Outlook, page-41

No sweat – the SP is definitely more reflective of your sentiment than mine at the moment!

It’s hard to say how much negative sentiment is attached to management. They have been around for a long time, stuffed up a few wells and generated no shareholder value (whilst paying themselves pretty healthy salaries). They really have nothing to hang their hats on, except the sale price for Raven (which was an above average result IMO). They also seem to take a long time to bring wells into production (weather notwithstanding).

That said, there is definitely an overhang from the recent kicking that the broader O&G sector has taken. We had very good support at 1c for a long time prior to kicking off drilling at Capitola. We now have more cash and steady production (with more to come), and yet here we are still trading at 0.007. I expect a rerate as the oil price continues to rebound and more production comes online, but whether we ever end up with a decent premium to cash-backing for Capitola, I have no idea.

PS – a 100+ barrel result at Shari Lynn might help.