Bottom of the Barrel Valuation, page-4

Just another thought to clarify. If we do not find any more gas, then the market is correct in dismissing any value-add for any policy change because most of the gas we have now are contracted to domestic suppliers. So even if the export ban is lifted, it would have negligible benefit to STX. Beside, if SE only contains 128PJ, it won't be enough to warrant a standalone development, which means we will need to fast track WE development to comingle the development, thus stiffling our growth ambition as we will be at the mercy of Hancock.

SE is absolutely central to our overall strategy. A standalone development there will provide us with the necessary cashflow to fund the appraisal and (maybe) development of OH, while affording us the luxury of not having to rush WE and maybe cede some concessions to Hancock in the event that we will need to develop it faster more than they do. That said, don't stress on it too much as no amount of stress will change the outcome Focus your energy on determining your next course of action based on the different potential outcomes instead

SE3 is a timely reminder that O&G game is inherently risk game no matter how successful a company has become, and to always price in the appropriate level of risk discounts. It is also a timely reminder to always take some profit. To be honest, the SE3 saga has brutally blown a near 7 figure hole in my portfolio value, but I'm somewhat comforted by the fact that I have made more than enough from my trading in STX to somewhat offset this temporary setback, and that I believe we are at or near the bottom and the risk/reward is now overwhelmingly skewed to the upside.

For those who may be interested - my holding/trading split is 60/40, meaning I will allow myself to trade up to a maximum of 40% of my total holding at any given point in time I have now thrown all my original STX capital, as well as some of the realised profit from trading, back in, so I'm now at an all-time high in terms of my STX holding and will continue to accumulate at current price levels

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