While the official date for the update has been given as the end of June ( and AWE controls that side of things)there is a possibility of an earlier release.
I would stress it is only a possibility and is probably only wishful thinking on my part. NZOG has 138+ million Options (@ NZ$ 1.50) expiring on June 30th.
At the moment NZOG sp is just above the NZ$ 1.50 target (NZ$ 1.58 today - has been as high as NZ$ 1.64 a couple of weeks ago). It would be desirable if the TUI upgrade happened to come out mid June ( say June 17 - 19 period) as a significant upgrade could help the sp and make the conversion of those Options more desirable and certain.
No guarantees that AWE is going to play ball, or be able to play ball for its joint venture partner, but it would be helpful if it could.
No one is willing to predict how TUI will go into the future because it has not followed their prediction. They often say that they expect the water cut to increase but in the next breath they say that it has but not as much as they had expected at this stage. So they really can't give a clear answer because TUI has defied all their best predictions for its performance over this year let alone next.
So far as PPP is concerned. Yes it appears cheap. They do have a share of the Maitland gas field but that won't happen till about 2010. They also have a % of Corvus. IMHO it is a share that is worth a punt and just sit and see what develops. There has to be some action there eventually with that amount of cash building up in the coffers thanks to 10% of TUI.
AWE Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
