These things unfortunately happen. I think it is at a great buy...

These things unfortunately happen. I think it is at a great buy in price at the moment. When you look at the opportunities it has to develop reserves from the next few drills that could quite easily replace those that have not and may not eventuate from S2 and S3. My problem is that I am heavily invested in some other species that may or may not come off. STX like 99% of people thought it would come off to some extent.

The reality is WA is going to have a gas shortage in the next decade, especially if lithium recovers as I hope it will and the associated mines and infrastructure require development. The people most likely to drive that given their cornerstone shareholdings are Gina and Minres. Why would they buy STX for overs, is if they can make more money from lithium with a controllled energy source at an internally controlled price.

The WA government even if it doesn’t change the gas export policy will need to incentivise exploration and development of gas. The quickest to get online is the Perth Basin. Who is the largest landholder in the Perth basin, STX. So politically STX has some power in this scheme of things.

Just like the shareholders of TPD found out capital management is critical. Had they had enough cash or cashflow to ride out to first production they would be sitting pretty now. I hope that once these next drills are done, we become conservative in our cash burn. This reminds me of HZN which dropped because of its issues in PNG, only to now be a cash producing cow. I think STX could still be the same.