Smart@rse!!!!But seriously, you've got to be happy with those...

Smart@rse!!!!

But seriously, you've got to be happy with those numbers. Production climbing rapidly, every class of cost falling sharply (except for tax - lol), bringing an increasing level of profit with every additional barrel delivered.

The hedging has supressed the final profit - it would have been spectacular if there was no hedging. But that's the nature of the beast - if oil was trading at US$15 we would be over the moon with STU's hedging program. The good point is that production from additional discoveries (ARWON a certainty in my opinion and then Jezabeel funded by BPT) will come in unhedged. That means that it could be making A$30/b after all costs.

This clearly justifies STU's tag as the leading junior in the Cooper.

I don't like to treat junior explorers/producers the same way as the large producers but even with the hedging program somewhat suppressing the company's earnings, it's on a P/E of just over 13. Very cheap for an oiler in the current oil price environment and an explorer with very good prospects to boot.

I'll be buying more when I have some spare cash.

Cheers

Badfish