What happened to the Santos share price?
Shares of Santos Ltd [ASX:STO] have been trading sideways for much of 2017. However, this could all change with an upcoming ‘uber-project’ that could see a potential reversal of their five-year-long 70% fall in the stock price.
What’s going on with Santos’ share price?
You only need to glance back to August 2014 to see the stock price of Santos hovering up around the $15-dollar mark. And you only need to glance back to January 2016 to see its incredible fall from grace, all the way back to under $3.00 a share.
From its 2016 low, the Santos share price is now edging closer to $4.00. That’s a handy 33% return in just over a year. But it’s a long way away from the halcyon days of 2013 and 2014.
What now for Santos?
The company is languishing far from its previous highs. While it’s up from its early-2016 lows, it’s been a rollercoaster ride along the way.
But now, Santos is proposing a mega coal-seam-gas project in Narrabri, New South Wales. On Tuesday, Santos released a 7,000-page environmental impact study (EIS) on the uber-project. It will potentially contain 850 wells, supply as much as half the gas needs for the entire state, and generate 1,300 jobs in construction (and another 200 ongoing jobs).
The project is set to cover around 950 square kilometres — that’s an area bigger than all of Singapore. Santos also aims to extract the gas without reverting to fracking.
For now, the EIS is open for public viewing and debate. It’s yet to be given the greenlight from the government, but it could become one of the most hotly-debated gas projects in Australia in 2017.
If Santos does get the greenlight for the project, it could see the stock price turn around and head higher. Of course, that all depends on whether or not this project gets off the ground. It’s already off to a rocky start, with arguments coming from all sides of government and the public. So hold on and watch out. This could be the most significant project Santos has ever worked on — and it could see the stock fly…or tumble further.
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