I've only been watching STU for a week after it was suggested in response to a question I posed on the INP thread.
I thought that at 2.46 million barrels reserve the MC was about right before at $A70m when you use a general rule of thumb of $30/barrel in the ground.
Now the MC should be about $95m - so I figure a SP of $1.45 is about fair, meaning this is a bargain. This should also probably upgraded a bit as they are extracting their resource fairly quickly giving a more favourable NPV.
525-575,000 barrels this FY is not bad - works out about $55m revenue in aussie dollars giving about $35m profit. If they can maintain these flow rates with other discoveries then we are set for a SP more like $4-$5 as they prove up more reserves.
Took a modest position today by selling off some dead wood elsewhere.
STU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
