$100 Oil by year end?, page-322

From today's St***head, discussing the top 5 performing O&G stocks on the ASX.

AUSTRALIS OIL & GAS (ASX:ATS)

Market Cap: $89m

The company is trading up from $0.047 in January to $0.072 on March 18, a 53.19$% increase for the year to date.

The shale oil producer holds the Tuscaloosa Marine Shale (TMS) in Mississippi, which contains 3.0 million bbls of producing reserves providing free cash flow and approximately 150 million bbls of mid-case 2C recoverable oil.

Australis achieved positive EBITDA for each quarter during 2021 despite the settlement of oil price hedges in 2021 losing US$5.4 million offsetting the prior year’s profit from hedges of US$4.7 million.

The company is confident of improving US oil and gas industry sentiment, as well as sustained higher oil prices, and increasing third party activity in the TMS core area.

“We believe that diminishing Tier 1 oil locations in other plays will reinforce the uniqueness of the TMS Core, given its productivity, attractive commercial characteristics and substantial remaining undeveloped inventory,” chairman Jon Stewart said in the company’s 2021 annual report.

“The Permian is by far the play with the most future production potential but the consequences of handling the vast amounts of associated saltwater that comes with its oil to surface (relative to the much lower water cut in the TMS) is a definite ‘watch this space’ due to saltwater handling costs and environmental concerns around reinjection wells.”