what downside, page-4

As I see it, risks are:

Deal is rejected by Chinese Govt or NT Goverment for some reason.

Lower oil prices, but the company is currently getting US$70 a barrell and it is still profitable, so would have to be a big drop. Unliikely.

Substantial increase in production costs.

AUD appreciating significantly against the USD. Say above parity.

Current wells stop producing and new wells have problems. Although, current production seems to be about 7000bpd and AED is forecasting an improvement in production.

Poor management... maybe.. but there aren't a lot of options out there at the moment.


As for the tax, jto, talk about AED paying 50c in the $1 as capital gain is utter nonsense!