AWE on the Move

[upside_umop]

Its hard to tell Geezy, I havent done the calculations but you'd need to take into account depreciation rates on their assets, and I simply can't be bothered spending that time calculating when the annual report is due out soon! They took over an extra 15% of bass gas for well above book value...which has got to be positive. $80 million for 15% if i remember rightly. That implies a discounted cashflows to them of >80/.15*.575=$300m (unless they have to impair the asset this year!).

There is some interesting accounting reading in their notes to the financial statements last year. Doesn't look like ARC's impairment charge will get written back up though.

[geezy]

Looks like AWE might be looking at a break out and rally back up to 2.50?

[macduffy]

Looks like AWE might be looking at a break out and rally back up to 2.50?

$2.50 might be a bit optimistic this time round. But having loaded up a bit in the $1.60 - $1.64 range, I'd settle for something north of $2.00.

[geezy]

well done macduffy, yes 2.50 does sound overly optimistic.

A new well on the cards or oil price above 80?

[Dr_Who]

Do AWE have any hedging or are their oil sales based on market price?

[troyvdh]

...whats going on...on a down day ... AWE of the top 25 dollar value trades is the highest gainer ...5.9 %,,,,,...cell phones perhaps....

i aint complaining...

...well ...AWE was in the top 25 ....still it appears the biggest dollar gainer by far....

[macduffy]

Do AWE have any hedging or are their oil sales based on market price?

I can't find the reference but I'm fairly sure that AWE's Tui oil is sold on a Tapis related basis, ie fluctuates with the market.

Almost half of their boe output last quarter was gas from the Bass Gas and Casino fields. This is apparently sold under long term contracts, based in AUD but with CPI escalator provisions.

[p2r]

Tuatara getting filled with concrete. Oh well no Tui found in Marlborough Sounds to go with the savy.
Still production is ramping up for AWE (see latest presentation) and any dips not too drastic, more of a buying opportunity and plenty of buyers so I am positive about this company going forward.

[geezy]

hammered with todays loss result.

[ELYOB]

Looks like a shake up of the company is taking place . Could have been better run . One doesnt have to drill necessarily these days . You can buy it cheaper with certainty . As such with ADI....