where to for sxy, page-5

With the price of Brent crude sitting on $112 a barrel, there has never been a better time to be holding a Cooper basin oiler.

Ian Davies, the CEO, has targeted one million barrels of oil-= net to Senex- in the next financial year, and barring another one in twenty year flood, this figure could be conservative.

SXY are also gradually proving up their coal seam gas assets, which are going to be of significant value to any company interested in taking them out.

The real unknown is the value of the unconventional gas acreage, which at the present time is unquantifiable, although going by what happened in the USA, any shale wells booked and proven up as reserves, could shoot SXY into the bright blue yonder.

The negative risk is the amount of cash the company will burn drilling unconventional gas wells, hence the latest capital raising and dilution. Also, to date they haven't fracced and flowed any unconventional well at a convincingly commercial rate, although I understand this might be because of the heavy gases and condensates in the reservoirs.

The CEO buying on market recently gives me every confidence we are on a winner.