yep it is a touch disappointing that the news is light this week but news will start flowing again soon I'd expect.
What we do know is that Eric has stated that UN is not as good as Ungani 1/2. Mainly due to the expected limited flow rates (although this is yet to be confirmed). BUT I think what the market is missing (so too the broking analysts who look at this stock it appears) is that the whole Ungani trend has been derisked significantly. C'mon BBY and JPMorgan update your numbers on Ungani :-)
Also their next two targets Yakka Munga and Jackaroo have just had recent 2D seismic done, so the wells will be much more accurately targetted than UN.
Finally speculation of an imminent farm in by a major for much of the Laurel formation. My gut feel is that this is real and will happen, but whether it happens pre the WA Gov't passing the State Agreement into legislation is the only unknown. This is unlikely to occur until post election, so we're talking April. I'd expect a farm in, a stake in BRU shares (at a healthy premium) to occur pre the election with a "get out clause" if the State Agreement is not passed. ie hoping for a Happy Christmas!!! Eric mentioned that he has not been talking to BHP.......I'm not convinced of this (and of course also not saying that Eric is lying) - it all depends how that question (of BHP) was raised and how it was answered.....I wasn't at the AGM so I don't know. I would be extremely disappointed if one of Woodies or BHP were not part of a farm in - it would be crazy to let a Shell, Total etc jump in for what appears is a very cheap option. Also don't discount Santos.....!!
IF a farm in does occur, then no more raisings for BRU EVER, so the insto's will be forced to buy on market.
Finally, don't forget Key is about to spud at Cyrene!
There are 4 quality insto's on the register..........I would expect this to grow significantly post a farm in and/or more concrete wells in the Ungani trend.
A few "super daft" hedge funds are shorting (gently though)over the past two months - don't forget, shorting is nothing more than "deferred buying"
Good luck to all.........my tip........BRU trades to $3.30 by year's end, so up 267% for calendar 2012!
BRU Price at posting:
$2.79 Sentiment: LT Buy Disclosure: Held
