What's there to like about Australis?, page-40

Alejandro this stock has gone from 46 cents to 2 cents in 18 months (now 3.7). To expect $1 with all due respect suggests you don't understand this stock. Major capital raising, oil price stability above $60/barrel and a good sound drilling campaign are huge challenges.

I would love to see a joint venture drilling partner engaged first. ATS will have to sacrifice a significant portion of the project to secure such a partner. Then the technical challenges have to be overcome. As the oil price rises the major players of the world will release more supply into the market effectively putting a brake on any price rise running far. They have been hurting and can't wait to turn the taps on again. Dare I say one of the only things to dramatically push the oil price up would be a major world conflict. Not a desirable thing. A third party gusher next door would help as well haha.

I share your glee at the small price turn around however I believe that the most extreme optimistic outcome may see 20 cents within the next two years with the worst case scenario being the demise of the company. May I suggest you research and get to understand the fracking processes and the difficulties in drilling at this depth with particular understanding of the lateral length drilling complexities. There are significant challenges. Also research Encana's last 15 wells drill costs. Would these costs stand up in a $60/barrel market?

Gee I hope they can get it right. Don't just read the company reports do your own independent research. Understand the difference between the Austin Chalk resource and the TMS resource. Understand their last drilling outcomes and why. Understand the cost per well and the 20-22 fracking stages they need to achieve real success in each well going forward. Any prospective partner will be extremely aware of the technical challenges and the optimistic reporting processes used. Please take my comments in the manner they are intended. There is a lot to understand about this company and the fracking industry in general. They will need luck and hard work for a recovery of any significance to take place. They have been a little unlucky so far with poor oil prices and some drilling mishaps. I might add that buying at 3 cents is far better than 30, 40 or 46 cents as many, many people and institutions have over the past couple of years. How would they feel now? Wise men say "Be careful in investing in something you don't understand well". If you want to have a punt by all means but don't punt the farm.
Good luck mate!!!