Santos Limited (STO) Update

Submitted by Craig Strzelecki on 20 April, 2007 - 18:14

Santos Limited (STO) has a maintained Neutral 2 broker call and a $10.25 share price target from sharemarket analyst UBS. The analyst has examined the company's March quarter preview and the M-E & Legendre production in Woodside's MQ07 report. Woodside's March quarter production report (released yesterday) included oil production for Mutineer-Exeter (M-E) and Legendre. As a consequence, the analyst has increased their March quarter production forecast for Santos by 0.125 mmboe to 14.7 mmboe. In addition, as it is currently producing around 46,000 bopd, they have raised their forecast M-E production profile. The analyst have increased our total Santos Limited production forecasts (in mmboe’s) by 1.0% to 60.8 (‘07E), 0.5% to 60.2 (‘08E), and 0.2% to 62.3 (‘09E). Their EPS forecasts have increased by 5.8% (‘07E), 3.3% (‘08E) and 1.7% (09E). In their view, the Woodside production report was positive for Santos, as it showed M-E production held up extremely well, despite the disruptions due to cyclones. M-E oil sells at a small premium to the Tapis oil price, and is currently the largest contributor to Santos (STO) oil production. Their Santos Limited (STO) share price target is A$10.25 based on their NAV estimate, plus new potential project developments / expansions.

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!

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