For those of you who don't know much about planet gas, its worth a refresher. This company has large coal bed Methane tenements in the US. Macquaire Bank have done their due diligence and financed the next step of these projects. The gas price in the US is far higher than oz and the coal seams are 20-30m thick. Infrastructure is near by. Wells like this once finished are worth around $1-$2m ea and the company looks set to have 80-100 wells within the next 12mths. Considering the market cap, PGS is a steal at these prices.The cost of drilling a well in the US is much less than what Sydney Gas can do. Mac Bank did the same deal with BOLNISI and it tripled. The management and people behind PGS are the same and mac bank has come onboard with an option to acquire around 20% of PGS for 27.5c per share. Thats around 50% higher than todays share price close. PGS now does not need to raise money. The area has proved its self, so i think its a multiple from here as the wells come in. The company should be able to drill 4-8 wells per mth with a couple of rigs, so sit back and see this company grind up the chart IMO. Do you home work and don't expect the stock to double in a week. Its a buy IMO.
PGS Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
