must read, page-8

Otaw

sorry the late reply. I can't say who my mate works for. However he sent me a fairly good read from Citibank. It is a 45 page document on their initial thoughts on the CSM business. THey are initiating some solid coverage on CH4 and SGL. They compare the two companies in detail. THey rate CH4 as a buy target price 1.20. They rate SGL as a sell Target price of 91c.

My understanding is that CH4 have significant sales contracts with Enertrade to deliver 290PJ of gas to Townsville power station over the 15yrs.
They start delivery in Feb 2005.

In addition they have significant scope to upgrade resources and current drilling programes are proceeding better than expected.

MBL still hold a significant stake in the company which speaks volumes from where I sit. After Nardell coal mine a couple of years ago they would only be hanging onto this if it promised some considerable growth opportunities.

See if you can the Citibank note and have a read.

Cheers

Saxa