Would be but I don't anything will happen other than the standard "We see LNG and shale gas as a game changer and are committed to MPRDA and hope to finalise it soon."
The committee heard over 30 submissions on the Act during the three sittings in June so hopefully that means public consultation should be finished. SA parliament doesn't sit in July so that means nothing can be considered till August. Good thing about that is that the Committee now has all of July to finalise its report and present to parliament.
If that happens you'd expect a vote in August and if confirmed its fair chance the Department of Mineral Resources could almost rule immediately on licence issue. So September hopefully.
In the meantime lets look at the positives.
Current share price represents EV of around $10 per acre for our "licence" area which is way below comparable values around the world. $30 an acre is about the going rate for pre-feasability holdings however not many "exploration" area's have the comfort of a knowing that a well, slap bang in the middle of the licence area, has already flowed gas naturally without the need to frack.
That almost takes Cranmere into a "sorta"feasible rating and surely will have an impact on valuation once MPRDA and licence are sorted.
So I'm thinking $0.075 to $0.10 post legislation and $0.10 to $0.15 post licence issue.
The other positive is being such a minnow in a such a potentially large resource play there will be no shortage of willing majors really eager to get a look in on the ground floor in the Karoo.
CEL Price at posting:
2.3¢ Sentiment: Hold Disclosure: Held
