In Queenslands newspaper "THE SUNDAY MAIL" each week, there is a...

In Queenslands newspaper "THE SUNDAY MAIL" each week, there is a segment of around 3 to 4 pages titled "SMART MONEY". There is also a sub section titled "STOCK IN REVIEW".

In last Sunday's edition 10.01.10 in the Stock in Review section the question was raised as to 'WHAT ARE THE BEST COMMODITY STOCKS?" Victoria Petroleum was mentioned, here is the item.

Tony Dennis, Director, Equities RBS Morgans LTD, said quote "Commodity stocks look set for a strong year and are very hot right now. There is a lot of optimism in the market about the upcoming price negotiations in iron ore and coal. It is fuelling a mini spexculative boom.

Within the sector, BHP is the Rolls-Royce but I would be waiting for the excitement to settle down before adding more to portfolios. In the mid size companies, Centennial Coal and OZ minerals are quality companies still offering good value based on the actual cashflow they will produce this year.

The trading focus at present is probably on the smaller more speculative end, where newsflow and momentum is more important than the underlying merits of companies and projects.

The areas that interest me most in this space are the emerging coal seam gas players in Queensland such as Bow Energy and VICTORIA PETROLEUM; companies developing projects in the world's hot new gold province West Africa, such as Perseus Mining and Minerals Deposits; and other junior metals stocks with good assets and strong financial backers on their share register such as Discovery Metals, Emmerson Resources and Rex Minerals." end quote.

I have held Victoria Petroleum shares for several years & yes they have kept the bottom drawer warm. It has been a very frustrating stock to hold. The schedule for drilling wells is constantly delayed/reviewed (probably through lack of funds]. However, I do see the tide turning with more attention being given to CSG drilling & in particular to drilling in what is termed the Prime Walloon Coal Seam Gas fairway.

It is my opinion that we will see a re-rating of this stock upon completition of the SPP & the conversion of options at the end of this month. It would not surprise me to see a takeover offer later this year if the CSG drilling results meet or are above expectations.

These are my thoughts only so make your own judgement as to whether to invest in Victoria Petroleum.