Well-positioned to ride the storm

Pitt Street Research has today released an updated report and valuation in the current COVID 19 environment on Brookside Energy, access to the report via the link at the bottom.

Valuation range of A$0.019 – 0.022 per share
We recalibrate our valuation to factor in the current
weakness in oil and gas prices and re-value BRK at A$0.019
per share base case and A$0.022 optimistic case using a
DCF approach. We believe BRK’s share price has moved
lower with oil prices since early March 2020 and there is
significant scope for re-rating driven by an improvement in
oil price sentiment, better flow rates from existing wells
and higher acreage prices.

Found this interesting - near term divestment? Presuming any sale will be profitable to amount paid for the lease and associated costs

Third, the company has decided to harvest some cash flow from low-risk
wells that have been drilled within its acreage position. BRK currently has an
interest in a number of producing wells that are active and/or set to
commence production. Notably, lease operating expenses (including fixed
and variable operating costs and severances taxes) amount to ~US$7.50 per
barrel of oil equivalent for this production stream, providing a solid
operating margin even at the current oil spot prices.
We believe these timely and useful measures will prepare the company to
tide over the financial shock and at the same time ensure that it can
leverage opportunities when the market starts recovering.

Much of it is already understood for long timers here with some updates regarding project Orion worth also reading.

Even in the current environment the SP is largely undervalued and discounted....

https://t.co/YaAkLJtULI?amp=1

Keep well Cheers Paul