sto versus wpl and org, page-12

hello eerrtt

You must tell us please in a quite moment, what eerrtt means, if anything.

I cannot comment on org but I hold shares in both WPL (5,000) and in STO (43,000). I like WPL because it is superfund investment quality, has a decent dividend, but has an unrealistic P/E (around 15:1) in todays climate. Given below are its calculated selling prices based on the June 2009 report. Sorry for the list, can someone please tell me how to copy from excel into a post like this. But the bottom line is that WP is getting around A$70 bbl for oil and condensate but only A$3.25 to 5 MMBti for gas. Oil is down say 40% from its high but gas is down 80%.

Given STO mainly pruduces gas it will need to rely on recovery of gas prices to make bonanza profits. That said, if it can make profits at say A$4 MMBtu what super profits will it make if gas rises to say $20 MMBtu? With the advent of reverse cracking processes to make oil from gas, a process which is exothermic, one can reasonably expect gas prices to rise.

So I have WPL in my superfund where I want the minumum of risk, but STO in my trading portfolio where I am optimistic of significant gains.

Following your post I'll look at origin.





LOCATION
COMMODITY
PRICE (A$)
UNIT

NWS and Otway
Pipeline Natural Gas
4259
TJ

NWS
LNG
347
tonne

NWS
CONDENSATE
73
bbl

NWS
OIL
70
bbl

NWS
LPG
657
tonne

Laminaria
OIL
71
bbl

Mutineer
OIL
81
bbl

Enfied
OIL
76
bbl

Stybarrow
OIL
77
bbl

Vincent
OIL
61
bbl

Otway
CONDENSATE
53
bbl

Otway
OIL
554
tonne

Ohanet
CONDENSATE
31
bbl

Ohanet
LPG
250
tonne

Gulf of Mexico
Pipeline Natural Gas
5
MMBtu

Gulf of Mexico
CONDENSATE
60
bbl

Gulf of Mexico
OIL
70
bbl