The Mahalo joint venture involves 40% Comet Ridge and 30% each for Santos and APLNG.
At time of writing, Santos’ share price is trading at $6.92, down 0.22%. Since January 2019, shares of the energy company have risen by roughly 18%.
The Mahalo project is also waiting on an important Petroleum Lease Application, where the Initial Development Plan (IPD) is needed by the Queensland government.
Santos’ share price Rises, on Mahalo Development update
Santos’ Mahalo Joint Venture (MJV) is working towards submitting its IPD for the Petroleum Lease Application Submission to the Australian government.
The MJV has already come to an agreement on many core inputs and is set to finalise others during this month.
All companies in the Mahalo Gas Project are still deciding on the most economically efficient development, including ‘well design and locations, plant location, export pipeline and the work associated in preparing for government applications’.
Managing Director of Comet Ridge, Tor McCaul, commented on the Mahalo Gas Project:
‘It is great to see the Mahalo Gas Project taking shape and to see the MJV partners working together on the Initial Development Plan. Given Comet Ridge’s time working on the asset and the last couple of years as Exploration Agent for Santos, our technical understanding of the field has helped shape its development. It is comet’s view that FID will be taken by June 2020 and given the modular approach to the development, first gas to market should be achieved before the end of 2021.’
Santos’ share price outlook
When predicting a company’s long life value, it takes a little more than seeing whether a company’s shares rise or fall. If it was that easy, everyone could be a top investor.
An effective investor will continue to do their own research and follow a company’s journey to success, or alternatively, see when it’s time to sell up shop.
But when you’re dealing with a company like Santos, you can look back through its trading history. Yes, shares have continued to gradually and consistently rise this year. But what else is it doing?
After suffering a dip in shares in December last year, Santos has remained focussed on gaining environmental greenlights for its sustained development.
This is an issue becoming more favourable to energy companies amid the great climate change debates and geopolitical risk. And in these times, oil and gold assets react differently, and it’s why we here at money morning believe you should be watching gold carefully.
For Money Morning