I would call it profit taking and probably shortterm investment strategies. For those who are following Stuarts latest developements are well aware that the fun is only just starting. We have not even got all the dst results from Taparoa and the Cadnie Owen formation is probably going to be a second producer for this well (fingers crossed) The next well will probably be Taparoa 2 which will if succesfull double the flow rate and give Stuart around the 2400 bod extra undhedged oil. And you are probably well aware of the diesel plant that would be a nice add on value for Stuart in the order of around $20 / bo ,faster payements of deliveries and transport costs. And not forgetting they have still a number of exploration , development and wild cats planned for the rest of the year. With the extra benefit of having the drill riq already booked and available, when others are fighting for it. And last but not least most of their disaster hedge policy will come to an end by the end of June 06 . This would add about another US$6 million per year on extra cash.
So the big question is would you sell a company like Stuart at this stage????
jojo
STU Price at posting:
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