ESG - Eastern Star Gas

[Dukey]

Alot of CSG'ers still doing very nicely recently thank you very much!
(What bloody recession?????????????)
ESG still more highly valued $/2pPetaJoule than most (more advanced?) but performing well.

MEL is charging, BOW and MPO are holding up nicely after some recent gains.

AOE, COI, ICN, WCL have all moved up and seem to be holding well.

Only BUL is lagging - probably because their tenements are more remote (maybe second rate?) and they are very slow to prove up any gas. My theory there is they are waiting on other companies to explore nearby, then BUL may ride their shirt tails based on 'near-ology'. Or maybe just waiting for t/o action?

My strategy - pick a few goodies, give them room to move, and wait!!
Next on my list could be BOW - if they hold current levels a bit longer.

Good luck all. - dukey.

(holding MEL, ESG, AOE, MPO, BUL of the csg'ers).

 

[grace]

Alot of CSG'ers still doing very nicely recently thank you very much!
(What bloody recession?????????????)
ESG still more highly valued $/2pPetaJoule than most (more advanced?) but performing well.

MEL is charging, BOW and MPO are holding up nicely after some recent gains.

AOE, COI, ICN, WCL have all moved up and seem to be holding well.

Only BUL is lagging - probably because their tenements are more remote (maybe second rate?) and they are very slow to prove up any gas. My theory there is they are waiting on other companies to explore nearby, then BUL may ride their shirt tails based on 'near-ology'. Or maybe just waiting for t/o action?

My strategy - pick a few goodies, give them room to move, and wait!!
Next on my list could be BOW - if they hold current levels a bit longer.

Good luck all. - dukey.

(holding MEL, ESG, AOE, MPO, BUL of the csg'ers).

Yes, esg look overvalued - but are they? If you look at their recent drilling, I certainly can't fault them around that Narrabri area. Perhaps they will surprise us with that reserve upgrade. Holding and not selling until 90% have gone on takeover. (please don't take me seriously - I don't mean to start any rumours here). Holding for the eventual takeover and buying on any weakness (please).

 

[Nero64]

MEL is charging, BOW and MPO are holding up nicely after some recent gains.

AOE, COI, ICN, WCL have all moved up and seem to be holding well.

Only BUL is lagging - probably because their tenements are more remote (maybe second rate?) and they are very slow to prove up any gas. My theory there is they are waiting on other companies to explore nearby, then BUL may ride their shirt tails based on 'near-ology'. Or maybe just waiting for t/o action?

My strategy - pick a few goodies, give them room to move, and wait!!
Next on my list could be BOW - if they hold current levels a bit longer.

Dukey what do you think of VPE?

Its partnership/stake with BOW looks promising.

I think it is slightly undervalued. Could be a breakout soon from its sideways movement. I think it has better potential than BUL and WCL based on its location, tenements and cash on hand.

 

[Dukey]

Dukey what do you think of VPE?

Its partnership/stake with BOW looks promising.

I think it is slightly undervalued. Could be a breakout soon from its sideways movement. I think it has better potential than BUL and WCL based on its location, tenements and cash on hand.

Havn't honestly had a good look at VPE. from memory they have more conventional oil/gas?? is that right? Nothing stood out when I had a quick look a year ago and have been looking elsewhere since.
Maybe I should look again.

 

[philly]

Hi Nero64,
first of all I hold VPE. VPE has oil / gas interests in the Cooper Basin and is generating income from various oilfields there. It also has a 45% interest in the Don Juan CSG with BOW 55% and operator. It also has a 20% interests in 2 further CSG tenements in QLD. As well as listed shares there are options listed with an exercise price of 25 cents they expire in 2010. IMO there is some upside with the SP. VPE is very much ignored by the market and if people are looking at oil/gas and/or CSG then VPE should be considered but as always DYOR. I hope this is of assistance.

 

[johannlo]

The thing I like about VPE is their relative lack of debt. The VPE thread also has some interesting facts about the people involved (major shareholders, consultants involved in major projects etc.) which unfortunately I'm not knowledgeable enough about the industry to verify.

 

[StockPiles]

Lets all chat about Eastern Star Gas (ESG) on this thread again

Holding its price well considering the recent accross the board selling pressure.

 

[pointr]

Fully agree about keeping on subject with ESG, but a quote from Santos CEO David Knox from June09 'Smartinvestor' magazine. "We're also very focussed on developing our Gunnedah acreage in NSW. We're planning 20 wells this year to prove up that acreage and see how much merit it has. It's very exciting; it could potentially supply the NSW power market and even if we could find a site, both the power market and LNG. But first we have to prove up reserves and that is what we're doing this year. Santos is ESG's next door neighbour in these CSG tenements.

