Congratulations, page-39

There appears to be a few annomolies in the sale (net acres sold versus 4697Ac net in 1st May preso), and the deal price of issued securities in the transaction being "above market".

In terms of value (US119m approx value) - AZZ has done ok (see slide 7 of 1st May preso):
PDP = 64m
PUD - 138m +

ie they have recieved circa 45% of PUD value and full value for the PDP reserves. they have "given up" the upside from horizontals and the 20Ac spacing potential.

IMHO - getting rid of the MACQ debt facility is good for shareholders (they cant be screwed over by a bank, nor forced into hedging.....). It has been obvious for some months that AZZ was not able to fund a Hz program at southern star.

The questions for future value are:
1. 11984Ac at N.S - production 143boepd, how much of the 40Ac potential will investors "pay for", and can AZZ "do a deal" to assist in funding its development (pg 30 of preso)?
2. 11,000Ac at "bigstar" - 5 wells, minimal production, doesnt appear to have the drilling obligations of S.S. ? (tobeconfirmed) .....so a call option over nearby operators success IMHO.

At least it wont go broke ! which is morethan one can say for a few other asx listed oilers operating in this region.