I agree that BRU should out perform especially in the short to...

I agree that BRU should out perform especially in the short to medium term when known positive events should increase the SP .
Your chart highlights how leveraged to the POO BRU is .
The SP of most small Aussie oil producers have similar performance as BRU over the same period .Some better , some not as good but driven by the POO .
Imo it highlights the need to drive the operating costs as low as possible to maximise the cash flow from every bbl produced from Ungani so there is enough cash to find and develop more new oil than is sold .
I am talking about Broome and 5000 bopd .
It was passed over in the recent brokers report . All the analysis was based on a max production rate from the field of 3000 bopd .
There has been a deathly silence from the company re Broome despite what they said in their Plan .

Bring on a fid for Broome . Bring on a plan to fast track it .
Crunch the numbers , it makes the business self funding for OIL drilling .
The planned $20 million drilling campaign funded mainly by farm outs is paid for just by the Increased MARGIN over a year shipping
5000 bopd to Broome .
The trucking cost to Broome is said to be $10 per bbl less than to WBH but Broome port and other charges reduce this to only $6 per bbl .
How ever all the other costs of the business will not rise proportionately with the increase in the production from 3000 to 5000 bopd .

$20 million equals $59,000 per day for a 340 day year . Or $ 11.80 per bbl at 5000 bopd . I think the increased margin would be more than this .

The increased operational flexibility , the great reduction in top management time spent chasing investors and farm in possibles and the ability to keep their knowledge base to themselves is hard to quantify but is extremely valuable .

I truly hate to upset my BRUthers but I definitely think that Buru should not do any farm outs this drilling season and what has happened to their expected cash flows over the last 3 months convinces me even more so .

They need to put the full financial and management resources of the business behind finishing the development of the Ungani field and Fast Tracking a Broome export terminal before they go wildcatting .

I know the cash will be very low before payment for the next oil shipment is paid for , however there are very strong cash flows after that .

I have a lot more to say about this but farmers don't work 5 day weeks and I have to go .
I know this is a contrary view to most of my BRUthers , I hope no one is too upset , glad HC does not have TDs .

gltah . No matter which way the cards fall we are in a good one .