“The CEO’s statement suggests that farm-out discussions are ongoing with a number of parties at present as the company looks to unlock the value of this potentially significant resource base, taking advantage of lower infrastructure costs,” he said in a note.
“Against this backdrop we see the current share price trading at a considerable discount to risked net asset value (NAV).”
My post from Monday doesn't appear to have been received with any hostility, with the exception of yourself of course. This obviously comes as no surprise as you have Taken every opportunity to insult me and question my integrity since you first started posting. Your hopelessly negative outlook has also been entirely consistent throughout your history, even though the company has changed considerably (in some respects for the worse) during that period.
I have always been willing to acknowledge the company's shortcomings, whilst maintaining an optimistic view. The past failings of the BOD can't be denied but for me, at this price, this company represents a very realistic opportunity for substantial returns. The fact that you can't see this suggests, if we take your sentiment as genuine, that you don't understand the company you claim to be invested in.
Fanning's financial excesses have been well documented here but I feel that this has now been curbed and the company now seems to be run under a more sensible method of financial control. The tie in with PNR has proved successful and they have delivered on their promise so far - this is an obvious change compared to some of SLE's history of delivery on its projects. The company appears to be on a sound financial footing following the last placing, which again is an improvement on how the company has been previously.
But all these changes aside, I feel that the company's history of financial mismanagement has provided ample opportunity to test the financial backers faith in the assets and each time they appear to have given them a ringing endorsement. The fact that there's a rumble of a TO in the background also suggests the value case stacks up, so I think we've every reason to be confident in the upside.
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