A good announcement on Thursday.
Not many buyers turned up, but there were a few enthusiastic sellers and they were keen to dump at .2 cents.
This will end soon as it is totally illogical. Once the dumping at .2 cents stops then the sp will improve.
BAS does seem to be on the nose with investors. I guess a lot of people have had money tied up in BAS and it has been impossible to sell at reasonable prices.
As per the announcement the financial situation for BAS as changed significantly.
In November BAS’s share of oil sales was 15,083 barrels. They got US$62 per barrel and the cost of production is US$20 per barrel.
This is a profit of US$630,000 per November, just one month..
December is producing close to 20% more oil than November and is likely to mean a profit of US$750,00 per December.
These figures are the profit from oil production. The field has been profitable for awhile but other cost of running the company eg administration usually about $500,000 per month use up all the production profits.
When the quarterly comes out late in January I would be expecting a $250/300,000 real profit.
And then the March quarter with a full three months of the higher bopd should have a real profit of $750.000 per that quarter.
If they manage to keep raising that oil production closer to that doubling figure of 1,400 bopd then that will add another 30% to the real profit.
Eventually the market will become aware that BAS has become a profitable company and then a rerating will slowly emerge. Investors will start accumulating and stale holders will be able to remove their money without having to dump them for .2 cents.
1,100 bopd is a very good production for a $7M company.
Saltbus
BAS Price at posting:
0.3¢ Sentiment: Buy Disclosure: Held
