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Santos Offers The Best Leverage To A 2015 Oil Price Recovery

(Editor's Note: Investors should be mindful of the risks of transacting in securities with limited liquidity, such as STOSF. Santos Ltd's listing in Australia, STO.AX, offers stronger liquidity.)

Background

Santos (OTCPK:STOSF) is an Australian focused oil and gas E&P company with a market value of A$7.8bn (US$6.1bn) making it Australia's third largest by value. Currently, most of Santos' gas is currently sold domestically under long term contracts and the oil is sold into international markets.

Whilst historically Santos has focused mainly on the supply of gas into the south eastern states of Australia under long term domestic contracts, in recent times, the company has been focusing more on moving in the direction of selling more of its gas via LNG into the burgeoning international Asian gas market.

Santos currently has stakes in 3 significant LNG projects including a 13.5% stake in the newly producing PNG LNG (operated by Exxon) and… Read More …