9 Nov 2006drilling result▼ Bad
Third-party filing by Drillsearch: Seagoon 1, a near-field exploration well in Santos's Tintaburra block, found oil in tight rock and will be plugged and abandoned. Endeavour 15 was spudded after rig damage delays.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
9 Nov 2006business combination● Neutral
Santos responded to QGC's reserves update, saying QGC's 695.3 PJ 2P reserves are still 30% below its 1,000 PJ target and add nothing to Santos's valuation. It maintains $1.26 is fair and will await QGC's Target's Statement.
6 Nov 2006business combination● Neutral
Santos lodged a cover note attaching a letter sent to QGC shareholders on 6 November. The letter's content is not included in the text provided, so nothing further can be said.
3 Nov 2006drilling result● Neutral
Third-party filing by Drillsearch: in Santos's Tintaburra block, Mulberry 18 and Endeavour 12 (both 8 m net pay) were cased as future oil producers. Mulberry 20 had poor reservoir quality. A four-well exploration program starts. Routine drilling.
2 Nov 2006business combination● Neutral
QGC said ASIC gave it seven more days to lodge its Target's Statement so reserves certifier Netherland Sewell can finish its review. The statement will be sent by 15 November. Shareholders were again told to take no action on the Santos offer.
30 Oct 2006material agreement● Neutral
Re-release of the same announcement with a map attached: Santos signed a production sharing contract for Block 101-100/04 in Vietnam's Song Hong Basin, 55% operator, Singapore Petroleum 45%. No new information.
30 Oct 2006material agreement▲ GoodMajor
Santos signed a production sharing contract for Block 101-100/04 in Vietnam's Song Hong Basin, holding 55% as operator with Singapore Petroleum on 45%. The commitment includes one exploration well in the first three years. This adds to its Dua discovery position in Vietnam.
27 Oct 2006business combination● Neutral
QGC's chairman told shareholders to take no action on the Santos offer. QGC has hired reserves certifiers Netherland Sewell to update its reserves and says the ACCC has begun a review. Its Target's Statement is due next month. No change in position.
26 Oct 2006regulatory community update▼ BadMajor
The competition regulator (ACCC) issued a Statement of Issues on Santos's QGC bid, flagging competition concerns and market definition questions. Submissions are due 9 November, with a final decision expected 7 December. This is a regulatory hurdle for the takeover, not a block.
26 Oct 2006drilling result▲ Good
Third-party filing by Drillsearch: in Santos's Tintaburra block, Mulberry 24 (3 m net pay) and Endeavour 13 (8 m) were cased as future oil producers. Mulberry 18 and Endeavour 12 are finishing. Routine development drilling.
25 Oct 2006drilling result▲ Good
Third-party filing by Mosaic: Churchie West-1 (PL 213; Santos 16.667%) flowed a stable 3.5 million cubic feet of gas a day from the Tinowon Sandstone, to total depth 2,185 m. It is a small discovery, 1.1 km from existing Churchie facilities.
24 Oct 2006business combination● Neutral
Santos formally dispatched its Bidder's Statement and $1.26 cash per share offer for QGC, dated 24 October. The offer is scheduled to close 30 November unless extended. Price is unchanged from the 5 October bid that QGC's board has rejected.
23 Oct 2006drilling progress report● Neutral
Third-party filing by Mosaic: Churchie West-1 (Santos 16.667%) has 7 inch casing cemented at 2,135 m. Nitrogen drilling to 2,178 m is expected to start 24 October. No result yet.
19 Oct 2006drilling result▲ Good
Third-party filing by Drillsearch: in Santos's Tintaburra block, Mulberry 23 (5 m net pay) and Endeavour 16 (6 m) were cased as future oil producers. Mulberry 24 and Endeavour 13 are drilling. Routine development drilling.
19 Oct 2006regulatory community update▼ BadMajor
Santos released the Lapindo update on the Banjar Panji mud flow: the operator's cost estimate rose from US$100m to US$180m. Santos's 18% share is about A$43.7m (7.4c per share) before insurance, against its A$24.3m provision. Insurance response is uncertain.
