In the end Mowibble its about identifying a company that has the projects that can make itself cash flow positive, so it doesn't keep tapping holders for funds. The reason why US play are the flavour of the month is the near parity of the AUS and US dollar and the reduced costs available for workers and equipment, nearly half the cost of drilling in AUS. The US has some great low risk high impact plays and solid markets for the O/G, smart companies are taking advatage of that as US juniors have not got access to funds. I expect brian to come in at 10 to 15 mmcfd wich in gas alone should mean US$600,000 plus condensate US$200,000 per month to FUT, WHich is around AUD870,000 to fut per month or 10 mil p/a with other wells to be drilled if they drill even 4 next year fut could be earning 4 mil AUD per month or 36 mil a year quite a jump from where they are now. EVEN on a low P/E of 4 values fut a 3.5 cents. Its not easy getting over the number of shares on offer I agree but the leverage here is huge, 2 mil shares bought for .008 even allowing sp to go 2 cents is a return of 24 thousand. And FUT will be rerated no company earning cash and developing a field will be left at a low sp and thats not even factoring in a traders push where profits could be taken. With the money being earnt open a lot of doors for FUT in future projects in the end its about doing risk metrics on Atchoa. And atchoa is a low risk high impact play but if to many sares are your concern I sugest looking at the other JV partners a lot less shares but only 25% of the play.
FUT Price at posting:
0.8¢ Sentiment: Buy Disclosure: Held
