Santos CSG Pty Ltd., a subsidiary of Santos Ltd., Adelaide, Australia, (Nasdaq: STOSY, Australia: STO) plans to continue with its unsolicited bid to acquire Queensland Gas Co. Ltd., Brisbane, Australia, (Australia: QGC) for A$1.26 per share in a deal valued at US$451.5 million (A$606 million). Queensland Gas had previously rejected the offer as "opportunistic and patently inadequate," but Santos contends the deal provides a significant premium above the share price and represents a high reserves valuation multiple for Queensland Gas. Santos also reports that Queensland Gas has not released any further news regarding the company's value since the offer, and a future target statement from Queensland Gas should confirm that value the Santos' is offering for the company. Queensland Gas' interests and petroleum leases are in the Surat Basin in southern Queensland, and the company has a current focus in the Berwyndale South Field. The company also has pilot wells in the Argyle East prospect 25 kilometers southwest of Chinchilla, Australia. Reserves are 142.6 billion cubic feet of gas proved, 258.7 billion probable, and 1.3 trillion possible for total reserves of 1.7 trillion cubic feet of gas.

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