Big Star’s Shares Slipped On ASX – What Investors Need To Know

  • Apr 29, 2019 AEST
  • Team Kalkine
Big Star’s Shares Slipped On ASX – What Investors Need To Know

On 29th April 2019, Big Star Energy Limited (ASX: BNL) announced that it has appointed Mr. Trent Spry as an Executive Director. Mr. Spry brings to the Board significant ASX corporate experience, expertise in geoscience and exploration as well as significant recent experience in the USA.

Trent has experience of over 20 years in the upstream oil and gas industry in exploration, appraisal and development. He is the holder of a Bachelor of Science (Hons) from the National Centre for Petroleum Geology & Geophysics, University of Adelaide and is a graduate of the Australian Institute of Company Directors.

The company has also announced that its wholly-owned subsidiary, BNL (Percy Creek) LLC, has entered into a farm-in and option agreement with Percy Creek Partners LLC (PCP) to earn interests in 5,228 gross acres of contiguous oil and gas leases situated in Wyoming, USA (Farmin Agreement).

The committed work program under the agreement in the Percy Creek Forward Work Program is expected to cost US$275,000 and includes 2D and 3D seismic acquisition and processing over the prospects and pre-investment in drilling permits and planning to enable a possible 2019 drilling date.

Big Star Energy Limited has no working interest in the project currently. Under the terms of the Farmin Agreement, Big Star will acquire a 20% working interest in the leases on completion of the seismic acquisition and processing programme and the remaining 80% working interest on the exercise of the option.

The consolidated entity derives its revenue primarily from the sale of oil and gas produced in the USA. During the period ended 31 December 2018 and 31 December 2017, external sales of oil and gas were made to customers solely located in the USA. The revenue stood at $50,249 in FY18 as compared to $345,509 in the prior corresponding period of FY17.

The company has reported a total comprehensive profit for the year ended 31 December 2018 of $46,762,314 as compared to a loss of $2,758,120 in 2017. The profit was primarily on the back of the transfer of $48,158,553 to the creditor’s trust as a result of the effectuation of the DOCA on 23rd March 2018. The shareholders of the company approved a recapitalisation proposal on 23 January 2018, with the capital of the company subsequently consolidated on 29 January 2018. As of 31 December 2018, the group impaired the value in use of its oil and gas properties, writing their carrying values to $51,006.

On the price-performance front, at the time of writing, the stock of Big Star Energy Limited is trading at a price of $0.005, down by ~28.57% during the day’s trade (29 April 2019 AEST 03:45 PM). The stock has generated a negative return of 36.36% over the past six months. Its 52-week high price stands at $0.017, and 52-week low price stands at $0.005, with an average trading volume of 186,223. The stock is trading at a PE multiple of 0.040x, with an EPS of 0.195 AUD.


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