OIL - OPTISCAN IMAGING LIMITED

[theflasherman]

Just a heads up on the A$ price of oil. US$36.71 a barrel. AUDUSD is 0.7347. A$ price = $49.97. Quite a considerable increase of the last month.

 

Take note that the quarterlies coming out now for oilers would have netted a lower average oil price in A$ than is currently available which suggests the current quarter could be even better than this.

[chiller]

Hi Flash,

 

Could you please identify a couple of aussie oilers that you think may benefit in the next quarter?

 

Cheers Charles

 

 

[theflasherman]

Hi Chiller

 

AMU looks good. Most of it's costs are in US$ as well which is useful. It is risky because it is a low liquidity stock. If you want to pick up more than 100k or sell 100k you have to be patient. It would have been better to get set around the 45-46c mark that it was trading at earlier in the day. See my posts on AMU for more background.

 

I would recommend TAP as a much lower risk play. They will have their major income contributor, Woollybutt, back online soon and have continuous drilling this year. Most of the wells are low to moderate impact. Look for entry in the mid $1.40s and exit closer to $2.00 is very possible in 6-12 months time. The price has recently come off quite a bit. This is a good time to enter when a stock is unfashionable. UBS Warburg has a $2.00 price target on it and a buy recommendation.

 

If you can get into INP in the low 60s then I would recommend it. It is not yet a producer but has a high impact exploration programme later in the year. No hurry on this either.

 

Keep an eye on COE. If their current well is succesful it will be good for the company. But it will pull back afterwards given their next well is much later in the year. Just one to keep an eye on for now.

 

I like ROC but is more of an exploration play than a production play.

 

Hope this gives you a few ideas!

[chiller]

Thanks for that Flash. http://www.sharescene.com/html/emoticons/king.gif

 

I am not yet in a position to get into anything at the moment so when I read your post about opportunites in the coming quarter I thought I would ask in the hopeful anticipation that I will be able put some dough into oil soon.

 

I have been watching COE (a swag of recent announcements) and INP but I will read up on the others you suggest.

 

As always I find your posts very informative, thanks kindly.

 

Cheers Charles

 

 

[theflasherman]

Over the weekend there was an attack on an oil terminal in Iraq which accounts for 85% of Iraqi exports. Fortunately, very little damage was done and exports are already likely to be back online. Unfortunately, there was even more lives lost in the region. Suicide bombers were blamed.

 

Overseas markets have not had the chance to react but I'm thinking that the security premium in oil prices will increase and would not be surprised to see oil prices rise tonight, ceteris paribus.

 

As an aside, perhaps I've just got a touch of social responsibility at the moment but it is interesting how some of us are profiting from the misery around the world.

[chiller]

Hi Flash,

 

You raise an interesting philosophical concern about profiting on the back of 'misery around the world'. I see this as a fundamental dilemma for the investor and it really is a question of where you draw your own line morally/ethically. Perhaps a metaphor to the question you raise is MacGill withdrawing from the tour to Zimbabwe. As he put it it was his own personal choice that for whatever reason he had drawn a line in the sand and Zimbabwe Cricket/Politics had crossed it. Of course MacGill's response created the opportunity for Cameron White to be included in the touring squad. In circumstances such as war and civil dispute it is important to ask the question.

 

Cheers Charles

 

 

 

 

[theflasherman]

Wow, what a start to the morning! A lot of oilers down today. Illogical given A$ weakness and oil price strength and a good time to pick some up IMO.

 

Look out for COE drilling reports over the next couple of days. Hydrocarbon shows, which is probably to be expected given the proximity to Walkillie. The test will be if can they get the bugger to flow and in what quantities. Thickness of sand will also be important. Small parcels have sold it down to 22c. Upside to 27c on success IMO.

[Innocentone]

hang in there guys......don't panic!!

[The_Muns]

Looking at Asia's growth , the increase consumption of, especially China and India, Oil is going to be very bullish over the next few decades.

 

But I feel there could be more speculative money made in the alternative energy market as new technology suddenly becomes more afordable in relative terms.

 

Just researching and finding the winning tech/company IMHO.

 

Wind is looking very promising at the moment, but tidal power has alot to be said for it, if it could efficently resourced.

 

But their are always those old stories of catching the power of the complete atmosphere which were happy buried by the US in the early days. (yes they were making too much money on oil.

 

Interesting times ahead.

 

 

[andy20020]

muns ... good strategy ... shale oil - you know much about it??? I also see the idea of using ethanol has popped up and I have a recollection there's an Oz trial of some size going on - here we are - www.privateforestry.org.au/eth_tim.htm

 

Regards