Mark with respect, ATS is not a stock for a true Super Fund. If your fund manager is recommending stocks like this for you Super Fund he is purely speculating/gambling with your future.
There are only two things that can happen to this stock going forward. The optimistic view is that they raise some capital and attempt again to prove that they can extract the resource economically. Without going into the complexities of this, if this is achieved Bingo!
The second outcome would be that no further wells are drilled (no worthwhile capital raising), the oil volume flow slows as is typical with these wells. Management consume any income stream for wages and operational outgoings until it becomes uneconomical. What often happens here is another entity starts up and buys the distressed assets believing that they can do what others failed to achieve. This is what happened in a round about way with Australis acquiring this project from Encanna.
I believe at least 3 new consecutive successful wells would have to be drilled at somewhere around $10mil each in a $60+ oil price environment to stimulate serious interest from a third party. ATS are all about proof of concept not to become a producer of any substance like Aurora. Most of these guys are high net worth individuals approaching retirement age. Has the eye of the tiger gone! As always am interested in other people's views.
ATS Price at posting:
5.7¢ Sentiment: Hold Disclosure: Held
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