The bulk of the hedging washes out by 30th June next year. Of...

The bulk of the hedging washes out by 30th June next year. Of the 540,000 bbls hedged this calendar year the average price to be received is around A$40bbl-total production for the year pre Arwon and any other fresh discoveries should be inexcess of 900,000 bbls.
On this basis EBIT could be around $30m (the company has indicated it is currently generating net cash flows in excess of $3m per month-and that is before revenues start from RSW,Derrilyn and Harpoono!!!).
Add to this further discovery revenues (Arwon?).
Yes, the hedging is a pain in the backside in the short term, but the company stacks up very impressively on fundamentals.
In comparison with ARQ, both have a strong technical team and a very detailed knowledge of the basins in which they operate. ARQ has a stronger earnings base per share at the moment, STU has greater 'impact' exploration exposure.
These two, plus AWE and HDR would make an excellent petroleum portfolio in my opinion.
Cheers,TAS-I hold bucketloads of STU and am therefore extremely biased.