T_G, a bit lonely in here. Not uncommon in the oil plays right now though. I think that HSBC is not the bank or its asset management business rather its a nominee for an individual. Hides the identity in a way.
Im liking this company more and more based fundamentally on the dynamics of WA gas prices. You combine an $A8 per mmcf gas price and a project that now has a very well respected technical group ( Finder ) involved with a plan to drill a well this year as an offset to a well drilled 25 years ago that flowed 7oo mcfpd. A lot has changed in drilling and completions in 25 years. While all wells have risked it would seem that there is a high probability that they could have some success here. I like the Perth Basin a lot. Its only a matter of time before the mid-sized players enter the basin attracted by the high prices. Once you get one new entrant in they will all come. You can have 1 tcfg sitting in Texas or you can have 250 bcfg sitting in the Perth Basin. the difference is that there is very little downside price volatility for gas in Western Australia. prices are negotiated as opposed to an open mkt Henry Hub model. 25 bcfg is worth 10 cps to ENB right now based on a $A8 gas price. If the Ocean Hill Project turns out to be much larger and into the realms of 300 - 350 bcfg then you are talking in the $1 per share range. Not that we would see anything like that in the short term as this is a medium term play that could come into development over 3-5 years but the potential is there. Other companies that I think are interesting are Empire ( if and when they get back to exploration and development), Norwest and Key. Starting to do teh work on them all. Maybe it wont be so quiet in here soon.
dyor
ENB Price at posting:
2.6¢ Sentiment: None Disclosure: Held
