Its encouraging to see Oil production back up to near 30kbpd in...

Its encouraging to see Oil production back up to near 30kbpd in Brazil.

Most notable is the Gas produced. They appear to have made a large Gas extraction, which presumably, has been spread over the entirety of the production. It would appear to be the reason why some of the Wells were closed. Hence why we only achieved Oil production of ~25kbpd over the past month or so.

I guess we'll find out in the Quarterly Report in a months time.


Also, like @filbert I was bit disappointed in the Nil cash contribution from the newly acquired Who Dat.

For a A$1.1b investment, I was conservatively estimating a cash generation of ~A$240mpa ... or A$60mpq. So to be told the whole of cash generated there was used for infill drilling seemed ... high.

I would have thought A$60m a material outlay and disclosed in the acquisition memorandum. Especially so close to acquisition. The BOD thought as much to highlight a proposed US$60m outlay for exploration of Who Dat in CY/FY2024.

I felt a cash contribution of A$240mpa conservative as it represents an EV/EBITDA of over 4. Whereas our overall EV/EBITDA is closer to 2.5.


I've also wondered if Who Dat production has been impacted by the GOM Louisiana oil spill in early Nov23.

I would presume either Brazil or GOM disruptions worthy of a production update ASX Ann.. Certainly both together but nothing received. It would appear the BOD consider both immaterial for disclosure to shareholders.


I'm not expecting a great Dec23 quarterly. Brazil production is known and now so is Who Dat Nil cash contribution. Whilst underperforming in that regard, it will still be a generous cash contribution from Brazil alone.

Perhaps Scotty's guidance will explain quarterly difficulties and underline expected CY/FY24 cash.

Oil and Gas equities are all undervalued, IMHO and KAR especially so.

The USA is now the highest Oil and Natural Gas producer in the world.

Russia and Iran announced a complete departure from the US$ last week. However, the US$ still dominates:




It was interesting to hear a commentator say last week, that he wouldn't be surprised to see Saudi Arabia depart the US$ next year. That would be the full stop ending to the Petrodollar. Although some would say that occurred in Aug21 when the Saudis signed a military co-operation agreement with Russia

The USA are again energy independent and their Crude exports have soared this year:




The EU on the other hand struggles:




Oil is currently valued at 26 barrels to an ounce of Gold. In those relative terms, Oil appears underpriced.




The 50 year average is in the low teens. Is Oil underpriced or is Gold overpriced?

Oil fears demand destruction?