English, with the numbers worked through for a shareholder.
22 Sept 2011business combination● Neutral
The Federal Court approved ESG holding shareholder meetings on Santos's takeover. The vote is set for 28 October 2011, with a separate vote on Santos buying TRUenergy's ESG shares. This moves the scheme forward after the delayed first hearing.
22 Sept 2011investor presentation● Neutral
Hong Kong investor presentation repeats known facts: half-year profit A$504m, A$6.7bn funding capacity, GLNG 30% with first LNG 2015, 2P reserves 1,445 mmboe. No new announcements.
21 Sept 2011material agreement▲ Good
Hastings says Epic's 15-year gas transmission agreement with Santos is now unconditional, giving 147 TJ/day of firm South West Queensland Pipeline capacity from 2015. The lender consent and GLNG second-train decision conditions are met, resolving the pending financier consent.
16 Sept 2011asset acquisition disposition● NeutralMajor
Magellan says it signed an asset swap with Santos: Santos hands over its 48% of Palm Valley and 66% of Dingo for Magellan's 35% of Mereenie, plus A$25m cash to Magellan. Completes the Amadeus Basin rationalisation Santos had been discussing; Santos gets Mereenie.
12 Sept 2011dividend declaration● Neutral
Santos set the price for shares issued under its dividend reinvestment plan at A$11.3241 for the 15c interim dividend, payable 30 September 2011. Administrative follow-up to the half-year result.
7 Sept 2011drilling progress report● Neutral
Beach's August report is mostly its own wells. In the Santos-operated Cooper Basin, Tindilpie-12 and Nephrite South-7 were cased as future Patchawarra gas producers, and Nephrite South-9 is drilling. Continues Cooper gas development drilling.
5 Sept 2011business combination● Neutral
ESG lodged the scheme booklet with ASIC and says the first court hearing is now expected by end-September, about two weeks later than first planned. The shareholder meeting date will be announced later. ESG still aims to commit to LNG Newcastle around end-2011.
1 Sept 2011drilling result▼ Bad
Sampdoria-1 oil exploration well in ATP 752P, operated by Santos, was plugged and abandoned at 1,823m after only shows and a mud-cut water recovery. A dry hole for the Cooper Basin exploration programme. Senex (22.75%) participated at no cost.
26 Aug 2011contract award▲ GoodMajor
Transfield Services says Santos picked it as preferred contractor for a Cooper and Eromanga construction and maintenance contract worth about A$100m a year. It runs five years plus three one-year extensions, subject to conditions. This is separate from and follows the A$102m Easternwell well servicing deal.
24 Aug 2011material agreement▲ Good
Senex agrees key terms with Santos, operator of the Charo field, for the Snatcher oil pipeline to Moomba. The Santos-led Cooper Basin parties will upgrade the Charo-Tirrawarra pipeline to six inch, with a A$4.1m prepayment from the Snatcher partners. Completion is expected by March 2012; documentation is not yet finished.
22 Aug 2011business combination● Neutral
ESG's chairman tells shareholders the Santos scheme exchange ratio rises to 0.6881 Santos shares per 10 ESG shares after Santos's 15c dividend; still about A$0.90 and A$924m. A new reserves report is delayed for lack of data, and PEL 238 renewal is pending.
19 Aug 2011half year report▲ Good
Media release on the half-year: net profit A$504m (up 155%), of which A$246m is asset-sale profit; underlying A$236m. Cash is A$3.6bn and funding capacity A$6.7bn. Chim Sao first oil is due September 2011; Kipper first gas is deferred.
19 Aug 2011joint venture update● Neutral
Beach and Senex will build Western Flank oil flowlines at about A$40m total. The Lycium-to-Moomba trunkline needs approval from the South Australian Cooper Basin JV, in which Santos holds about 67%. Commissioning is expected around June 2012. Partner announcement, not Santos's.
19 Aug 2011investor presentation● Neutral
Results slides repeat the half-year figures: net profit A$504m, production 22.9 mmboe, 2011 guidance unchanged at 47-50 mmboe, funding capacity A$6.7bn. Chim Sao, Reindeer and Wortel are on track for second-half start-up. No new substance.
19 Aug 2011half year report▲ GoodMajor
For the half-year to June 2011, Santos reported net profit of A$504m (up 155%) and underlying profit of A$236m (up 12%). Production was 22.9 mmboe, down 5%, and the interim dividend was 15 cents, fully franked.
