POO, page-159

Brent on a tear tonight.....up 2% at $79.70, while aussie dollar down sub 72 cents.

At their likely production now of a touch under 2 million barrels of oil PA , would put a very handy extra $4m into revenues for next 12 months, alone on pricing action today.

Extra revenues kick straight to bottom line profit, less taxes and royalties. Their hedge of about half of annual production will cap current oil price strength, however that runs out in march 2019.

It is perfectible reasonable to look forward to future earning, March being only 7 months ago.

This is an excellent opportunity here.....if management thought the hedge was good for the company, than post march and price of oil an extra US$ 20 a barrel and our very week currency - means an extra A$30M PA revenues. Company has a cap of just $160m.

It would be easy to go on with these one liners, highlighting how obscenely cheap this stock is...….BUT much better to quote the company itself, from a March 18 EUZOZ investor presentation......quote "EV/EBITA (2018) of 3.3 v peer > 10. " (My words) Take the hedge off and much higher oil price, that EBITA come down to 2.5. Really is a bit ridiculous.