Short Term Trading Weekend Lounge: 9 -11 Mar, page-42

STTCOMP OEL, FA LONG

MC 95 million
Share price 6.2 cents.
Cash as at 24/01/2017 15 million.

OEL expect to have oil flowing from their JV with BYE in the Gulf Of Mexico by mid march. A recent independent report calculated a flow rate of 3600 bopd (OEL's share 1800 bopd) would see them with them with resultant cash flow of 44 million AUD annually. The company has stated in recent reports that it expects the rigs capacity will be almost fully utilised which is 5000 bopd so if all goes well there could be considerable upside.  Potentially trading on a future pe of approx 2 with news in the near future. They will also be able to farm in for another 50/50 JV with BYE on a nearby lease and another at Bivouac Peak (also in the GOM)  later this year  to the tune of 45% by paying the first 6 million drilling costs. This also with BYE.


Chart is a ripper and put in a highest weekly close since July 2015

I've posted a monthly chart for sake of clarity.