The company is locked in with low price contracts and there is not much gas sold on market. Last quarter, COE only got $9.06 per GJ including sales on market. Once the old contracts expire and the production goes up (starting with OP3D) it should make decent profits. Looking at the information, it appears to be 2025 onwards.
Based on reserves and the market value, the company does not appear cheap IMO. Only 222 PJ of 2P gas reserves plus 202PJ of 2C contingent resource is not much for a company with $486 million market cap. However, if we deduct the money spent on the recent plant purchase, it starts to look cheap. Many gas companies don't have a gas plant. One example is NWE with a market cap of $329 million. It has 20% interest in an unknown quantity of gas (no 2P reserves yet) and only one well drilled and no gas plant in sight!
Ann: Orbost Asset Management Strategy, page-16
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Last
20.5¢ |
Change
0.005(2.50%) |
Mkt cap ! $528.0M | |||
| Open | High | Low | Value | Volume |
| 20.5¢ | 20.8¢ | 20.0¢ | $885.4K | 4.330M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 3139 | 22.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 19.0¢ | 9807 | 1 |
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| Last trade - 15.59pm 21/08/2024 (20 minute delay) ? |
| COE (ASX) Chart |