Eric, any news soon?, page-11

Confidence is a major issue for BRU.  I’ve held shares since 2013 after seeing the potential for oil and gas in what was an essentially unexplored basin.  Ungani was the goldilocks field that was going to produce at 3000 bopd.  Reality check, almost 6 years later we are producing around 1000 bopd and they still don’t seem to have a good understanding of the Ungani field given the failure at UW, the flow rate and oil water contact level at U4ST.  Also very quiet on the U5 front.

When Eric then came out on with BRU 2.0, with focus on oil production at Ungani I increased my holdings to the point I’m now massively overweight in BRU and it is by far the largest position in my portfolio.  Thought this was going to be a significant turning point.  However BRU has managed to do the one thing they are very consistent at, over promise and underdeliver.  

After what was said during the roadshows I now find myself questioning the competence of current management.  I know some will be thinking that Eric has a done a great job given the ROC udeal but the truth is that deal was required to keep Bru treading water and to secure Eric’s pay check for a couple more years.

Personally I don’t think a UC gas farmin will solve all of BRU’s problems.  Given the lack of infrastructure in the area I suspect any farmin would be discounted.  Also realistically how long would it be before they actually generate any real revenue and would they have the capital to get through to the commercial production phase?  Look at the money and time SXY has spent developing their gas business.  Surely Bru will need to be a serious oil producer in order to help fund any gas development through to completion.  As a result they absolutely must find an additional oil field this year.  

Apologies if if this post comes across as being overly negative but I am yet to sell a single share.  I’ve just come to the realisation that I find myself thinking of the word “hope” to often when it comes to this particular investment.  Until Bru can show the market it can build its cash reserves through actual production and not the sale of assets I don’t think the market will ever take them seriously.  

Hoping for a clear path forward to be presented in the next month or so with goals that will actually be delivered!

GLTAH