ESG - Eastern Star Gas

[skc]

They didn't offer BPAY etc. So it was chq and snail mail. As I live in the bush, the day I had to post it by, the stock was trading at higher than 85cents. I recall the SPP was at 85cents - no brokerage. I wanted a few more anyway, and will continue to buy, if it drops......please.

I see. The good old days of cheque and snail mail.

BPay for SPP / rights is the best thing... and even better when they refund you electronically as well. I hate it when my money takes a month long holiday to travel around the county.

I've never had a cheque account so I always had to go to the bank for a bank cheque. It costs around $15 and if you are unsuccessful for whatever reason (like IPOs) and get the same cheque returned, it cost me $35 for the bank to buy it back!

Back on topic. Chart's not looking too bullish for ESG. But 70c there are plenty of support. One would think STO launching a takeover would also come into consideration at 70c. They can offer $1 which is what they paid a few months back, and it would be a good 40% premium.

I might pick up a few if it ever gets down there.

 

[grace]

Reading the Chairmans report today....the Bibblewindi multi-lateral pilot is flowing at 470 000 scfd from mid-Oct 09 operation.

Reserves upgrade is running very late, but it will be a good one!

 

[pointr]

Yes Grace and the chairman also used the word 'exponential' when speaking of increases expected in the coming months. I expect the market is waiting to see
actual 'numerals' recorded rather than words spoken.

 

[jancha]

ESGs Bimonthly drilling report didn't impress too many share holders. Down 5%to 78.5c. Pity those who bought an extra 15k worth of shares @ 85c but thats how it goes. I sold Mel & bought ESG @ $1. Thought Santos couldn't be wrong buying @ $1

 

[jancha]

Sorry jancha, my crystal ball is currently broken so I'm not sure what the future will be for ESG short term. I'm not taking shares up in the SPP, my spare $$''s are needed elsewhere at present. On the subject of SPP, I noticed an old check butt the other day where we bought MPO several years ago via a SPP. Looking back now the price paid is a pittance compared to their current price even allowing for consolidation they did some time ago. My long term view of ESG is positive however any delays in pilots or reserves certification, or general market downturns, if they occurr may present short term buying opportunities

Pointer short term buying opportunies are starting to present themselves wouldn't you think?

 

[pointr]

Hi Jancha, I hope its a buying opportunity and not an opportunity lost, but I'm still not buying any more. ESG's momentum has been downward, not sure where the floor is. I think ESG is going have to demonstrate those 'exponentially increasing' production figures the chairman prognosticated in his AGM to stop the bleeding. A significant reserves upgrade or some corporate action in the sector might also might excite some buyers. MOS recently stated that it was going to concentrate on 'liquids' rather than gas in its planned drilling because it can see an oversupply of gas in the short term until East Coast LNG comes to fruition. regards pointr

 

[growing]

The whole Coal Seam Gas sector has been a bit flat as people seem to be concentrating more on Financials in line with the economic recovery theme going on..

I'm with everyone else though, ESG's sell off is very disappointing, again it comes down to patience .. we have all been bread to demand everything "NOW"

 

[Lavender]

So the offer for shares at 85c prompted the price to fall below 80c. Not a good win for shareholders. Ian Kirkham is sending almost daily emails to us with drilling reports but when asked will not address the question of why has the share price tanked? Is it due to the quantity of additional shares diluting the value? Or perhaps that the glitter has left the CSG industry?
Will it rebound?

 

[vicb]

So the offer for shares at 85c prompted the price to fall below 80c. Not a good win for shareholders. Ian Kirkham is sending almost daily emails to us with drilling reports but when asked will not address the question of why has the share price tanked? Is it due to the quantity of additional shares diluting the value? Or perhaps that the glitter has left the CSG industry?
Will it rebound?

Thats a good point. I bought in around the 97c area and sold out at the 92c before the offer expired. I had thought about buying into the full $15000 worth but in the end I could not see the stock holding above .85.
Instead bought into arrow energy (AOE) which has been feeling the same sort of pressure in the last few months but is recovering some lost ground.
I will be looking at buying back into ESG at around the .75 - .80 area. Its seems to me to be good value. Feel bad for anyone who bought in the offer and if I had 'snail mail', I also would of bought in.
I do think we will be seeing a turn around in this stock soon.

 

[Dukey]

So the offer for shares at 85c prompted the price to fall below 80c. Not a good win for shareholders. Ian Kirkham is sending almost daily emails to us with drilling reports but when asked will not address the question of why has the share price tanked? Is it due to the quantity of additional shares diluting the value? Or perhaps that the glitter has left the CSG industry?
Will it rebound?

Dilution would only be small part of the story I'd think. Bad timing with the recent downturn is a fairly big factor. And yes - everyone's attention is elsewhere recently. patience is the game with these things. I've been burnt many times by selling out just before the next leg up - like with MEL recently - Their sp did nothing much for over a year till a week or so back and then... whammo!
ESG have flagged good reserves upgrades and that should have a positive effect when they come through.

 

[Lavender]

Thanks for the confidence boost Dukey.
Do you think the same applies to gold? Specifically Norseman?

