Using some rough calcs to value them based off the low, average,...

Using some rough calcs to value them based off the low, average, and high prices paid for 2P and 3P reserves from the recent summary of CSG transactions in 2008 from the AGL purchase of the AJL/MPO tenement PEL 258, I came up with the following napkin valuation:

2P 3P
Low 1.58 0.52
Average 2.26 0.87
High 3.93 1.32 $/GJ

2P reserves = 394PJ
3P reserves = 1241PJ

2P 3P TOTAL
Low 622m 440m 1.062b
Average 890m 736m 1.626b
High 1.548b 1.118b 2.666b

When considering the other aspects of Pures growth in reserves through 2009 then there are an additional Contingent reserves to be added:
784 at Cameron ATP852
800 at Dingonose and Duckworth in ATP806 and ATP758

Additional contingent resource of 1584PJ and valuing them at the 3P asset sales figures.

2C TOTAL (added with the above total)
Low 824m 1.886b
Average 1.378b 3.004b
High 2.09b 4.756b

Consider all this is ignoring the clearly significant resource that is under ATP831 (AOE50%) extending into ATP758 and the Tasmanian permits…. As well as the 889 and 965 resources.

With approximately 123million shares on issue with all options exercised, the current market cap is around $380m. Working on the above asset values its not too hard to figure out there is substantial growth left in Pures current share price, even if you took the low side of things. But is that realistic, no not really as the Cameron field has produced some excellent flow rates thus far in some high content coals, so maybe average and above might be more realistic.

Obviously this will take some time to get up there, but relative to the question how much growth does this stock have in it? We have just taken off and retracted our gear and are starting our climb up to cruising altitude of 38,000feet!!!!!!

As a point of interest, they also did a $15m capital raising through share issue at $1.70 back in June.

BTW has anyone seen any announcements regarding the drilling results from 831 that were drilled in September. I checked both arrow and pures sites and the asx and couldn’t find anything which gave an indication of gas content, permeability or depths drilled???

Please do your own research. And when you do have a look at the annual report, can you hazard a guess at where the watermark/background setting for the graphics is?

SF