short as possible

Am constantly looking for stks with poor prospects for their product combined with a balance sheet bulging with debt. Despite being called 'Oil Search' OSH is essentially a LNG company. The LNG price graph is almost as bad as that of Ni and its getting worse as world is swamped with a glut of gas. What sealed it for me is discovering OSH has signed-off on a multi billion dollar expansion of its PNG plant despite the crap macro. Hence am short as in this stk starting late last week. Despite almost tripling production it would need the LNG price to rise substantially to justify a SP at $7.25 and imo its unlikely to happen. All the LNG stks are in strife i.e. STO, ORG, LNG. Huge capex committed right at the peak and production starting with LNG prices waay down and falling. I wrote several posts that STO was waaay over-committed and would blow-up. Since then SP has almost halved. Unfortunately I was overseas and unable to access a broker to short sell. So far OSH has held up whilst others have/are tumbling. Will OSH follow suit? I think it will.

'OSH’s main asset is its 29% interest in the PNG LNG Project, a world-scale liquefied natural gas (LNG) development operated by ExxonMobil PNG. The Project commenced production of LNG in April 2014 and delivered its first cargo of LNG in May 2014. The project has had a marked impact on production volumes, with FY14 production increasing 186% to 19.27mmboe.

OSH’s strategy is to continue to focus on PNG operations where it can leverage off its operational expertise, experience and strong acreage position with large contingent resources in PNG. With 11 tcf of contingent resources in PNG and large annual exploration and appraisal budgets, the company believes it has the potential to double its production between 2015 and the early 2020s. The company strategy is supported by long term demand growth for energy from Asia and the increasing role of LNG in the global gas supply mix.'