Folks I am still staying on the sidelines for now rather than re-entering at these prices which still do appeal to me.
It is reminiscent of what Austock has had to say on Arrow recently (of which I hold also). I think it is also very relevant to ESG and what we have been talking about for the past month:
The broker said the company's (AOE, that is) international assets "had potential" but it pointed to delays in the company's ability to achieve reserve certification at it's Australian sites. "A further 200 development wells are planned for 2008. In our view, this strongly suggests flow rates per well are taking longer than anticipated to achieve expectations" Austock said.
Sounds like ESG don't you think. Hence there may be better buying opportunities ahead for ESG.
I will be waiting to see there reserves certification in the next week. I think the market has factored in a disappointing result but there is still scope for downside risk imho.
ESG Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
