Australian oil and gas exploration and production company Santos Ltd (ASX:STO) is on a mission to raise money. After a sale of 700 million Euros worth of hybrid notes last month it has priced an additional 300 million Euros worth of notes this month.
The mobilization of funds is in aid of its Gladstone liquefied natural gas (LNG) project. As per analysts the estimated cost of the project is going to between $15 to 16 billion.
On Friday Santos announced that it had received strong demand from investors in the Euro zone hybrid market for the subordinated rate notes which allowed it to raise one billion Euros. Shares in the company gained 8 cents in opening trade and a further 6 cents as the day progressed.
Santos also sold a 15% stake in the Gladstone LNG project to the French company Total, one of the world's major oil and gas groups. Total also has agreed to buy 1.5 million tonnes of LNG per year for a period of 20 years. Santos is also in negotiations with Korea Gas and is hoping to sell a 15% stake in the project to them as well. Originally Korea Gas was to acquire just 10% in the Gladstone LNG project.