Originally Posted by
jdg
hey drilly,
the three key short term events are these:
1. SC69 data interpretation - (hopefully a farm in?)
2. Phase II Galoc FID - for mine, cash, galoc reserves and galoc phase II is more than enough to justify the current sp (in fact, perhaps more so). this isn't just my thinking (see evaluation above...).
3. Here's the biggie - the drilling of Cinco. a very big prospect that BHP is funding. it was scheduled for april, but a rig dispute appears to have scuttled that. contractually it needs to be done before august - so not too long to wait. if that comes in, we all make a lot of money. also, BHP will certainly drill Hawkeye, at which point we're into lotto numbers. (BHP may drill Hawkeye, even if Cinco comes up with nothing - they have a two drill option.).
rig availability, the possibility of SC69 seismic not showing any goodies, and Galoc being shut in for longer than expected are possible events that may led to downward sp pressure - but overall i see so little downside and a mountain (a big mountain at that) of upside. what more could one ask for in a stock?
OEL has had its problems, and it is a little unloved (although the top 20 holders have around 70% of shares on issue, from memory) and it has flown well and truly under teh radar. that, in my view, has what has led to such a great buying opportunity.
shasta may be able to add more to this. he's on-to-it with everything OEL.
-j