Santos (STO) Shares

Santos has a Neutral 2 recommendation and a share price target of $12.21 by share analyst UBS. On the other hand, Macquarie Research Equities (MRE) have given Santos a share price target of $11.01. Santos had bid for Queensland Gas Company (QGC ) for $606m or $1.26 per share (for about 480.8 million shares). QGC is a listed coal seam gas company. The bid is based on the condisiton that Santos will obtain at least 50.1 percent of shares on issue. The company recently became a producer with its first production from its Berwyndale South gas field (Surat Basin, Qld) in early May, 2006. The offer values QGC at A$606m (based on about 480.8m shares), and is conditional on acquiring at least 50.1% of shares on issue. UBS notes that: "As at 30 June 2006, QGC had proven and probable (2P) coal seam gas reserves of 422.7Pj in the Undulla Nose structure, which hosts the Berwyndale South, Lauren and Argyle gas fields, and net debt of $30m. QGC had announced plans to increase its share of 2P reserves in the Undulla Nose area to around 1000Pj by mid 2007, at a finding cost of about 3 cents per gigajoule." UBS believes that Santos "may need to sweeten the bid for it to be successful, particularly given the potential for QGC to significantly increase gas reserves within 12 months."

Santos Limited is listed on the Australian Stock Exchange (ASX) under stock code STO. You can view their investor website here. STO was listed on the ASX on 1 October, 1954. Santos is involved in gas and petroleum exploration and the production, treatment and marketing of natural gas, crude oil, condensate, naphtha and liquid petroleum gas; transportation by pipeline of crude oil. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!