17 Oct 2006drilling scheduled● Neutral
Third-party filing by Icon: Santos has put Stitch No.1 in ATP 626P in line for drilling in Q1 2007, the earliest slot available. This is a delay from the earlier timing. Santos earns 50% and operates once the well is drilled.
16 Oct 2006drilling progress report● Neutral
Third-party filing by Mosaic: Churchie West-1 (PL 213; Santos 16.667%) is at 2,124 m, about to run 7 inch casing before nitrogen drilling to 2,178 m. It targets the Tinowon Sandstone. No result yet.
16 Oct 2006farm in farm out agreement● Neutral
Third-party filing by Victoria Petroleum: its joint venture will pay 100% of Tomcat-1 in PPL 93 (Santos operator) to earn 50% of the Wilpinnie North block if commercial. Santos would hold 33.3% after. Santos drills in late December 2006.
12 Oct 2006drilling result▲ Good
Third-party filing by Drillsearch: in Santos's Tintaburra block, Mulberry 22 (4 m net pay) and Endeavour 19 (7 m) were cased as future oil producers. Mulberry 23 and Endeavour 16 are drilling. Routine development drilling continues.
12 Oct 2006business combination● Neutral
QGC noted Santos's valuation statements and repeated that its board unanimously rejected the $1.26 offer as 'opportunistic and patently inadequate'. It will issue a Target's Statement later. No new information.
12 Oct 2006well test result▲ GoodMajor
Dua-5X in Vietnam's Block 12E flowed 5,543 bopd and 6.76 mmscf/d of gas from the main reservoir and 247 bopd from a deeper one, no water. This confirms the 21 September discovery. Santos is 75% now, 37.5% after farm-out. Blackbird is next.
11 Oct 2006drilling progress report● Neutral
Third-party filing by Beach: Glenaire-1 sidetrack (Santos 30%) is at 3,119 m, waiting on rig repairs. Yanda-17 (Santos 55% operator) is cased and suspended after a failed first test. Baryulah-11 and Yanda-18 are drilling. No new Santos result.
11 Oct 2006business combination● Neutral
Santos challenged QGC to give credible valuation evidence for its claim that $1.26 is inadequate. It says the offer is a 24% premium to the 3 October close and double QGC's 63c rights issue price. Defends the bid; no change to terms.
10 Oct 2006business combination▼ BadMajor
QGC's board unanimously rejected Santos's $1.26 per share offer as 'opportunistic and patently inadequate'. It says QGC shares closed at $1.445 the day before, above the offer. The bid is now hostile, and a higher price may be needed.
10 Oct 2006business combination● Neutral
Santos formally lodged its Bidder's Statement for the $1.26 cash off-market offer for QGC, with the register date set at 17 October 2006. Offer and closing dates are blank in the visible text. This formalises the bid announced 5 October.
9 Oct 2006business combination● Neutral
QGC chairman Robert Bryan wrote to shareholders repeating the board's advice to take no action on Santos's unsolicited takeover offer. It adds no new facts and attaches the 5 October statement. Administrative.
9 Oct 2006drilling result▼ Bad
Third-party filing by Cue: Wortel-2 found no reservoir or significant hydrocarbons at 1,421 m and is being plugged. Cue says more appraisal drilling is needed and could happen before year end, depending on rig availability. Repeats Santos's result.
9 Oct 2006drilling result▼ BadMajor
Wortel-2 appraisal well in the Sampang PSC (Santos 40.5% operator) reached 1,421 m and found no significant hydrocarbons in the 'C' fault block, so it will be plugged. Wortel-3 is planned to test the 'B' block after Semangka-1 in the Madura Offshore PSC.
5 Oct 2006business combination● NeutralMajor
Santos, through Santos CSG Pty Ltd, is preparing a takeover offer for Queensland Gas Company, with a 50.1% minimum acceptance condition and standard no-material-adverse-change conditions. This announcement is the conditions only; the price is not in the visible text (truncated).
5 Oct 2006business combination● Neutral
QGC's board told its shareholders to take no action on Santos's takeover proposal while it evaluates the bid. It cites QGC's share price rise and its Growth Acceleration Strategy. A first sign the bid may be contested.