 

[StockPiles]

Eastern Star Gas does not own 100% of their acreage though, I wonder if that is a deterent for any potential take over ???

 

[pointr]

In addition to the takeover potential, which may or may not happen I suppose there is always the other alternative, that of becoming a long term energy producer(give or take plenty of capital raisings) in Australias most populous state. I live near Newcastle, I dont know how big a site an LPG plant needs but there are some spare hectares where a certain steelworks once stood,right beside a harbour.

 

[StockPiles]

SANTOS released a statement saying they were keen to capitalise on the NSW Market and further stated they have enough gas to supply the market.

ESG will hopefully become a part of that plan

 

[StockPiles]

ESG went from 79 cents to 96 cents then BACK to 79 cents again !! More sellers than buyers, frustrating the way this stock is trading maybe it is plagued with short sellers manipulating the price

 

[pointr]

ESG jumped pleasingly to close at $0.85 a rise of nearly 12% on the day, I think its close was the high for the day. Volume was about twice daily average. They are due to release another bi-monthly drilling report, STO also released a drilling report today from adjoining PEL's. MPO also jumped 10% today so dont know if it is some general interest in energy / CSG or individual companies attracting buyers interest. I confess to holding ESG and MPO in amongst several others in the red

 

[Mad Mel]

ESG jumped pleasingly to close at $0.85 a rise of nearly 12% on the day, I think its close was the high for the day. Volume was about twice daily average.

Somebody bought a block of over 2M shares at close, and if my memory serves correctly, about 4M shares in total were bought in the last hour before close. Pure speculation on my part, but I smell something cooking with ESG. And yes.... I do hold ESG (as of 11:00 this morning). So I might be smelling my own wishful thinking.

 

[philly]

good hike in ESG SP today. Seems to be more interest CSG sector at the moment. Interesting to note that Korean Gas has purchased a 10% in BUL today. Lets hope for bigger and better news soon. I hold ESG & BUL.

 

[StockPiles]

good hike in ESG SP today. Seems to be more interest CSG sector at the moment. Interesting to note that Korean Gas has purchased a 10% in BUL today. Lets hope for bigger and better news soon. I hold ESG & BUL.

ESG don't hold 100% of their tenements though, that might put off a potential buyer .. HUGE rally going on at the moment and ESG opens lower !! Such a frustrating stock when compared to say RFE !

Having a relatively large Market Cap might explain the lack of enthusiasm though ...

 

[BowCorp]

Reading the recent ESG drilling reports, the potential results for the lateral well pilots look very promising. The advanced drilling techniques being employed by ESG to increase flow put them ahead of alot of the other junior explorers (that's a relative term - in comparison to the likes of BG, Santos and Origin).

I'm hoping for a takeover - simply for the $$$, but it doesn't seem likely. I get the feeling that ESG might be in it for the long haul.

 

[pointr]

A very positive announcement today on the performance of the multi-lateral production pilot
.http://www.asx.com.au/asxpdf/20090618/pdf/31j3zfthcp2vjx.pdf
The announcement spoke about the implications of this pilot leading to full field commercialisation and that the nature of the coals and verification of drilling technologies will allow for wider spaced wells with longer lateral sections for greater economy in development. We hold.

 

[grace]

A very positive announcement today on the performance of the multi-lateral production pilot
.http://www.asx.com.au/asxpdf/20090618/pdf/31j3zfthcp2vjx.pdf
The announcement spoke about the implications of this pilot leading to full field commercialisation and that the nature of the coals and verification of drilling technologies will allow for wider spaced wells with longer lateral sections for greater economy in development. We hold.

Well esg got a rocket under it today. Was it the multilaterals....or the new presentation for UBS. Either one sounded pretty good.

Market cap = $700mill with $68mill cash.

3C reserves >6000PJ. I'm going to say that if that goes up to 2P one day, we are looking at similar reserves to QGC. Well, the value could be around that $6 Billion mark if the 3C can be converted to 2P. I wonder if esg will be allowed to get that far. PES was similarly promising, and would have been a $50 stock in a few years time. I am happy to wait for the reserve certification and I hope that ESG mgt remain strong, focused and intent on the long-term bigger picture.

 

[pointr]

Well Grace I hope that rocket is a multi-stage one to carry this stock much higher. The pre-fractured nature of some of the coals across their PEL's make this a very exciting project. So which is better ESG developing it to its potential, or the prospects tempting an energy major into a takeover. Both are good and only time will tell. One would think our state Gov't would do everything it could to fast-track the development of this major gas resources in our own backyard .