what is best oiler on ASX?, page-16

AOK
1. Low cost shallow vertical driller in the Mississippian Lime region.
2. 80% hedged at >$80 until mid 2016. Making money and will continue to do so in medium term low price environment.
3. Healthy balance sheet. Cash and virtually no debt.
4. Down an obscene 60% since POO drop despite hedging.
5. Directors have been buying up.
6. USD earner benefiting from AUD/USD conversion outlook.
7. Best ticker code on the ASX ;-)

Before POO collapse, I valued the share price at 48c using a DCF methodology. I plucked my growth estimates from the average forecasts of covering analysts (currently only 3) and a discount rate of 8% (which is very conservative). At the time of valuation, the share price was 30c and oil was $100. Share price now 11c.

So if you believe in a rebound in POO, then this could/should be a triple bagger or more.

If you believe in a rebound that is