4 Aug 2011other● Neutral
CEO David Knox's speech to the American Chamber of Commerce defends coal seam gas on farming and water concerns and promotes gas as a lower-emission fuel. The extract shows no new company figures or results.
3 Aug 2011drilling progress report▲ Good
Beach's July report is mostly its own wells. In Santos-operated Cooper Basin, Tindilpie-11 and Nephrite South-8 were cased as future gas producers, and Zeus-2 and -3 appraisal wells hit oil (Beach 30%). Continues earlier Cooper development drilling.
29 July 2011material agreement termination● Neutral
Magellan's US filing formalises a 21 July Release Agreement ending the Evans Shoal sale deed. Magellan gets back its A$10m deposit plus interest, and both sides release all claims. Santos keeps its 40% of Evans Shoal. Repeats the 26 July press release.
26 July 2011asset acquisition disposition● Neutral
Magellan says it and Santos have settled the failed Evans Shoal sale: A$10m of the deposit is returned to Magellan and the sale deed is terminated. This partly resolves the earlier dispute over Santos's claimed A$15m. Talks continue on rationalising Amadeus Basin interests.
20 July 2011contract award● Neutral
Transfield's Easternwell signed a letter of intent for well servicing contracts with Santos worth A$102m base, using five rigs in the Cooper Basin and coal seam gas. It extends an agreement due to expire in November. Supplier announcement; not yet a final contract.
19 July 2011joint venture update● Neutral
Partner Comet Ridge (25% of PEL 427, 40% of PEL 428, operated by ESG) says Santos's ESG purchase should help commercialise its Gunnedah gas. It expects technical work to continue as business as usual. Not a Santos announcement.
18 July 2011business combination▲ GoodMajor
Santos agrees to buy the 79% of Eastern Star Gas it does not own, via a scheme paying 0.06803 Santos shares per ESG share: A$0.90 a share, A$924m. It will sell 20% of ESG's permits to TRUenergy for A$284m. Completion is expected by end-October. Follows its existing 35% PEL 238 stake.
18 July 2011business combination▲ Good
ESG's board unanimously recommends Santos's scheme offer of 0.6803 Santos shares per 10 ESG shares, about A$0.90 a share and A$924m, a 51% premium. It is subject to an independent expert, shareholder and court approval, with a 1% break fee. Vote is expected in October.
18 July 2011investor presentation▲ Good
Santos's slides on the ESG deal repeat the terms: A$924m all-scrip, 20% sale to TRUenergy for A$284m. New detail: Gunnedah 2P reserves would reach 1,216 PJ and 3P 2,238 PJ, and the TRUenergy cash is said to cover Gunnedah capex to end-2014.
18 July 2011other● Neutral
Cover note filing the Scheme Implementation Deed for the ESG acquisition with the ASX. The extract shows only the contents page, with no new figures beyond the deal already announced.
6 July 2011drilling progress report● Neutral
Beach's June report is mostly its own wells. In the Santos-operated Cooper Basin, Moomba-186 and -187 were cased as future Toolachee gas producers, and Nephrite South-6 was suspended as a Patchawarra gas producer. Wandilo South-1 was plugged and abandoned as dry.
4 July 2011drilling scheduled● Neutral
Partner ESG says a drilling rig returns to Narrabri later this month to start its 2011-12 programme, including a first stacked lateral production pilot. Santos holds 35% of PEL 238. Timing may change with approvals; monthly reports resume once drilling starts.
17 June 2011joint venture update▼ Bad
Magellan confirms the Evans Shoal sale will not close and disputes Santos's claim to keep the A$15m deposit, reserving its rights against Santos. The two are in talks to resolve it and explore rationalising joint Amadeus and Bonaparte interests. Continues the failed sale.
15 June 2011contract award● Neutral
Ausdrill's subsidiary won a Santos contract for coal seam gas drilling in the Fairview area, worth about A$15m over up to 15 months. It is a supplier announcement; a small contract for Santos's Queensland CSG operations.
10 June 2011farm in farm out completion▲ Good
Santos confirms it has acquired 75% and operatorship of WA-323-P and WA-330-P, hosting the Winchester prospect, which it says is geologically similar to Zola. 3D seismic is planned later in 2011; a well may be brought forward to possibly end of 2012.
