looks set for next leg down, page-7

Well I'm disappointed with these few dusters in row but they did have a good run on winners leading up to it, I guess thats the name of the game for an explorer.

I like the fact that they are in a few different regions and have abit of diversification and as I've mentioned a few times, the fact they have considerable cash in the bank and no debt. I believe their acqusition of ADI should be EBIT accretive this FY. If they continue to fail at the drill bit perhaps more acqusitions that add to future reserves may be in order.

Someone asked (I think it was AgentM) what sort of entry price would be suggested. I would suggest in the range of $1.50-$1.60. This is based on their cash on hand, producing assets, and a small amount of sucess from their current exploration programme inlcuding Yemen, NZ etc.

So upside value for me (above the 150-160 range)is based on:
Yemen being reasonable size
USA ADI acerage being prolific producer in years to come
WA shale assets being a winner
Eventual sucess in NZ (perhaps next drill, but not holding out for it)
Possible future additional acquisition of producing asset (given their cash position)

All of the above is obviously abit of blue sky and subjective - but thats the nature of these O&G coys and why everyone should do the research and form their own opinions (thats my caveat)

I guiess it now just depends on your own timeframe and oppurtunity cost