Analyst Update, page-140

An overly pessimistic take on things.
- They've written off all the upside for SE, which is ridiculous. Only attributing 58PJ of 1P reserves. Why not value on the basis of the 128PJ of 2P reserves?
- No mention of Ocean Hill at all (300PJ of certified reserves). Zero value.
- They also say Walyering is performing below expectation, even though it's humming along very nicely and selling gas at very high prices. It uses 33 PJ/day as the benchmark even though this was always the upper limit. SN said he thinks the next quarterly will surprise to the upside.
- they also value Walyering at $192 millio even though TPD final market cap was ~140 million for 45% of the asset (ignoring value of Mongolian assets). Also don't forget W7 may significantly improve the life-span and reserves of this sunk capital.

Overall, a very dodgy report IMHO.

I'm not sure who pissed in Macquarie's porridge, but if this is the treatment you get after securing funding from them and giving them millions of free options, you have to ask why you'd work with them again. Maybe they can see the writing on the wall in terms of Strike paying off their debt and severing ties? After all, they already dumped their stock, IIRC?

Very hard to explain why Macquarie is diverging from a lot of the other brokers, too.