Ann: Cash Sale of Blackspur Oil Corp for A$83.3M, page-34

Blackspur was purchased in 2021 for A$17M but came with A$43M worth of debt - so total consideration was really A$60M.

No dividends have been returned to shareholders in that time, apart from the distribution based on a separate asset sale.

So CE1 have derived A$23M of value out of this asset in the 3yrs of ownership, or 38% total return. Its not bad, but it isn't great, especially IF it was forecast to be FCF positive and paying out distributions. CE1 essentially did the hard work transforming the asset into a debt free FCF generator and now it is being sold as that - pity.

I firmly believe it can take time for the market to wake up to FCF generation potential, but you have to be in for the long ride, which clearly management were not. I had HZN comparisons playing on my investment thesis (They paid me back handsomely over the last 3yrs...) but you have to be willing to hold...

Bit indifferent on this deal, I didn't think they would sell the FCF generating asset, but i'll walk away with a nice profit, and only curse the BOD if the oil price flies higher!