asset value, page-8

Just reading back throughlast Thursdays AFR page 25.

Decent write up on BPT and Shale but not very positive.

Santos, BPT and AWE among the most shorted stocks on the ASX on Wednesday. Investor dont believe its a goer due to price, apparently we need $3GJ over and above current east coast gas prices to be viable, dependant on flow of coarse.

However supporter point export prices and the fact large export contracts come up for renewal in 2015 just when we will be ramping up production. Also noone believed in CSG when it was young either.

They assume a well costs $10mil to drill and complete for production. Also mentioned growing environmental concerns about fraccing.

Personally quite happy to hear of shorting, BPT/ADE not far off recent highs and if that against major shorting activity, I would be very concerned if I were short, they will have to buy back eventually.