Even though the australian dollar has retreated to 85 cents...

Even though the australian dollar has retreated to 85 cents american and the oil price has retreated to around 70 USD a barrel, it has not really had any affect on CUE

The reason is because CUE has hedged one quarter of its oil production at 86 USD a barrel

So in reality the company is receiving more per barrel in AUD for the hedged production now because of the conversion rate of the USD to AUD

At current prices = 1 barrel of oil is now worth AUD 101 for the hedged production

At current prices = 1 barrel of oil in now worth AUD 82 for the unhedged production

I was a bit disappointed when reading the report initially that the 15000 (total production 60000)of CUE's oil production per month had been hedged (thinking that the oil price would continue to increase) However now I am pleased that management had the foresight to do this hedging

CUE has most certainly been drifting lower due to the whole market retreating, albeit on very low volumes

Hopefully we will see a breakout north once the announcements start coming in for

FIRB approval of Petrobras in the Artemis prospect

Signing off of the farmin agreement with CUE and WOODSIDE on the Caterina prospect

Unfortunately I was more than exuberant in my opinion of the company and may have made some rash statements

To all the people that read this thread, I apologise for this

CUE is definitely a long term hold and those players wishing to day trade the stock, good luck

Warren Buffet was quoted as saying that the time to buy is when everyone is selling

Perhaps is now a good time to accumulate on weakness, or for those not in the stock to buy