Patience guys, we should get the Mt Leyshon drill results...

Patience guys, we should get the Mt Leyshon drill results shortly, its been 7 weeks since the 27 June announcement.

I'm hoping the gold play in LRL will be a real company maker

Shale deals do not look that hot at the moment with write-downs on assets that were on sold for too much, this is probably why the market hasn't jumped on LRL yet.

http://www.smh.com.au/business/burnt-fingers-all-round-in-us-shale-gas-boom-20120801-23g03.html

With the China deal having potentially between 1 and 3.8 trillion cubic feet, my research indicates that only 10% of that 'potential' may be recoverable. At current US prices of ~$3 / thousand cubic feet and with a 40% option to buy back in from the vendor the LRL share could get diluted. My envelope calcs suggest 180m from 1tcf and up to 684m from 3.8tcf. I have no idea what the capital costs in realising this are, and one would expect the gas prices to probably increase from these near lows so the upside could be more. On the surface given this only cost around ~4m inc shares it looks like a good deal, but not without drill risk.