Jojo,I am suprised you have not yet assigned STU to your dog...

Jojo,

I am suprised you have not yet assigned STU to your dog house. The whole Padula/Dalray prematurely counting fiasco has been a right...fiasco, in my mind. I hope Tino learns to keep his imagination to himself in future.

That said, STU has a lot going for it, and we have a lot of good news to look forward to. If the poo keeps creeping, as it has, then perhaps delays in getting new wells on line is not such a bad thing. Dry appraisal and/or development wells however are unequivicably BAD.

At least the presentation gave a revised committment of end June for the refinery sanction (vs original April) whilst importantly and notably not changing the Q1 07 startup schedule.

One really big question comes to my mind from the presentation. Why?

Given STU's cashflow (esp post hedges and with new wells due to start) why do presentations in London?
1)Surely STU isn't after raising equity? they have shown strong philosophical aversion to doing so.
2)If they were, why London, when STU is probably underpromoted in Australia, and Cooper Basin coys are generally well supported locally?

Another topical question someone may have a view on. How is BPT going to bring STU into line on future independent gas infrastructure in the Cooper. It must be in their interests to do so. They may be able to buy 19.9% of STU, but it would be pointless, as STU board seats are unlikely to be for sale.

I am as interested in how STU tackles their sleeping gas/condensate resource, as in their international expansion. A higher Eastern states gas price first would be good, and oil targets must currently have first priority, however if there is going to be a GOG/BPT gas development in the SW blocks, seems STU interests may be served by participation.

Lets hope STU starts delivering again.

Entropylord