BRU

0.00%

7.9¢ buru energy limited

I must say that I am very pleased that we have in Tom a CEO who...

First 3 Last

Share
Profile

Follow
Dozen

1,938 Posts.

483

29/09/24

07:43

Post #: 75889599
Share

Originally posted by Dozen ↑

As I see it, so far, it's a mixed report card for Tom.

I'm glad that he has recognised the big opportunity now is to commercialise Rafael Deep in stages by focusing on the domestic market opportunities first in the NW of Australia where first-mover advantages are to be had. Taking advantage of the region's remoteness by moving into downstream oil & gas is the way to go. The opportunity to create a virtual monopoly in regional niche markets below a critical price point for refined oil products and densified gas products (e.g. CNG, LPG & LNG) with which importers can't compete, is too good to miss. It will however require considerable capital investment, but one that should generate regular cash flow, high margins and IRR because of the virtual market monopoly that could be had. This would present an attractive project funding opportunity.

I'm also glad that Tom has expressed the need to focus on development as opposed to exploration for its own sake, now there is a project of sufficient size to act as a flywheel. In subsequent development stages, beyond that currently envisaged - when Rafael and analogues reach and exceed 1Tcf say - then markets further afield will need to be considered. Depending on size this could still be in Australasia. Australia is strategically in a dreadful position with insufficient refining capacity to withstand conflict from those clearly threatening our future. At the likely larger stage 2 or 3 project, perhaps the USA or European petroleum industry capital markets will need to be tapped, where they have not been overawed by anti-petroleum industry wokeism. A pathway like that of Woodside, Oil Search or Santos potentially awaits. However, a lot will have to go right.

I am also glad Tom has seen the need to prioritise where resources are dedicated and that that should be focussing on developing the petroleum industry opportunities in the NW of WA where there is the unusual opportunity to dominate a regional market and raise barriers to entry for those less well endowed.

If the rumours are correct, I am glad too that Tom has apparently realised the error in selecting Sabre Who as partners and rapidly developed or activated reserve plans for an alternative funding pathway to get Rafael Shallow drilled this year no matter what - even if that means sole risking - something I had posted about repeatedly. If it is the case that Sabre haven't been able to come up with the funds on time, then this would be a black mark on Tom's judgement by selecting them. One hopes it wasn't just because ex colleagues were apparently involved. If they are all he could dredge up, then he would have been better taking some shareholders' advice to sole risk the drilling of Rafael shallow & Ungani Nth on a limited fund raising which could have been done then at 12c not 6c as seems likely next week.

Tom's focus has already led to offloading non-core assets that I suspect were disposed of a little too lightly and possibly too readily. By his RIU presentation, it sounds like more will be offloaded before too long. I wonder whether this is partly the reason for the Trading Holt and whether the capital raising part could be capital raising into H2? He did mention in his presentation near term fizz for long suffering shareholders.

As observed previously it was a most unfortunate oversight not to have had staff closely monitoring plans and progress with the Fitzroy Bridg so have not to have missed the opportunity to maintain cashflow with 100% of Ungani.

.

Expand

I must say that I am very pleased that we have in Tom a CEO who is unashamedly pro fossil fuel and a new Chairman who seems the same and both with an orientation to developing a production and marketing orientation for BRU while building on the sedimentary-basin-specific intellectual property, human capita, experience and geological data base built up by Eric. Tom undoubtedly had a hand in selecting the new Chairman.

Maybe Sabre have been trying to raise too much funds without much of an O&G success record yet, and run into lack of support from our woke anti-fossil-fuel save-the-planet fashionable-ideology Teal EV-proud top-end-of-towners.

BRU Price at posting: 7.9¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

NAM

ACCC seeks Olam divestments before it can buy Namoi Cotton

KAL

KalGold rolls out detailed aeromagnetic survey across Pinjin project

STK

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

ACW

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

The market's shrugged at China's stimulus measures all year. Why is this one different?

DEG

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

The winners & losers on market if negative gearing were gone

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

COD

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

ESR

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

There are more pages in this discussion • 3 more messages in this thread...

First 3 Last

Add BRU (ASX) to my watchlist

(20min delay)
Last 7.9¢		Change 0.000(0.00%)		Mkt cap ! $53.03M

Open	High	Low	Value	Volume
0.0¢	0.0¢	0.0¢	$0	0

Buyers (Bids)

No.	Vol.	Price($)
1	3	8.0¢

Sellers (Offers)

Price($)	Vol.	No.
8.0¢	64473	2

View Market Depth

No.	Vol.	Price($)
1	3	0.080
1	19982	0.075
1	10000	0.073
1	100000	0.072
1	25000	0.071

Price($)	Vol.	No.
0.080	64473	2
0.082	182912	2
0.084	128205	1
0.087	88369	2
0.088	60000	1

Last trade - 16.12pm 27/09/2024 (20 minute delay)

BRU (ASX) Chart

Day chart unavailable

I must say that I am very pleased that we have in Tom a CEO who...

ACCC seeks Olam divestments before it can buy Namoi Cotton

KalGold rolls out detailed aeromagnetic survey across Pinjin project

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

The market's shrugged at China's stimulus measures all year. Why is this one different?

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

The winners & losers on market if negative gearing were gone

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

I must say that I am very pleased that we have in Tom a CEO who...

Top Stories

ACCC seeks Olam divestments before it can buy Namoi Cotton

KalGold rolls out detailed aeromagnetic survey across Pinjin project

5.6g/t gold intercept at Serbia's Rogozna supports Strickland's hopes for high-grade core

Actinogen Medical ramps up Alzheimer’s treatment trials, targeting fast-track global approvals

The market's shrugged at China's stimulus measures all year. Why is this one different?

HotCopper users muse on De Grey's denial of Agnico Eagle takeover bid – but who are Agnico?

The winners & losers on market if negative gearing were gone

Week 39 Wrap: What HotCopper’s watching; China’s new stimmy moves boost metals; Oz CPI drop

Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

Estrella first foreign entity to win tenements in Timor-Leste under new laws ahead of 2025 tenders

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News