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ESG - Eastern Star Gas

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From memory ESG's volume on friday was around 20million shares, from a quick look on Comsecs charts that looked like the second highest volume ever. Assuming it is some of the 'sophisticated and professional investors' who just bought at .55 that are selling I wonder who is buying???
 
exactly

very heavy trading on Friday

the price is at .67 ????? cant understand it myself. it must be the big boys no other explanation. selling off some of the shares to crystalise and immediate % profit, well you cant blame them.

i dont know who is buying but their could always be some kind of manipulation of the market.

when you hold 90 million shares collectively its not hard to do.
 
Well whoever sold ESG should be kicking themsleves. Santos and deutsche bank buying ESG. Massive volume again it should be a good week for ESG holders.
 
kingcarmleo said:
Well whoever sold ESG should be kicking themsleves. Santos and deutsche bank buying ESG. Massive volume again it should be a good week for ESG holders.
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kingcarmleo - is this just a rumour or fact? ie - where did you get your info from?? no announcements that i can see to confirm...??
 
kingcarmleo said:
Well whoever sold ESG should be kicking themsleves. Santos and deutsche bank buying ESG. Massive volume again it should be a good week for ESG holders.
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Thanks

Prawn
 
ESG's announcements today include response to a an ASX query re price and volume recently. The response mentions a report in todays AFR that Santos has an interest in ESG or words to that effect. ESG denies any knowledge of STO action. This is just from ASX announcements I haven't read the AFR article.
Also from last time I looked around 1600 no significant holder announcemets to account for Fridays 20Million volume or todays 10million. It would be nice if something really good happened in our portfolio, its been so long
 
Here is the source for you Prawn. It is not much of a news story though, although it put a spring in the market today.

 
Australian financial review pg 18 I believe. Does anyone know if we will actually find out who took up the placement? I just hope HGO doesn't sell cheaply if there is a take over offer.
 
In the bi-monthly drilling announcement yesterday ESG said that the third and final vertical production well of its first pilot should go on production today. Not sure if production means 100% water for a period before gas starts to desorb. No doubt the market will be watching for sucess from this pilot. The share price continues to progress upward steadily, however no 'significant shareholder notices have been lodged recently.
 
All quiet on the Eastern Front. So ESG drifts lower over a few days on decreasing volumes. I dont know if we will have to wait for a bi-monthly drilling report to find out how their pilot production is 'producing'.
 
Was just reading an interesting report and thought I'd post some comments

I agree with the author of the reprt that a key milestone for ESG in terms of its asset value was when AGL purchased MPO's Gloucester Basin Assets as this was the second deal in NSW with AGL's purchase of SGL the first

It is interesting to note that AGL paid $2.10 per 2P and $1 per 3P for its Gloucester Acquistion yet it paid $4 per 2P and $3 per 3p for its SGL acquistion. I'm guessing this was because SGL's assets were much much closer to Sydney the key energy mkt though I maybe wrong


Anyhoo interesting read and my conclusion would be that AGL would be the most likely suitor for ESG, even if STO or AOE make a move I think AGL will fight to win and would probably pay as much as $3 for ESG's 2P reserves = $660m based on current 2P


The table above details a number of transactions, predominately focused on QLD. We have taken AGL’s purchase of 100% interest in PEL 285 in the Gloucester Basin, NSW, from AJL Lucas (AJL) and Molopo Australia (MPO) as a basis for comparison. The transaction was for a total of $370m, for certified 2P reserves of 170.2bcf and 3P of 359bcf, which is translated above to a value of $2.11/GJ of 2P reserves and $1.00/GJ on a 3P basis. The sale of this Gloucester Basin asset has positive implications for ESG, highlighting the value of NSW CSG acreage. Based on the AGL transaction, this would value ESG’s current booked 2P reserves at $462m or $0.53/sh, however it values 12-month targeted 2P reserves of 845PJ (net) at $1783m or $2.03, highlighting the substantial upside to be realized by year-end. So while we do not expect the share price to fully reflect this value in the current market, it highlights the upside potential upon booking of reserves and the additional value that could be realized under a corporate transaction.
 
Good points raised there YT, but isn't our 2p target 1300 pj not 845pj? I think STO and AJL may well have a bidding war once ESG has proved up their reserves. Also it will be very interesting to see who gastar sells their stake in pel 238 to, gastar mentioned that there were some multinational companies interested.
 
Tommorrow if my calendar reading is correct should deliver another bi-monthly drilling report. Hopefully this will include news of the production pilot, as the work over rigs should be well and truly finished and all on pump, or flow if all has continued to go well. Continuing good fundamental news plus broker interest will hopefully see our investments continue to grow, and NSW get another energy source happening. Potential future corporate activity might be the icing on the cake
 
Oh noooooo, the heat seems to have gone out of this stock.. More sellers than buyers + I notice the Market Cap is rather high, certainly not in the same league as PES ... :S PES had a MUCH, MUCH smaller Market Cap at this price..

Is $2 and almost 2 Billion Dollars in Market Cap a Pie In The Sky within 12 months ?
 

whatever mate great 1st post

credit suisse now also following our little gaser

http://www.easternstar.com.au/pdf/broker/Eastern Star Gas 21_04_09.pdf
 
kingbrown said:
whatever mate great 1st post

credit suisse now also following our little gaser

http://www.easternstar.com.au/pdf/broker/Eastern Star Gas 21_04_09.pdf
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Great thanks for highlighting this report. I confirm my initial comment on its relatively High Market Cap:

"We note that on a comparatives basis, ESG looks expensive on current prices, however, we believe that ESG is cum a significant reserves upgrade once it is able to establish flowrates on the Narrabri pilot. "

But as it says above, given the future reserves upgrades, that will change.

The report did have the opinion of a Corporate Transaction not happening in the near term, which is a shame considering the $2 valuation was based on a Corporate transaction relative to other such transactions which have occured in the sector. The report did talk of how good a fit Santos and ESG would be though so here is hoping

I'm still counting my pennies from PES gosh that was a ripper ! at .80cents its market cap was under 100 Million $
 
So a nice little jump today on a bit more than average volume. Is this because of STO capital raising as they say 'for other growth opportunities'??? The recent pilot drilling reports said they had to stop dewatering briefly as it was effecting drilling nearby.I wonder if this is indicative of greater communication via the natural bohena seam fractures than anticipated. If this is the case would this allow for wider well spacing in future with subsequent savings on development costs. Any thoughts out there from someone who has done more than high school geology and only worked briefly in the oil industry.
 
Interesting, Santos getting all cashed up and ESG breaking out to new highs today, I know its pure speculation but I wonder as it has been rumoured in the past that STO was looking at ESG, not holding any as I believe MEL to be much better exposure due to comparative EV's but very interesting to watch
 
grace said:
Yes, agree with the HGO point of view. One never seems to get value out of the "indirect" holding. I would prefer to just hold esg.
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Still time to change your mind Grace!

Further to this HGO raised $4M for other projects sending a clear message that they have no intentions to unload ESG
 
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