We discussed the other day the potential upside in the share price based on good results from Moree-4 and then for the lease as a whole .. and its substantial. We need to remind ourselves though that it is very early days in the exploration of these leases ... and not get too carried away.
However, it occurred to me that the leases themselves are potentially undervalued provided the csg sector remains hot. Total market cap is around $16.5m .. and ESG says the potential is up to (and probably a lot less) than 3,500 PJ. IF .. and its IF good coals are found that are high in gas etc .. then the company will be rerated maybe up to 20 or 30 cents. But the real investment opportunity then will be in the event of a takeover.... even a cap of $30 is small beans for a major csg player looking for more acreage adjacent to QLD. They are large leases and many other players would be interested.
Just a thought ... comments most welcome.
H
OIP Price at posting:
15.0¢ Sentiment: LT Buy Disclosure: Held
