Sugar Loaf

In Feb last year I wondered out loud if AWE should sell their interest in Sugar Loaf which according to AWE had a see-through value at the time of $230-$350m. Probably worth a fraction of that now. Hindsight is a wonderful thing as the entire market cap of AWE is now only approx $480m. Board must be kicking themselves. What sweet sweet impeccable timing AUT had to sell their stake to Baytex at the top of the cycle.

My post below from Feb14:

"AUT (Aurora) is subject to takeover by Baytex as of this morning at a significant premium. AUT have a 28% working interest in the Sugar Loaf oil producing fields in the US and Sugar Loaf is about 1/3 of AUT's producing acreage portfolio.

AWE have a 10% working interest in Sugar Loaf. The boffins should now be able to more accurately value AWE's Sugar Loaf interest at this higher valuation point. Raises the question of whether AWE may monetise this asset whilst the iron is hot. This would simplify the AWE portfolio which would make AWE even more attractive to a predator IMO. Anyone have any ideas what 10% of Sugar Loaf is worth to AWE in a sale scenario. "


Where the bottom is for POO and O&G stocks is anyone's guess looking at the carnage in the sector at the moment. It will eventually get a bounce and maybe some stability but when and and what price? GLTAH