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Hi everyone at ASF,
Greetings.
I have just looked through the STO thread and there was an interesting comment made by a fellow member about the share movement pattern of OSH and STO.
STO shot through the AUD$15 price and I thought if that is so, my shares in OSH (yes, I do hold OSH shares) would be up too if the similar share price pattern holds true.
YES! It does.
I have found out a few facts from their Annual 2008 Report, some points I would like to highlight here (please make your own decision to invest):
From my glean through of their Annual Report 2008, I gather:
1) They claim that company is in the best economic position in 8 year history (introduction of the Performance Summary by Peter BOTTEN)
2) Record NPAT of UD$240 million dollars, 70% higher than 2007;
3)
PNG LNG project progress to final investment decision "Most robust greenfields projects in the region" – key decision in late 2009, first gas produced supposedly in 2013/2014. It seems there are good market fundamentals and there will be key market players ready to buy the products, particularly from Asia Pacific region. Most importantly, there is continuing support from PNG Government.
4)
Strong cash balance with USD535 million cash. (Line of credit secured for US$435 at peak of financial crisis at good terms, demonstrating support for company).
5) Declare a
final US$4 cents dividend per share, with a DRP program in place.
There is currently a group liquidity of US$955 million at end of 2008
Check this out – they say in the Annual Report 2008 that there is
NO HEDGING in place in 2008
NO hedging – this means that any further UPGROWTH in the price of oil (POO) will have a POSITIVE impact on OSH share price.
As of end of 2008, 2P reserves was estimated @
66.9 mmboe.
In 2009, OSH target for 8 to 8.3 MMBOE.
2009 budget will focus on:
a) The need to ensure the LNG project gets the maximum $$$ it deserves
b) A Balanced drilling approach to generate cash flow.
c) It's all about
PRESERVING LIQUIDITY to ensure all exploration and development expenditure is funded from operating cash flow, to ensure the LNG project has $$$ towards viability
Key things to look out for in 2009:
1) 2Q 2009: Sign HOA, BCA,
1.1 2Q 2009: Commence early WORKS
1.2 2Q 2009: Contingent on BSA & HOA
1.3 3Q 2009: Receive EPC bids
1.4 3Q 2009: Finalize CAPEX
1.5 4Q 2009: Finalize Investment Decision
Beyond 2009:
1.6 2010 Commence Construction
1.7
Year 2013: First LNG Sales.
Just some informationto share with everyone.
Have a great weekend and Happy Labor Day to everyone from Western OZ.
agathos.