 

[Nero64]

With 865 Mill shares outstanding it would be interesting to know how many times it has tapped the market since its listing in 2001. Good luck to Santos for buying in at $1. If you missed buying in for under 50c when it dipped to nearly 20c then I don't see it appreciating greatly from here unless mass speculation hits the market again. Of course it might bounce here and there on good news but is it worth buying in for 10-20c gain. You have to ask yourself that. Unless you want to hold it for a long time it may double if NSW looks to CSG for its power supply needs.

 

[growing]

Dilution would only be small part of the story I'd think. Bad timing with the recent downturn is a fairly big factor. And yes - everyone's attention is elsewhere recently. patience is the game with these things. I've been burnt many times by selling out just before the next leg up - like with MEL recently - Their sp did nothing much for over a year till a week or so back and then... whammo!
ESG have flagged good reserves upgrades and that should have a positive effect when they come through.

I'm with Dukey, wise words and I have experienced much the same thing in the past and I adopt the same opinion for ESG's future.

Patience it is !

 

[grace]

I'm with Dukey, wise words and I have experienced much the same thing in the past and I adopt the same opinion for ESG's future.

Patience it is !

Growing by the day we are!!!

Bibblewinde West Pilot is flowing at 2 million scfd after only one month of dewatering.

Now in my books, that is up there with the best of the best in QLD. Anyone care to comment??? If will be one amazing resource upgrade imho!!!

 

[basilio]

Fairly big jump in ESG today. Seemed like some solid early volumes. Would reserve upgrades come before Christmas ?

I like your enthusiasm (and judgment...) Grace ....

Can you rub some onto LNC for us please

 

[Dukey]

Growing by the day we are!!!

Bibblewinde West Pilot is flowing at 2 million scfd after only one month of dewatering.

Now in my books, that is up there with the best of the best in QLD. Anyone care to comment??? If will be one amazing resource upgrade imho!!!

!! are you serious Grace! - thats the kind of flows I've been dreaming of!

missed that announcement... let me go find it.......

-------------------

Rather than post again - I'll edit.

Well - Grace is not making it up (not that i expected you would Grace!)... and yesterdays sp jump is probably well justified IMO.
- here's the link...

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01024974

(tell me if it doesn't work).

These are the kind of flows that got QGC on the road to where it is today - I havn't seen 2Mill since then.... and wouldn't you know it - I was ripping a toilet cistern off the wall and installing a new one last night and had no time to check.

anyway - happy days for X-mas 2009.
one would expect that if these results can be replicated then it should translate to very good improvements in operational efficiency (less holes required for X amount of gas), and possible better reserves.

- it's allllll good.
------------
OK - you can tell I'm a little exited by those flows - all comments are just my opinion etc. - no advice intended etc.

 

[basilio]

Yes it does look good. Have to say I have always believed ESG had huge potential (and encouraged others to buy in) but hadn't actually done so myself..

Jumped in today on the overall strength not to mention that last report. So lets hope it's another PES.. (that was the only thing that made 2008 look remotely close to even..thanks G)

 

[Dukey]

Yes it does look good. Have to say I have always believed ESG had huge potential (and encouraged others to buy in) but hadn't actually done so myself..

Jumped in today on the overall strength not to mention that last report. So lets hope it's another PES.. (that was the only thing that made 2008 look remotely close to even..thanks G)

Yes - PES was a nice earner - but I would rather still own the shares I think - or at least some of them. needless to say - flows like 2mmcfd are what attracted the amazing bidding war over PES - among other things - location etc.

 

[jancha]

Yes - PES was a nice earner - but I would rather still own the shares I think - or at least some of them. needless to say - flows like 2mmcfd are what attracted the amazing bidding war over PES - among other things - location etc.

When chosing between either MEL or ESG I chose the latter @ $1 ps.
Thought if Santos was prepared to pay that much for them it couldn't be a bad thing.
Since then MEL had doubled in sp at one point while ESG kept heading south.

Hopefully the news continues with more upgrades & ESG can find it's way back to the $+ mark.
I think Dangerous happen to mention ( when MEL sp jumped ) that Santos only came in on ESG for it's drilling technology.
In hindsight i should have stuck with both companies but if ESG keep coming out with annoucements like the last one it could possibly have been the right choice.

 

[growing]

Hehe, it all goes back to what Dukey said earlier about patience and long term

Some would argue chopping and trading shares in the short term allows you take advantage of the peaks and troughs but then you risk missing out on the HUUUUUGE rises which can occur on the back of news similar to this.

Although this announced incredible flows, we are yet to see an official reserves upgrade. From what I can see it is just around the corner however and THEN we should keep a close eye on the share price and volumes -- It's possible more institutional investors will jump in on the back of certified reserves

I'm not saying SANTOS can't make mistakes but given their experience in energy, it is unlikely. In fact to me, this whole thing is a transparent setup for future SANTOS takeover (Arrow/PES analogy). We can't realistically expect ESG to hit the $8-$9 mark of PES due to a huge difference in share dilution but there is certainly a buck or 2 to be made by holding ESG until SANTOS make their move

Disclaimer: IMO !! No advice or ramping intended...