It's great to see some differing opinions regarding BRU's prospects. I do not agree with them, but there in lies the fun of a public forum.
jtrain - you sound as though you know quite a bit about the costs of infrastructure, in particular the possible costs associated with an production that BRU will possibly undertake in the future. You mention Billions of dollars to develop the infrastructure that BRU will need to export its possible finds, it can be looked at in different mindsets... I think it somewhat contradictory that you say that, yet you are inherently implying that there may indeed be Billions of dollars of resources that are accessible. I full agree that for BRU to extract all of the possible resources in their tenements they will need huge amounts of capital, BRU does have 14 million acres. However, you imply that Ungani is of little consequence, well, what about the other 10 look alike's, many of which may indeed have much large resources than 20 million boe. Also, their geographic location is actually not so far from infrastructure, and if greater Ungani area is indeed prolific, then the costs of course come down with multiple finds and higher production.
It's great to have your thoughts on BRU, do you think that the Valhalla area that is being proven up right now is going to be uneconomic? Seems strange for you to say that, when I look at Browse, and the HUGE costs associated with it regarding 15.5 TCF in the ocean... while we are looking at 20TCF+, on land.
You do make a good point that there has been little production as yet. However, do you also think that Conoco has made a mistake investing in NSE, or Mitsubishi in BRU for that matter? The infrastructure that will be required to extract value from NSE/Conoco drilling locations will be larger proportionally than BRU... yet they are spending $110 million just on drilling.
You also know of ARQ and its past drilling in the Basin, you also know of Eric, then you would also know that he was very much determined to have BRU separated when ARQ was bought. If you have spoken to him, or high management and they have implied that they are indeed open to a sale of the company, I would be interested to hear that? I have as yet, no heard any such thing.
You comment regarding funding, well.. are you saying that in your opinion, they company will not be able to find Institutions that will be interested in assisting them with a capital injection? IMO I have no doubt that Insto's would jump at the chance to take a position in BRU, that is what happened last time, and a lot of positive developments for the company has since occurred.
BTW- Yulleroo did in fact flare gas, so economic extraction is a likely outcome IMO.
Anyway, respect your opinion, but it seems somewhat jaded. All the best in your investing. I would be interested to hear if you own shares in any Oil & Gas company's? Just for comparisons sake.
Good luck to all holders.
BRU Price at posting:
$3.29 Sentiment: LT Buy Disclosure: Held
