This is a mobile optimized page that loads fast, if you want to load the real page, click this text.

ESG - Eastern Star Gas

Jump to new
I'm very happy with ESG's latest promising pilot gas production. The Gunnedah Basin has been in the middle of much of NSW's very welcome Christmas rain. I wouldn't be at all surprised if the recent rain will temporarily slow activities on the project, with the potential to push back reserves upgrades if they are relying on current drilling information. Regards to all Pointr
 
There we go, easy does it baby -- nice rise today comfortably over the .85 barrier. The market can't ignore the intrinsic value in this stock I only wish I had the guts to buy in when it hit 74 cents !!!!
 
Perhaps a general increase in the CSG sector due to AOE / LNG announcement today re Gladstone project. MPO is also up and from reading another post MEL is up as well.
 
pointr said:
Perhaps a general increase in the CSG sector due to AOE / LNG announcement today re Gladstone project. MPO is also up and from reading another post MEL is up as well.
Click to expand...

13 odd % up today in the end! = quite a jump for ESG. I'm hoping AOE announcement has nothing to do with - rather that someone close to home knows something going on for ESG. Often see these kind of jumps before an announcement in resource stocks... would be nice to see it get above 1$ and stay there, but once again - I'm happy to be patient.
-d
 
Nice open briefing interview/announcement released today. Some very good in-depth questions - forecasting reserves upgrades later in the month or soon after...

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01029620

If they get anywhere near their 2009 target then things could get interesting!... here's hoping for all us patient types...

Very interesting about the de-watering rates V. seam thickness comments as well. Methinks 2010 could be a very good year for ESG.

-D
 

Yessss, I also checked this briefing - they are talking about even LARGER reserves in the multi-lateral well which contains thicker coal. Also interesting is this reserves certification will include rates from multiple wells for the first time.

I think Santos were not so silly paying $1 for this after all

If I only had more cash I would be picking up some more under $1
 
I agree - I read this mornings announcement and was surprised when the price went down??!! I decided to pick up another chunk at 87cents. I think over the next few days/weeks we will see this re-rated back up towards the $1 and if the announcement at the end of the month is as good as they are hinting I think we will see a major rerating.

malachii

PS - PLEASE NOTE - I OWN A CHUNCK OF ESG SHARES. ANY COMMENTS I MAKE ARE EXTREMELY BIASED. DO YOUR OWN RESEARCH AND MAKE YOUR OWN DECISIONS!!!!!!
 
Yes I also had a positive view from this mornings announcement but I still think there will be plenty of ups and downs before this company and its Gunnedah basin assets reward we holders in full. There are still time / development issues,technological,geological and commercial hurdles to overcome. This is not unique to ESG, to quote an old AJL announcement something like "we have a geological entity we are converting into a commercial asset". It takes time
 
I have been following the stock for a long while as I am small holder of MEL. I like the sector and Eastern Star Gas interest me. In the short term though it looks as though this on a bit of a downer, perhaps the sector got a bit too hot... Since it's breakthrough over 75 cents about a year ago it seems it looks as though it's doing okay however it seems to becoming back down to those levels.
As long as it holds above 75 cents in this current downtrend I will be looking to get it around those levels. If it breaches 75 it's a bit of an unknown of where it can find support.
From reading this thread there is some people who have faith so I guess I will watch closely.
 
G'day naughty,

Tend to agree - I bought a stack the other day at 87 and unloaded most at 89 as it just wasn't seeming to go anywhere. I think it will track lower - although I dont expect it to break below 75cents. In my opinion this will drift until the next announcment of the upgrade in gas reserves due at the end of this month or early next. The trick is when to buy as once the announcement hits the market I think we will see a decent jump back up towards (and hopefully thorugh) the $1 mark.

malachii

PS: I STILL OWN ESG SHARES (despite the above mentioned sale) SO MY OPIONIONS ARE VERY BIASED. PLEASE IGNORE ANYTHING I SAY AND DO YOUR OWN RESEARCH!!!
 

I expect sp will probably bounce around a bit until the announcement is imminent, and then if the news leaks out somewhere, as often seems to be the case with resource stocks, she could start upwards in the days before the announcement - presuming it's a good one. So good luck trying to get the timing. I'm happy just to hold, confident the rise will come when it comes.... but then I'm not a 'trader' either. DOn't have the time or inclination, nor probably the temperament.

- cheers -d
 
In the US overnight weekly natural gas inventories reportedly fell by more than expected (245bcf vs expected draw of 230bcf). Natural gas prices moved higher, pit trade 2.0% higher at $5.61 per contract.

