MEL - Metgasco Limited

[Nero64]

I have added 100K to my holdings but its a trading holding in addition to my much larger core holding

$100,000 or 100,000 shares.

Assuming you bought at 50c a share averaged that is $50 000.

And you're saying you have a larger core holding?

I would have to say MEL has potential, but what would happen if the CSG is beaten to the punch by straight LNG and the QLD and NSW governments turn cold on CSG as an energy source.

MEL is NSW based. Straight away it is at a disadvantage to it's QLD peers, which are attracting most of the big investment.

 

[Datsun Disguise]

Peter Power (Director) has cnoverted 1.48m options at an ex price of 29c - about 450k worth- now lets see if the corresponding disposal of 1.48m shares at 50c for the 300k profit appears.....

Lets hope this is a strategic buy rather than a tactical one....

Still holding but watching closely.

 

[Dangerous]

$100,000 or 100,000 shares.

Assuming you bought at 50c a share averaged that is $50 000.

And you're saying you have a larger core holding?

I would have to say MEL has potential, but what would happen if the CSG is beaten to the punch by straight LNG and the QLD and NSW governments turn cold on CSG as an energy source.

MEL is NSW based. Straight away it is at a disadvantage to it's QLD peers, which are attracting most of the big investment.

It is at an advantage to its QLD peers - CSG to LNG is not proven and still faces signifcant obstacles. NSW has a pending electricity crisis and CSG use in gas fired power stations is tried and tested...

Would like to know more on their conventional assets

 

[Datsun Disguise]

Peter Power (Director) has cnoverted 1.48m options at an ex price of 29c - about 450k worth- now lets see if the corresponding disposal of 1.48m shares at 50c for the 300k profit appears.....

Lets hope this is a strategic buy rather than a tactical one....

Still holding but watching closely.

Another 3B out - this one is for the exercise of 10m oppies at 29c. Wonder whoese name will be on the 3Y. Again - hopefully these don't find their way into the sell column too soon... That is $2.9m of someone cash laid on the line - demonstrates some confidence that 29c won't be tested..

 

[Mad Mel]

NSW has a pending electricity crisis and CSG use in gas fired power stations is tried and tested...

The problem as I see it is that MEL does not have a means of getting gas to the major NSW markets. They have a plan to get it to SE Qld, but putting a pipeline from their tenements into a transmission system feeding Sydney would be a tall order.

 

[YOUNG_TRADER]

Out with the old and in with the new

Looks like a changing of the guard is happening at the moment and its not a coincidence that its happening on the last day of the financial year

Good to see that the price agreed upon between the sellers and buyers for XT's or corssings is 45-46c this should make for a nice solid base going forward


and for all those who only see the value in Qld CSG I will remind them of two things, 1 ESG and the easiest way for ESG with a mkt cap of over $700M to double its current reserves is to take out MEL which has a mkt cap of $80m or 1/9th that of ESG's

2. AGL did buy MPO/AJL's Gloucester permits for around $2 2P or $1 of 3P reserves and I've crunched the math on what that would equate to for MEL, it was like $4+ a share from memory

 

[YOUNG_TRADER]

Well there we go have a read of the below

"The consideration being paid to Gastar equates to $0.66 per GJ of current 3P reserves. Santos will pay a further $20 million to Gastar if ESG meets certain reserve targets by 31 December 2009.
Santos’ acquisition of a 19.99% interest in ESG represents a strategic investment that will align the interests of the respective joint venture partners. Santos will pay $176 million1 for the interest, equating to a price of $1.00 per ESG share. Santos has agreed to make an additional payment to Hillgrove in the event that any party completes the acquisition of a beneficial interest of more than 50% in ESG at a price in excess of $1.00 per share within 18 months.

The consideration being paid to Gastar equates to $0.66 per GJ of current 3P reserves. Santos will pay a further $20 million to Gastar if ESG meets certain reserve targets by 31 December 2009.
Santos’ acquisition of a 19.99% interest in ESG represents a strategic investment that will align the interests of the respective joint venture partners. Santos will pay $176 million1 for the interest, equating to a price of $1.00 per ESG share. Santos has agreed to make an additional payment to Hillgrove in the event that any party completes the acquisition of a beneficial interest of more than 50% in ESG at a price in excess of $1.00 per share within 18 months."



Well once and for all we now have a clear indication that NSW 3P is worth at least 65c a GJ

MEL's 1550 PJ's NET 3P Reserves at 65c are worth over $1Billion Dollars = $5.60 a share

Sooner or later the market is going to have to wake up to this

With all the mid tier players going there are very few under $100M Mkt Cap, MEL amazingly with the largest NSW Reserves sits at around $80m

D-Day is coming

 

[Sean K]

Well once and for all we now have a clear indication that NSW 3P is worth at least 65c a GJ

MEL's 1550 PJ's NET 3P Reserves at 65c are worth over $1Billion Dollars = $5.60 a share

Sooner or later the market is going to have to wake up to this

With all the mid tier players going there are very few under $100M Mkt Cap, MEL amazingly with the largest NSW Reserves sits at around $80m

D-Day is coming

Why is it undervalued YT?

