tricha-
Hi Shrewd

1)Whats was Cue's cash backing per share last quarter ??? I think it will answer your question.

2)What will it be this quarter, we shall see this week most likely.???

3)Problems for CUE is the oil price is so low that last quarters oil sales in $ will be extremely low.

4)Multiply that by more money required for Maari because of long delays and interest payments.

5)And no guarantee of it producing as per company statement, Otto and AED testify to that. Tui says otherwise

6)My way of thinking is CUE is a gambling stock, with lots of nice juicy things happening, which could multiply its price, but and we all know the buts.

Happy hunting Shrewd.!
wow tricha... Im glad I asked you to explain your statement... we have a lot to discuss.......
first of all...

1)cues cash backing per share?...
well, the last cashflow update was for the quarter ended september 30th 2008...
here are the numbers from that report...
cash 17.459 million dollars... shares 628million...
cash per share of 2.8 cents...
not bad with a share price of 13.5cents...

2)what will it be this week?
Yes im very interested to see...
One thing though... CUE had massive exploration expenditure in the quarter ended 30th sept because of drilling expenditure on Cobra... which took forever... (successful discovery, money well spent)....
So in that quarter exploration costs of $7.941 million... and for the quarter just been, that was expected to drop to $2.6million dollars...
Development costs were set to increase 2.8million (Maari coming online)...
Holding all other expenses equal, we have a net decrease of cash costs of 2.51 million, (on exploration and development)...

This will help offset some of what you are saying in 3)

3)even if CUE earnt 10million dollars of revenues per quarter (40million per year), is still pretty ddaaamnn good for a company valued at 85million...
considering the fact that CUE's main wealth and leverage is held in its portfolio of proven assets... and developing projects...

4)Rising development costs are just apart of investing in this sector... its norm for every single company... Projects never come in under budget...
delays are norm in this industry.... Big assets, and higher discount rates of projects, makes up for all of that (and more) when we get the projects up and running (fact)... This is why the oil sector can have great returns...
I dont think this is a valid explanation tricha...
did tui have cost overruns? what about Kupe?

5)When I look back at AED in particular, and OEL... I realise that these companies were first time producers... and either had no JV partners, or JV partners who did not have the technical expertise to fix problems as they arose...

we are operating with the Todds, and OMV...
OMV is one of the largest oil companies in Europe... 2nd I think...
2008 sales of 19 billion Euros... 41,000 employees... oil producer... oil refiner... gas stations...
come on man.. this is like clock work for them...
they eat these project startups for breatkfast...
read the last update announcement... 1518m horizontal section drilled in entirely clean and oil bearing...

what about Todd Energy... produced 8 million barrels of oil in 2005 (BOE)....

These companies did not get to the size they are today through making mistakes...

6) far from a gambling stock mate...
We had revenues supporting a cashflow positive position at 3rd quarter last year... we have good cash... we are on the brink of production...
we have Oyong Gas coming up this year...
We are set to earn more in revenues than the market cap of the stock...

to add to CUE being a gambling play... I specifically choose CUE because of its list of Joint Venture partners in all its assets... The only real one of concern is the Northwest shelf farmin of Zeus, with MEO and RDI....
MEO have the technology but have not proven themselves with the drill bit yet...
CUE's partners include Santos, OMV, Todd Energy (and shareholder), Coogee Resources... Oil Search (big PNG play)... Beach Petroleum free carry... Singapore Petroleum...
CUE have a very strong Board....

BOPD set to ramp up to 35k... We have Manaia to tie in which could offset adverse production risks that some think we might have...

happy as here... It would hurt me to if you thought I was a gambler...
a gambler of market risk maybe...
Sometimes I gamble on stocks, never on a large position...
opps... I did make a play on MEO, but I studied the craap out of that and picked it to bits and was very confident of a discovery... I dumped the day that Heron flow test at a measley 5MMCF...
That was a very lucky day for me...

.^sc