lol the hedging is for just over 2 million barrels, and aed have already produced half of that.
aed were extremely smart not to hedge more when oil was $70 - they are in the best possible position.
refer back to the last announcement where they said cost effective remedial action will increase current production(6000 - 1000 bpd) by a factor of 2-3x
so let's say 15,000 bpd conservatively.
+ puffin NE will come on stream by the end of the year adding 20,000 bpd - however let's be conservative again and say 15,000 bpd
so aed will be producing at least 30,000 bpd by the end of the year
let's say aed's share of that is 40% after joint venture - i.e. 12,000 bpd or 4.4 million barrels per year.
aed's operating costs were about $30 bpd in the first quarter - and this will decline with higher production given the large proportion of fixed costs.
assuming oil prices of $100 per barrel, that would give aed operating profit of $70 per barrel or $308m per year. Given 150m shares on issue, that puts aed on a 2x P/E multiple
so following the joint venture AED will have 1. zero debt 2. cashed up 3. experienced jv partner to significantly increase production
the potential here is phenomenal guys
AED Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
