I have held AED since Oct 2006 so I have a good understanding of the history. I don't rate their level of disclosure highly. However,anyone who seriously believes that they have already production tested these wells when drilled and have not disclosed this but some how the market has found out about it and factored it into the SP is frankly delusional and needs to seek professional advice.
The market is very skittish ATM and hates uncertainty and where that uncertainty drags on like it has in the Brunei exploration program holders lose patience and sell out. It doesn't mean that these wells, especially Lempuyang, are dusters. Every indicator about the last well points to it being a success and if you'd rather ignore that bcos the SP has gone down then you are trading on emotion rather than facts. Brunei is a proven HC province and IMO was a good choice by AED.
Anyone who thinks that the market always gets it right has learnt nothing from the GFC.
I attended the AGM and spoke with some of the directors and exploration staff and they are very confident about this region and what it will mean for AED's future.
ANZ
AED Price at posting:
41.5¢ Sentiment: ST Buy Disclosure: Held
