stuart fundamentals redux At 75 cents a share, Stuart Petroleum...

stuart fundamentals redux At 75 cents a share, Stuart Petroleum is as undervalued now as it was in July 2003, when I originally bought in at 28 cents (check the records on the Aussie Oilers board in Yahoogroups).

Back then, Stuart had 60 million shares, a 28 cent price, four PELs and 1.2 mmbl in Acracia. The market valued them at $17 million ie A$14 NPV for the oil, with the PELs worth nuthin.

Right now, Stuart has 60 million shares, a 75 cent price, 4 PELs, 1.2 mmbl in Acracia and 2.4 mmbl in Worrior. The market values them at $45 million ie A$12.50 for the oil, with the PELs worth nuthin.

As to the values of PELs, note that companies volunteer to do approximately $2m worth of seismic and drilling to get a 25% share in one of the Cooper Basin PELs.

Worrior coming in at 3.4+ mmbl recoverable - or double the pre-drill estimates - should also increase the value of the PELs, because it shows Cooper Basin wells have upside risk.

Buy with your ears pinned back.