This oil and gas company has been the subject of more loathing over its Moomba fire. The latest gossip is that Santos's business interruption insurance is null and void. We don't know what the policy says but we'd be very surprised if it was of no value given management's lack of disclosure on this material issue. In a tie up with one of the Novus bid vehicles, Sunov Petroleum, Santos has entered into an agreement to purchase Novus' Indonesian and Cooper Basin assets for a total of $US192m, should the deal go through. It looks opportunistic - and we like that. The latest results show things are fine at Santos - in the resources game, cash flow is king and Santos has plenty of the stuff. Production will be down this year but for long term investors, in our view, any price weakness presents an opportunity. The shares are little changed since issue 146/Mar 04 (LONG TERM BUY-$6.14). LONG TERM BUY.