SA Mines and Energy Journal : June 2009
JUNE/JULY 2009 SA MINES & ENERGY JOURNAL 8 INDUSTRY DEVELOPMENTS Information or Investors, contact: Telephone: +618 8410 0611 www.stuartpetroleum.com.au ASX: STU Oliver Oilfield - Timor Sea Port Bonython Fuels Joint Venture Cooper and Eromanga Basin Angolan Joint Venture Santos share offering Oil and gas producer Santos Ltd will raise as much as $3 billion in a share offering, as it pays down debt and raises funds for a key gas project. Stocks entered a trading halt on May 11 as the company announced the deal, which comprises a two-for-five accelerated pro-rata non- renounceable entitlement at $12.50 per share, a discount to the last closing price of $17.09. Santos said $1.05 billion would be used to fund for its Papua New Guinea liquified natural gas project and $600 million will pay for redemption of its franked, unsecured, equity-listed securities. Under the offer, at least $1.65 billion will be raised in an institutional offering, which has been fully underwritten, and up to a further $1.35 billion could be raised from small investors. Santos also reiterated its guidance for calendar 2009 to maintain its full-year dividend at 42 cents per share, in line with 2008. Company CEO David Knox (left) said the funds raised would be an opportunity to invest in Santos's LNG growth strategy. "The PNG LNG project is expected to materially enhance Santos earnings once it is completed, " Mr Knox said. The honeymoon begins A ceremony in Broken Hill has heralded the start of major construction work on the state's third uranium mine. Construction of the $118 million Honeymoon Uranium Project will continue throughout the remainder of the year and into next year, with commissioning scheduled for mid-2010. Uranium One's Executive Vice-President Australia and Asia, Greg Cochran (above right), said the start of the major construction work marked a significant step forward for the company, the state and the uranium industry in Australia. SA Minister for Infrastructure Pat Conlon opened the $6 million, 2500sqm, fully enclosed storage facility, next to Berth 29. The facility forms part of a master plan developed by Flinders Ports to build a "best practice" bulk commodities precinct to cater for the future needs of the state's resources industry, as well as other bulk commodity sectors. The centrepieces of the Port Adelaide Bulk Precinct include a $5 million private rail link and interface with the national rail network, purpose-built storage facilities developed to suit to specific requirements of customers, and improved ancillary facilities. "This major project is all about building for the future export/import needs of the state -- in this instance, primarily our resources sector, " Flinders Ports' Chief Executive Officer Vincent Tremaine said. "We are extremely optimistic about the future of this sector in South Australia. " The new storage facility has been constructed to store zinc concentrates from Terramin Australia's Angas mine at Strathalbyn. $50m port facility opens The export of South Australia's bulk commodities received a boost with the official opening of the first phase of a $50 million redevelopment of the inner harbour of Port Adelaide.
April May 2009