Bought the hype on this last year, in at 58c and parachuted out...

Bought the hype on this last year, in at 58c and parachuted out at 46c on the way down. Now rebounding but here's my 2 c worth

Heavy oil has two very big negatives :
-Prod'n rates decline very rapidly.
-Continual expensive redevelopment required, finally costly steam injection.

SAE lost $3m last year and on an operating basis looks like broke-even 1st 1/4 this year. NSA prod'n did hit the much touted 1,000 bpd, but in 3 months has dropped to 460 bpd from the same wells (ASX 13 May, prod'n 13,696 b for April = 460bpd).

McCool hasn't managed to produce anything yet and the Paris Valley Oil is exceptionally heavy at about 10 API. All previous tries have failed to move it and at this stage there must be significant doubt that commercial volumes can be extracted.

On the plus side, higher oil prices might result in a profit this year and the exploration for light oil in San Joaquin may succeed.

Imho an awful lot has to go right to justify the MCap of $116m. All only my opinion. DYOR

PE