As with all major drilling campaigns the price will slowly rise up until spud date. This stock will grow in popularity as we get closer to spud. Especially as it is in the Canning Basin. Very prospective and underexlpored. Those following NSE will naturally be attracted to this stock.
Cash in bank is $45.5m and there are about 182,769,000 shares on issue. So that is cash backing at 25c. So as yet there is still very little to nothing being valued into exploration upside.
It is currently only being followed by those who have been referred to it or in the know, however the Hotcopper faithful may soon follow in the next couple of weeks.
So whether to enter now or not really depends on your trading strategy. If you are happy to get in now and get a cheaper price that would be my preference. Or a little later at a higher price, which is still fine. I believe that there is now a time factor attached to this stock price as we get closer to spud. Especially as it is on the back of such a large and prospective drilling campaign. In the event that we find what we are looking for then well that is another issue altogethor, and the price would be signifiacantly re-rated.
They are spending upwards of $20m on this campaign, for which they have conducted extensive analysis and groundwork. Including both 3D and 2D siesmics. I think having their own rig is great news as they have plenty of time to prepare the rig and crew for this specific drilling campaign only. It really looks like this campaign is a big deal!
Cheers
BRU Price at posting:
26.5¢ Sentiment: Buy Disclosure: Held
