These are quality longlife assets (approx 20yrs) I was reading that the expected payback on these wells is around 7 months of production and on poly treatments the payback is approximately 1 month. Thats a very good rate of return on $$$ invested/employed
As far as results go if you are prepared to strip out some of those noncash items you get a much better picture of how the company is really travelling Revenue up 30% (despite forex adjustments) ebitda from ops up 39% cashflow from ops up 40% to $30.2m Operating expenses down 12% Debt down 20%
Underlying NPAT up a whopping 233%
This company is a cash generating MACHINE (despite its hedge obligations)
Lifting costs = US$15 boe seems recent appointment in US designed to further reduce overall costs and take more direct control of operations.
I tend to agree with the idea that POO has a new floor of around $100+ and that analysts and the market have seriously under rated many oil and gas companies based on amongst other things uberconservative forward commodity price estimates. Cheap oil and gas is a thing of the past imo
AMU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