Location?
Management?
Bad website?
Smelly breath?
Silly name?

I don't buy the 'under the radar' deduction. Must be some reason...



Like you, I'm holding quite a few now. I'm thinking smelly breath though....

 

[JTLP]

Interesting question...

Will this now lead to the rise of MEL? Or will it have a smashing day and then get brought back to earth with the friday sell off/sell off of hype?

Should be a very intriguing day tomorrow...

 

[Sean K]

Interesting question...

Will this now lead to the rise of MEL? Or will it have a smashing day and then get brought back to earth with the friday sell off/sell off of hype?

Should be a very intriguing day tomorrow...

It'll probably move with the market tomorrow. The US is being given a right royal how's your father at the moment.

 

[Sean K]

Directors stealing options at 29c and selling on market at 45c.

How do you get one of these jobs?

 

[CapnBirdseye]

Nice, $170k in the bank, and 1.9m shares for, well seemingly nothing. Nice work if you can get it I guess.

 

[YOUNG_TRADER]

I am happy with Directors paying 29c for shares via option exercise

Its great when you align the interest of directors with shareholders and imo the best way to do this is by directors having a good stake in the company, that way they are motivated by personal greed to get the share price up which is good for us

Kenna maybe call the company and tell them to get some breath mints or something? :

Seriously though this company has no f$%king idea how to promote themselves or get institutional support,

The old adage, great assets are nothing without great management

A takeover is the only way to rectify the mis-match in pricing here

 

[Datsun Disguise]

I am happy with Directors paying 29c for shares via option exercise

Its great when you align the interest of directors with shareholders and imo the best way to do this is by directors having a good stake in the company, that way they are motivated by personal greed to get the share price up which is good for us

As long as they hang on to them and don't go for the cash grab YT! After the STO/ESG/HGO news I'd say they'll be hanging to see if they can get a few more cents for 'em.

This is just speculation, but Geraldine(?) converted $3m worth, is she now looking to sell down $3m worth to pay back her short term loan taken out to pay for them in the first place???

 

[gaps]

Drilling commenced on Corella–E17 CSG Exploration Well

i'm reading up more on this company and came upon this. may i ask the seasoned energy stocks followers where i can get a gd source of information to understand more about these energy plays? i'm a newbie wanting to learn more, but hope that you guys can guide me along. thanks heaps!

 

[Dukey]

Drilling commenced on Corella–E17 CSG Exploration Well

i'm reading up more on this company and came upon this. may i ask the seasoned energy stocks followers where i can get a gd source of information to understand more about these energy plays? i'm a newbie wanting to learn more, but hope that you guys can guide me along. thanks heaps!

Gaps - have a look at the CSM thread - link below - which has some good general posts, esp early on, and company comparisons. Other threads worth looking at are QGC and PES threads to see how the benchmark Co's perform(ed). - Both have been taken over by BG and no longer listed - but they are still the benchmark against which to compare all others IMO. (best coals and flow rates).

https://www.aussiestockforums.com/forums/showthread.php?p=458370&posted=1#post458370

Many of the CSG companies put out regular presentations. MEL and BOW seem to put out good ones with glossary etc. Download a few of these from various companies - to get a feel for what's important. Beware some talk it up more than others.
Get them from the Company websites, asx site, comsec. etc.

Folks in general might also find this attachment interesting/useful .... found it on the web a while back - havn't even got to read it myself.
...actually - how about - someone summarize it and get the report back to me by 5pm sharp tomorrow !

ta-berry-mush and good luck -
-E

 

[CapnBirdseye]

Operations update for MEL today.

This is of interest.

A short term production test was conducted immediately after reaching TD with free gas flows of 30,000 mcf/day recorded without pumping.

30,000mcf? Is commercial just 300mcf? If so, this is a great result. I notice the market hasn't responsed to this, so am I wrong?

 

[YOUNG_TRADER]

Operations update for MEL today.

This is of interest.



30,000mcf? Is commercial just 300mcf? If so, this is a great result. I notice the market hasn't responsed to this, so am I wrong?

thats 3Billion standard cubic feet a day, no way thats possible

I mcf = 1000 cubic feet


http://platinumenergygroup.com/plant/energyconversionfactor.aspx

 

[CapnBirdseye]

Check my maths. I dont think we are in to billions.


30,000 x 1000 = 30,000,000 cf/d

you are right 1000cf = 1mcf.

 

[gaps]

why is the sp responding to this news in this manner? i thought 400mcf per day is what commercial flow rates are being sought after. wouldnt this news be positive? is there any more clarification on this? thanks