not sure trump can really incentivise oil production the reality is the shale drillers are no longer after production growth at any cost. The fact that shale drillers are having to move exploration to less productive areas (best bits are always drilled first) and have very fast decline profiles I think oil production is likely to surprise to the downside.
Either way with F5 drilling behind us the question front and centre has to be the ATO and CR and what is plan B if the company don’t get a result they are wanting.
cash should be comfortably above 1c a share unless F5 has cost more than they have let us know.
where to from here:
Post CR the company will have usd$6m and should be adding usd$3m quarter off current production adding no further exploration/development spending.
remedial operations at MBW and OBS should be cheap and possibly effective.
the only other near term development candidate is lightning and are Hilcorp fussed if this is developed in the near term ?
the company appears to be thinning the company to run down the assets over the next couple of years. They need to make a clear statement around how capital is to be returned to shareholders at regular intervals …..
OEL Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
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