Just read the announcements and I am over the moon!!!!!!!!
Three key points I see are $600M for 60% and AED will be a continuing JV partner for SINOPEC. Does it get any better.
Congrats to Bionic, Tammy and RougeT for their continuing support during blackout. When I suggested a price of 4-500Million, I remember the doubters "who is going to pay $500M for AED's crappy assets"? Well those critics are sulking tonight.
Looking at calculations, I see for AED:
1. Debt Free - All debt of $250M paid off - maybe less with production continuing and the security that comes with it! Remember SP has been depressed because of debt concerns.
2. Say $350M cash in Bank!!! A lot of ppl forget about this part when they were talking about the SP dropping to a $1 on Monday (they are a joke).
3. 15,000bpd (min) = about 5M barrels a year sold at average of say US$95 = US$475M minus prodn costs of $33 = US$310M @ 40% = US$124M or A$135 net revenues. Say ongoing NPAT of A$85M.
4. The Upside!!!!! Production increasing with improvements to existing wells and new wells coming online.
5. Price of oil at an all time high of US$105!!!
I said it the other day. $500M and less than 66% of the company and we are through the roof!!!!
Current market cap is about $270M. Based on figures about we have company worth well over a billion dollars or 4 x current share price. $5 here we come on Monday. $8 by end of week. What are the chances of a special dividend?
RougeT is your are reading this (whilst on suspension). Well done Champ!
AED Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
