2014 Fin Year

Whilst long term holders understandably disappointed at the lack of drilling new prospects in the year the GGE SP is up when we look at the one year chart to the right. Some new holders during the period could have benefited and any holders of peers such as the cousins would have been miles ahead had they switched some $$ across. Most oilers I watched in the period are down.

Much is made of drilling delays, some understandably. Achievements are mainly in getting infrastructure in place:

• Desiree Production Facility
• West Klondike Facility
• Resolving legal issues on Seismic use
• Resolving Leaseholder issue

Overall the sector sentiment has been low with most action in highly speculative mineral explorers and technology, O&G Juniors moving form exploration to production have been marked down as production results underwhelmed initial expectations and provided numbers to quantify value. Potential reserve valuations for producing companies are largely ignored in valuations.

Oil and gas prices are at high levels, this quarter average is around $109/bbl (brent), $4.95/mcf (gas) but on most forums there is a low interest in discussing the oilers.

At some point I think the sector will pick up but who knows when. Meanwhile we wait for the spud announcement but for me the important catalyst is understanding how and if the recent interest in Louisiana will flow on to the Aus companies operating in the region. A good story is unfolding in the region which is largely overlooked at present.

Found a good quote: ‘Discovery consists of seeing what everybody has seen and thinking what nobody has thought’, Albert Szent-Gyorgyi,


Hopefully 2015 will see a bit more activity and discussion, this year has been a tough gig.

All opinion only, Cheers