Thank you. A measured and well reasoned analysis. My view is:
If the 2 wells being drilled as operator are at least on par, the price should bounce because of a reduction of risk.
When MRO finally discloses the closer spcing pilot well results and the AC results, there should be a re-focus on the potential value of the non-operated acreage and MRO may revise its H2 drilling plan.
There are increasing indications that the US may export surplus gas (the UK is planning to buy US gas) and that should be positive for Henry Hub prices and reserves valuations going forward. It is unlikely that OPEC will enter into a 'trade war' and drive down oil prices but, if it does, it will be offshore projects and tar sand projects that will be hit before shale gas projects imo. There is a chance that Iran may become more user friendly and that sanctions may be lifted but that is not imminent.
AUT is likely to drift into H2 but recovery might be swift once positive news starts to flow.
AUT Price at posting:
$2.81 Sentiment: Hold Disclosure: Held
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