It is worthwhile noting that the Bazzard farm-in was announced to the market on 17th August 2007. This was months BEFORE the massive increase in production profile from Worrior 5 and 6...
11th Sept - Worrior 5 and 6 wireline logs were announced,
22nd Oct - 2,500 BPD added to Worrior production
The conclusion one must draw from this is that STU must have thought they could fund Bazzard out of debt funding and existing cashflow BEFORE they struck the Worrior 6 gusher. Events subsequent to that just mean they will pay for the Bazzard farm-in and drill costs much faster...
Since then, Worrior has been producing at 4000 BPD since mid Dec (see 2nd QTR report 16/1/2008) STU's share of which is over 1 MILLION BARRELS ANNUALISED), and the $A oil price has appreciated considerably. Also noteworthy is the fact that the extra production is incremental to the hedge book.
And on top of it all, Bazzard may even be a company-maker...
But if you do consider buying STU, do so for the existing reserves and production profile...
DYOR. I have.
STU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
