I'm Addiction to undervalued low cap , low P/E sub 5 growth Energy stocks
...CUE my fav ... EV = 36mill ... thats decent explorer cap value ..not Energy producer / developer / explorer
Some funny business going around the SP .. 187k up for sale 7.5c I took it out + few more hundred shares ..straight away another 190k turned up ....and I see 1mill placed at 9c ? .... broker with mandate to keep SP under 8c ?
spoke with our CEO other day .. and I only see major positives going forward ... of course he couldn't give out any insider info etc ... which I was never expecting
some titbits..from my failing ST memory.
-Paus Biru - would double INDO Gas production for CUE ... but would be least 2yrs away for first cashflows ..
-Mahato's been a major success and CUE is confident of expansion to the northern part ... 90mmbbls believes there has been other Indo Oil discoveries that have recovered upwards of 50% of prospective Oil resource..
-has had many calls from unhappy holders with the SP not moving north like many ASX O&G plays also thinks CUE is massively undervalued
-CUE interests in Jeruk 8.1% = nett 1.2mmboe ... Indo Govt wants progress ..
-increasing costs from PV drill .. good reason why NZO raised capital ... any funds to CUE will be via a short term loan or that was the plan not for more CUE scrip etc ..made the comment CUE is very focused on keeping shares tight and not to dilute long term S/Hs
-along with NZO would continue to look to add O&G asset interests ... in Australasian ... bit not NZ ..see zero ops in NZ with present anti O&G Govt ...high reg costs ..
-he did ask me the Question what I hoped to see from CUE going forward (he has spoken with many a S/H unhappy about the stale SP)..
I stated the only real way to grab some market attention was a more aggressive growth profile to engage with S/H Market a clear forward plan to 500mill+ CAP Energy Yield play!
Give S/H a WHY? to continuing to HOLD and Buy more as going from history 6yrs ago CUE had more CASH around the same 2000boepd production profile and SP that traded the same price levels yet Nat Gas had exploded in value + AUD Oil price has tripled!!!!
And IMHO the best plan would be a merger with NZO that would see at present $2-3mill per week in average cashflows ---70mill cash balance ...much lower overall Admin+wages = Net Profit
the Market cap $26mill CUE (must take off NZO holding) + NZO 91mill = 117mill so 47mill EV !! this would of course reduce OG Energy position to around 53% of shares outstanding which I think the market would like sub 50% even better ..
But of course its up to OG Energy if this would ever happen ..they may well just want the lot..
I think new name/ticker would be a smart move ... when you think how anti NZ Govt is against Fossil fuels ...I think Australasia Energy/O&G might be a better fit ..ticker : A8A
CUE Price at posting:
7.4¢ Sentiment: Buy Disclosure: Held
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