we have a dillema

Ok Dong beaters,

I have done the calculations. Netted off every parasite that gets a cut off the top. Assumed (if you allow me )the current spot price of oil and gas. Assumed current production rates do a straight line ( now you think I am a dong beater) and i get $5.4m revenue- gross- here on. It includes D & L 3 and Abita forward estimates.

Now this is staggering. I mean this is fantastic.

The share price should be 3 x higher.

No you do not apply industrial p/e s to oil stocks.

You are apply the sector average of 20 x. Why because you go from naught to a shit load in 13 seconds. Industrials do not ever do that.

So what is the f problem. Basically management. Could not sell a story if their life depended on it. They need a front man. A spruiker. The chairman I got the impression at the AGM has the charisma but based on his wealth and age and focusing on err.. medical technology philanthropy.. doesn't give a shxx.

Now to the dong beater last night who told us to read the cashflows. Mate get a life. I am a qualified accountant and I know how to read financials. The fact is emerging oil comapnies with emerging cashflows will always look shix until the income stabalises and is recurrent. Bugger off.

Some how this gem needs to be discovered by the market.

Do not get me wrong. My criticisms are well founded.

My take is they have and new some time ago that a target within Abita looks the goods. Double your money in the target area. Love it. Thats why they have delayed west klondike and leduc Reef. Why piss your money up against the wall on high risk drills when you have got a second mother load below your proven feet.

These 2 wells will never be drilled in my opinion unless they get desperate and thats why they were never given any space in the half yearly.

Texas ok I will allow them some latitude. God they can afford it and hey maybe it works.

Some how the market must allow for the Public Relations cripple this company is and recognise serious serious cah flow.

Flux