Originally Posted by
Rabbi
Those two are interesting picks with potentially huge upside but they both haven't been derisked as yet. MAD (maverick) has what looks like large reserves but has been having problems increasing production as wells have very small output. So the risk is whether they can increase production.
BRU (Buru )on the other hand look like they have a large Oil find at Ungani but the size of the field could be anything between .5m barrels or in the upper case 20m barrels. They have a partner in Mitsubishi and probably have the largest shale gas acreage in the Canning Basin. NSE (New Standard Energy) is not far behind in Shale gas acreage but is not a producer. The risk with BRU is that the Ungani field is not as large as they think it is.
For unconventional and shale gas exposure my pick would be BPT (Beach) with great underlying cash flow from their Cooper Basin Oil and significant shale and unconventional acreage in the Cooper Basin. SXY (Senex) is another Cooper Basin shale play I favour along with DLS (Drillsearch) who already have a farmin partner.
AWE (Australian Worldwide) has large unconventional holdings in the Perth Basin and look cheap on any metrics. They just paid out a special dividend, so are cashed up and are ready to move forward after a disastrous drilling campaign in the Taranaki Basin in 2010.
Sorry about rambling on the OEL thread. OEL thread title sums it up. Elephant hunting in the Phillipines with BHP Billiton makes it a gambling stock if you want to invest for the upcoming drill this year..
Disc: Hold BRU BPT SXY