GDM - tell me about it :(
Cairns Hill anybody? :mad:
40c would be nice, but im holding for now
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Only one part of the comprehensive report by Euroz (my thanks to the contributor tricha) i find misleading and that is this referring to Cuyana Basin in Argentina
There is enthusism but to suggest a billion barrels is dumb.http://www.clicksmilies.com/s1106/te...smiley-037.gifQuote:
A discovery of 1 billion barrels would translate to multiples of OEL’s current share price.
I don't think we'll see OEL at 30c again for a while, unless there is a large correction on the ASX. Did a bit of number crunching, and even after dilution there is great upside.
It's best to think of this acquisition as a hedge against even further dilution later on down the line. Calauit seems to keep getting pushed back, so it was in the company's best interest to secure a piece of a large producing asset which they've done in fine style. :)
Nice quarterly, yet again highlighting the new acquistion...;)
Highlights:
5 drill program in Turkey in Dec for potential 30+BCF Gas targets (OEL35%)
Galoc Oil field (Phillipines) OEL share = Net 4.2mmbo, or 3300bopd (min $A300k per day!)
Cash at end of quarter - $11.2m
Next Quarter Expenditure - $4.5m
Would like to think we won't see 30c again, but am not so sure...
Bring on the Argentine Monster i say :eek:
shasta and friends-
i was impressed with the quarterly and only noticed this company due to this thread. want to jump in with a significant trade of my ZFX holding into OEL, however, just wanted some general opinions and thoughts.
should i wait a little for dilution? or will the phillipines data etc send this one thru the roof.
any ideas?
Like the rest of us, grab your lotto ticket & await the results!
Turkey has some small but meaningful gas revenue on the horizon
Phillipines has the new oil field online Apr & some elephants in the deeper waters waiting for a major to farm in for...
Argentina has a monster target lurking & we should find out if we have the 41% of it & permission to drill during Decemeber (for drilling 2008).
OEL may well drift between 30 & 40c for a while yet, who knows?
If we do see 30c, i'll be buying plenty more. I got in at an average just under 20c, and the fundamentals just keep improving. In my books, dilution to acquire an asset that will be producing in 6 months and paid back in around 18 months looks like good business for a emerging oiler. OEL is HEAVILY leveraged to success even after dilution, and once Galoc is up and pumping will provide a strong base to grow from.
I remember reading somewhere that OEL are exposed to around 11 drills in the coming 12 months. I can almost guarantee you that we won't be sitting in the 30-40c region once Galoc starts to pump, Argentina is drilled, farmdowns occur & when Calauit starts to progress. As you can probably tell i'm very bullish on OEL's prospects for the next couple of years, all that is needed is some patience :P
Totally agree, OEL is about positioning oneself for the 2008 drilling campaign.
BOW & TEX should provide short term spikes in the meantime.
I think the Euroz broker report is a tad disappointing having made no real effort to value (even on an unrisked/risked basis) the Argentinian permit & the deep water Phillipines acreage.
I believe they have vastly undervalued the "potential" OEL has...
I calculate the "Intrinsic Value" well above there upper valuation, even applying a large discount rate to account for risk.
OEL is on accummulate for me:D