If you're so convinced the announcement will be a good one, I wouldn't be fretting too much about current sp from here (0.82), and I think Malachii is probably right about strength of support at 0.75.
 
With the US market down another 2% on Friday night, I'd say all bets are off for the near term. I've reviewed all my bids, including this one.
 
ESG stood it's ground pretty well didn't it. Early days yet, but indications that we may see a better night for US markets tonight. So it feels comfortable for now. AOE is holding up too.
 

Attachments

  • ESG_Jan09.gif
    15.2 KB · Views: 116
And so the long awaaited reserves upgrade is announced and exceeding the 2009 target. Should be more to follow quickly as long as more dewatering problems don't occur. It will probably take something good to overcome the current general market sentiment.
 

Awwwright!!
Those are some nice figures:

As at 31 December 2009, certified 2P reserves have been increased by 152 % to 1,520 PJ (of which ESG’s net interest is 988 PJ), while certified 3P reserves have increased by 43% to 2,797 PJ (of which ESG’s net interest is 1,818 PJ).
Click to expand...
above from latest ESG announcement.

-Market sentiment aside - those reserves indicate that ESG is way undervalued at it's current market Cap. I'd be surprised if there wasn't some upward pressure from the market. It might be slower due to current market dodginess - but it should be there.... the reserves are there, and the flowrates are there...

even if you massively discount the T/O prices paid last year, which if I recall correctly were in the vicinity of $2M/2P PJ or $1M/3P PJ...... well... you guys can do the figures. .... cut those prices in half and it's still way undervalued.

current MC is around $670M.
 
I like your maths and logic Dukey, and I hope the market does as well. Has any of the Queensland CSG / LNG projects actually proceeded to final investment decision. I read today that AOE hoped to reach this point in this quarter. I think when and if these decisions are made, that will establish the new market and totally revalue the east coast gas market and the assetts supplying it
 
I havn't been keeping up with the progress of LNG projects that closely lately pointr. - I think i remember hearing that someone ... was it santos? - was looking at LNG export from newcastle. Either way - it all creates more demand for gas.

So as far as ESG is concerned I think it's like that kiwi chick says... "It won't happen overnight, but it will happen"!!


... the reserves announcement is here by the way folks: http://clients.weblink.com.au/clients/easternstar/article.asp?asx=ESG&view=2581075
 
ESG is applying for approval to export LNG through Newcastle.

I'm disappointed with the timing of this announcment - let's face it - if you wanted to make a MAJOR upgrade announcment at any time over the last 6 weeks or so - this last couple of days were probably the only time it wasn't going to make a huge impact. A couple of weeks either side an I reckon we'd be looking at near enough to $1 and even then, as the numbers that Dukey showed above - it is still undervalued with current going rates.

I think the market will now give this upgrade a slow recognition and trickle it's way up. I think we'll still see something around the $1 mark - but I reckon we'll just have to wait a little while.

malachii

PS: I OWN ESG SHARES SO MY OPIONIONS ARE VERY BIASED. PLEASE IGNORE ANYTHING I SAY AND DO YOUR OWN RESEARCH!!!
 
The current price of ESG shares doesn't make sense does it? The rapidly rising gas reserves suggest a fundamentally higher price particularly if one considers there is much more exploration to be done and that energy prices will only get stronger as the inevitability of peak oil starts to bite.

But I suppose when the market sentiment is so hostile selling pressures will drive down almost everything regardless of "intrinsic value" . Other forum members might remember some similar anomalies in the last year when shares were priced at substantial discounts to actual cash in the bank let alone huge proven reserves. For example BRM was selling at 50 cents when it's cash assets alone were worth 85c plus in Dec 2008.

So I suppose that at some stage the reality of the proven resources ESG is holding will be recognised and the boat will come.....or does anyone else have another perspective?
 
You must log in or register to reply here.

Similar threads

Y
CND - Condor Energy
15 16 17
Replies
339
Views
83K
Dona Ferentes
Y
RIM - Rimfire Pacific Mining
2
Replies
24
Views
11K
Dona Ferentes
Y
  • Locked
EPR - Essential Petroleum Resources
Replies
14
Views
7K
Joe Blow
Y
PSA - Petsec Energy
5 6 7
Replies
131
Views
21K
greggles
Y
ODY - Odyssey Gold
2 3
Replies
51
Views
15K
embryo
E
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more...