Vocus Group Ltd

VOC Details
 
Recently, Vocus Group Limited (ASX: VOC) has received an indicative and non-binding proposal from Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, KKR) to acquire 100% of the shares in Vocus (on a fully diluted basis) at a price of $3.50 cash per shar. The proposal is based on a few assumptions including, no dividends to be paid or capital returns undertaken before implementation of the scheme, and it will not have less than a normalized level of working capital at completion. Further, net debt will not be greater than $1.1 billion, while EBITDA should be in-line with guidance of $365 million to $375 million for the twelve months ending 30 June and not driven by any material one-time or abnormal items. We maintain a “Hold” recommendation on the stock at the current price of $3.45


VOC Daily chart; (Source: Thomson Reuters) 

Santos Ltd

STO Details
 
Cooper and Eromanga basins June update: A two-well gas development campaign was completed at South Australian Gas - Cooper Basin JV in the Dullingari and Dullingari North fields, located approximately 65 kilometres east of the Moomba processing facility. The primary objective was the Patchawarra Formation, with the Toolachee and Epsilon formations providing secondary targets. The second well of the campaign, Dullingari-42 DW1, was side-tracked from the nonproducing Dullingari-42 well. Dullingari-42 DW1 intersected approximately 62 meters of net gas pay in the Patchawarra Formation. The well was cased and suspended as a future producer.Further review of results will be undertaken to determine if directional drilling from existing non-producing wells can be applied to other development opportunities across the Cooper Basin.
 
A six-well near-field gas exploration and appraisal campaign progressed at Queensland Gas JV in southwest Queensland. The fourth and fifth wells of the campaign, Cougar-1 and Snefru-1, are located within the Windorah Trough and follow successful exploration and infrastructure installations in the region in 2016. Both wells targeted the Toolachee Formation as a primary objective and the Patchawarra Formation and Nappamerri Group as secondary objectives. Cougar-1 was plugged and abandoned due to lack of commercial pay and suspended as a future producer. We maintain a “Buy” rating at the current market price of $2.91
 

STO Daily chart; (Source: Thomson Reuters)

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