Santos Limited Update

Submitted by Craig Strzelecki on 12 April, 2007 - 18:53

Santos Limited (STO) has a lifted share price target of $12.90 (increased by 20 cents) by analyst Citigroup Investment Research. Santos has announced that along with ExxonMobil, OSH and Nippon Oil it has entered into a pre-FEED (Front End Engineering and Design) study into the viability of proceeding with a 5Mt to 6.5Mt/year LNG operation in the Highlands of PNG from around 2012/2013. There are two other projects competing with the ExxonMobil-led Project. There is the Kutubu Project with OSH and BG and Interoil’s PNGLNG Project. For various reasons the stockmarket analyst prefers the ExxonMobil-led Project, but recognise that project tension will ensure momentum is not lost. The analyst considers the Chinese as natural buyers and have had a high presence in the country over the last 9 months. The analyst does not expect the ExxonMobil-led project will compete against the company’s Gorgon Project (net 25%), with the latter making sales to Japan and India. In combination with the Caldita Project, Santos Limited, LNG production on a risked basis could rise from 0.25Mt/yr in 2007 towards 1.7Mt/yr by 2014.

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. Stephen Gerlach is the chairman of Santos and the managing director is John C Ellice-Flint. The energy company 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. You can use Instalment Warrants to trade STO. Check your charts and good luck with your share trading!