It would be an option but id like to see them with excess cash before they did a buy back. If OH truly has the 2C resource stated and they have confidence in the 3d survey targets and reserves, I'd prefer them to roll the dice and send down a well for $8m. A successful drill alongside the already completed high quality 3d could see reserves certified m in a short time frame (=$600m+ reserve), knock up a 40Tj plant and 12-18 months later we have another $100m p.a coming in, add that Walyering $70m and Peaker $55m. $225m p.a. ....Now that would see our SP rocket! Not reliant on JV partners either and less chance of manipulation. The big question is how good was the 3d? Not a lot of info released to holders yet.
18 months time, $225m p.a. WITHOUT West Erregulla, few hundred million cash, no debt, still have A&K and other EPs to explore........Strategic review done, I will send in my invoice ;-)
STX Price at posting:
17.5¢ Sentiment: Buy Disclosure: Held
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