AWE on the Move

[Huang Chung]

Think there is a bit of a difference between a producer like AWE, with a suite of exploration and development opportunities, and an outright speccie explorer, where the exploration outcome for the company tends to be quite binary.

[tricha]

Think there is a bit of a difference between a producer like AWE, with a suite of exploration and development opportunities, and an outright speccie explorer, where the exploration outcome for the company tends to be quite binary.

I had them before when Tui was in full swing and they lost their way.

I bought back today on all the great news of late. Lets hope they do not lose their way again when the oil flow picks up.
Like TAP, it makes me wonder why a major does not snaffle them, at these extraordinary low prices.

Going forward they should be able to produce 5 million barrels a day for many, many years.
They have great reserves and their major project has been substantial de-risked.

A bargain!

[tricha]

I had them before when Tui was in full swing and they lost their way.

I bought back today on all the great news of late. Lets hope they do not lose their way again when the oil flow picks up.
Like TAP, it makes me wonder why a major does not snaffle them, at these extraordinary low prices.

Going forward they should be able to produce 5 million barrels a day for many, many years.
They have great reserves and their major project has been substantial de-risked.

A bargain!

I do have 1 concern and that is the shale gas, from my readings, it is a big Ponzi
scheme , except for a few sweet spots.
There is an article from Peter Strauns stockanalysis which high lights this as applying to AWE, ????

[Huang Chung]

I have a sneaking suspicion that you might be a bit right there Tricha.

I'm happy that AWE are primarily a conventional oil play, with a little unconventional 'spice' thrown in for good measure. One of the most telling things (the way I interpreted it at least) from yesterday's BRR presentation is the seemingly little emphasis on the unconventional Arrowsmith well in the Perth Basin. Bigger fish to fry elsewhere it seems.

[macduffy]

Macquaries have confirmed their "Outperform" on AWE with a DCF valuation of $2.91 and 12 month target SP of $2.50.

http://www.macquarie.com.au/dafiles/...=ODU2OTg5NzgS1

[soulman]

Macquaries have confirmed their "Outperform" on AWE with a DCF valuation of $2.91 and 12 month target SP of $2.50.

http://www.macquarie.com.au/dafiles/...=ODU2OTg5NzgS1

All this fuss and we have PPP trading at such a discount to valuation. I will read AWE tonight to form an opinion.

[tricha]

All this fuss and we have PPP trading at such a discount to valuation. I will read AWE tonight to form an opinion.

PPP would be in my opinion, be much better of, buying shares in other oilers that are undervalued.

the likes of WPL, AWE, TAP to to name a few and get rid of most costs ,risks and overheads.

I am interested to see your opinion Soulman, are they cheap or am I on the wrong boat?

[soulman]

PPP would be in my opinion, be much better of, buying shares in other oilers that are undervalued.

the likes of WPL, AWE, TAP to to name a few and get rid of most costs ,risks and overheads.

I am interested to see your opinion Soulman, are they cheap or am I on the wrong boat?

Hard to say Tricha. The same with DLS and BPT. Although I won't buy them compares to say PPP and SXY. As you can see, I preferred cashed up producers than the one with debt.

As with the last time I reco PAN as a dog back in early Sept 2012, the shares rally up from 45 cents to 63 cents in a month and then subsequently dip to 24.5 cents now. I almost look like a fool.

[tricha]

Hard to say Tricha. The same with DLS and BPT. Although I won't buy them compares to say PPP and SXY. As you can see, I preferred cashed up producers than the one with debt.

As with the last time I reco PAN as a dog back in early Sept 2012, the shares rally up from 45 cents to 63 cents in a month and then subsequently dip to 24.5 cents now. I almost look like a fool.

Well re-reading this, it looks good on paper Soulman. The good times will take a couple of years.
An extra 100 million US will be a huge help for the future, thanks to the Santos buy in. Santos also take control which is a good thing, as the have the expertise.
But then there is sovereign risk?


http://www.stocknessmonster.com/news...E=ASX&N=753581

[tricha]

Well re-reading this, it looks good on paper Soulman. The good times will take a couple of years.
An extra 100 million US will be a huge help for the future, thanks to the Santos buy in. Santos also take control which is a good thing, as the have the expertise.
But then there is sovereign risk?


http://www.stocknessmonster.com/news...E=ASX&N=753581

AWE are now at an even lower price, today was a good day to top up.
They have the oil.