Seems the QR has flown over the head of the market? First real positive signs out of Tangai in my opinion. To have paid back the drilling of B-5 ($0.64mill US...or $1mill AUD) within 2.5 months of increased production is a decent achievement, it highlights the potential of strong growth once capacity is increased....B-5 has been producing under constraint due to current facility capacity. Looks like there'll be further spend on upgrading the acreage in the coming quarter too, which is what needs to happen to make the DMO more attractive....just keep ploughing that ROI back into increasing production and facility capacity, also smart water injection trials could see a significant extension to field life/reserves. All it will take is one quarter of producing their JV target of 1400bopd coupled with keeping the field in cost recovery mode and this could be a real game changer IMO. Tino seems very upbeat about this Bunian field now, or that's how I'm reading the commentary anyway? Perhaps he sees significant upside in expansion to production and reserves through this new data on the Bunian field....maybe they're not desperate to chase aquisitions just yet, as it sounds as though there's growing confidence in the current asset going up a notch in the coming year ahead?
BAS Price at posting:
0.3¢ Sentiment: None Disclosure: Not Held
