unloved and undervalued, page-3

Hi Evena,

I think you are right we have to be a little patient with Stuart , and I am sure the market will catch up.

look at the following numbers:

STU (Stuart Petroleum)

last share price: $1.14
Share on issue: 63 million (only)
Market Cap. $72 million
Cash in Bank $13 million
No debt
Last Divident $0.02 per share

Oil Production 2900 bod
Production forecast 800-900000 bo/year
Production cost $28 per barrel

Loss of revenue due to hedging $15 Million per year


Oil reserves 3.6 million barrels
Oil inground @ A$30 = $108 million
Cash in bank $13 million
Loss hedging $15 million

Total value on oil reserves $106 million
value landholdings $ 10 million
Total value $126 million
share on issue 63 million
share price $2,00

So here we have a share price of $2,00 for Stuart based on current reserves.
Can you imagine how the share price would jump if they find more oil with their curent 14 well drilling schedule.

The Padulla discovery of more then 1 mmbo recoverable has given much needed replacement of reserves and probably more will follow.

Keep also in mind the Stuart is making more then $100,000.00 per day profit by pumping 2900 bod.

Each well the drill on their own without joint venture partners will be paid for from two weeks oil production!!

Not only is Stuartfocussing on oil , at the moment they are doing a feasibility study for a diesel refinery in the Cooper basin as an add on value for their oil.

So I challenge anyone who does not agree with the fact that Stuart is undervalued.

My figures tell me $2 per share with current oil reserves and any additional oil or gas find will push this higher.

jojo