I will wait with interest for both STU's 4th Qtr production and...

I will wait with interest for both STU's 4th Qtr production and cashflow, and then their final report.

But even a cursory look at the price of oil in this quarter suggests some impressive cashflow for this $80m company.

Even if STU only pumps another 175,000 barrels this qtr (and that is VERY conservative), with only minimal hedging the cashflow is going to be tremendous. You do the math : )

And with any strong rise in a commodity price, there is a multiplier effect on profitability. e.g With cost of production at $30 per barrel, the gross margin when oil is $80 is $50. Increase the oil price by 50% to $120 and the margin becomes $90, a 80% increase....

Last Qtr, STU received revenue of $17.3m at an average price of A$98 barrel. Their cost per barrel was A$28.16! (see ann. 29/4/2008)

Oil is approx. US$140 barrel today. STU are pumping at least 700,000 barrels annualised.

Without assigning any value to their other interests - such as the potentially company-making Bazzard drill next half, and the refinery project servicing the SA mining boom - Just do the math on their current production (and reserves)....

The market hasn't caught up with this one.

DYOR