The last few weeks have been very enlightening in that the...

The last few weeks have been very enlightening in that the extent of human "panic" is truly remarkable! I do believe a correction to the overheated global bourses is in order but the extent has me baffled. Unfortunately, to add further pain to the Energy Sector, the tug of war going on between the heavy hitters in the oil market have cooked up the perfect storm.

Now what does all this mean to poor Ole STX - some short term pain indeed but there is no doubt that the company is sitting on a considerable parcel of excellent ground. I do take my hat off to the Board and Management in respect to the very strategic and company making decisions to focus on the Perth Basin and the subsequent drilling results that followed. Had we remained with just the Cooper Basin assets I suspect STX may not have survived the current tsunami and that would have been a disaster for all shareholders.

The timing associated with securing the necessary funding to further develop these assets has also proven to be a solid tactical manoeuvrer. We now have the opportunity to take this project to the next level which should demonstrate the intrinsic value to the broader market. This will lead to a significant uplift in shareholder value and combined with the share market normalisation post Covid-19, common sense and value will hopefully prevail.

As I see it at the moment the opportunity to secure shares in companies like Strike Oil, Santos and Beach Petroleum, at what can only be considered bargain basement prices, is too good to be true. Indeed timing entries into these and other stocks, given the irrationality in the share market, poses some challenges but the rewards over the next couple of years could be considerable. As always patience and a clear objective mind are your best friends in times like these.

Of course please DYOR