Ann: Southern Cooper Basin Gas Project - Update, page-25

Hi Moneytree,

In normal times, I would have expected 12.5 cent too. Its bloody good news.

However, with the turmoil in energy markets, people are very risk averse, especially when it comes to small cap energy stocks. Also, anyone on the sidelines with some cash to spend, quite rightly, will look to buy some safer propositions in the mid-cap area - think BPT, DLS, SXY - if they were convinced the oil price cycle was about to turn.

The lesson I've learnt from the recent energy market plummet is the importance of staying on top of the energy stocks, but also of keeping a chunk of assets in cash (i.e. investing actively without putting all your cash down). I've been taught this lesson over and over, to be honest (think: GFC) but I never seem to have the willpower to keep a sizeable reserve of cash to exploit such opportunities. Perhaps with a bit more age I will increase my mental fortitude, and my cash reserve.

I think once things settle down with oil, and positions are re-taken in the energy sector more broadly, STX will get a lot more attention.