Its trading at ~net cash backing once you take the current liabilities and C/note debt into consideration.
The old reserves estimates were based on a higher long term oil price and much more optimistic view of Puffin NE.
Recent production and unsuccessful development drilling in Puffin NE has further downgraded the 2P reserves but to what extent we dont know. Currently their production costs are far greater than the revenue if they sold at USD50/brl
The market is valuing AED's hydrocarbons at zero which is understandable. It still remains to be seen if the Puffin field can sustain a profitable operation. So far, AED has shown that it cant.
AED Price at posting:
62.0¢ Sentiment: Sell Disclosure: Not Held
