AED 0.00% 14.5¢ aed oil limited

not good news by andrew henderson

  1. 945 Posts.
    You all would have seen the trading halt on the AED shares today.
    As I previously stated AED has received various bids, but the problem is that more than half of AED's assets are going to be sold for a very cheap price. Share holder value is going to be significantly eroded. I understood that more than 50% of assetts are going to be sold for about 400M USD.

    AED's current debts are of the order of USD 300Million including that of the Westpac bank and the CBA + the FPSO provider Front Puffin + recently failed south development cost of USD 80Million. Though AED will have retired its debts, AED's generated income for Share holders is going to be pity.

    AED also has hedged 2.3Millon barrels of oil at USD 70.00 and have so far produced only about 1.2M barrels. What this means is that AED is not going to get any joy out of the current oil prices.

    According to UBS, the target share price with all assets in place was 1.10, but with the current asset sell of, god knows what its share price would be.

    Thats all for now.
 
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