Look at the way ESG and AOE upgrades were treated by the market.
No, now is the time to buy, hold or sell on your own perception of the underlying value being created, not on the markets. The market is really disinterested in gas reserves atm, although you'd get whacked hard for not delivering them.
I really think we're quickly be back over the 1.25 issue price, but it's real hard to see any certain big wins sp wise short/med term.
We need to reawaken to the concept of stranded gas, that has long plagued PNG and offshore WA. Our BOW gas will be valued for two reasons: 1) The cost of proving up a resource 2) What value we can add to it 3) It's attractiveness vs other gas resources, whether due to proximity, cheaper to develop resource whatever.
The reason I am in BOW in preference to some others is that I believe we have the management has already created value in doing 1 very competitively to date, that it is likely to do 2 to at least some of the resource, and the Blackwater field at least is likely to provide 3.
I note from the recent QR the revenue/GJ AOE is realising for it's gas, mostly by selling half it as electricity. Better than LNG! Not sure about the ROE, or the margins at this stage.
EL
BOW Price at posting:
$1.17 Sentiment: LT Buy Disclosure: Held
