Holy,IMO it is very difficult to evaluate the various CBM...

Holy,

IMO it is very difficult to evaluate the various CBM companies as they are all at various stages in the development of their resources.

To assist you, you may find the following helpful:

1. WilsonHTM Research Report dates 10/01/07:
http://www.sydneygas.com/content.php/31.html

2. ABN-AMRO Morgans Research Report dated 24/10/05:
http://www.molopo.com.au/analysts_report_contents.html

3. MPO Feb 07 Presentation:
http://www.molopo.com.au/presentations.html

An analysis of the market values of the two companies compared with 2P Reserves or forecast short term profits would probably indicate that MPO is the best value. However, I copy from SGLs website its statement on its total resources:

"SGL's Total Resource

The Joint Venture estimates that there are around 63 TCF of gas-in-place within its Sydney Basin acreage.

Recovery factors of 90% have been seen in some high permeability gas fields in the US. For planning purposes, however, Sydney Gas has assumed a conservative gas recovery rate of 63%, which was provided by Cawley Gillespie in their Reserves Report of 2004. Even using these assumed recovery factors, potential gas recovery is significant and ranges from 19 TCF to 32 TCF, provided that the geological model is consistent across the Sydney Basin.

If so, this could satisfy Sydney's gas requirements for over 100 years at the current rate of consumption.

Although the area of the Camden Gas Project is a small part of the Joint Ventures total holdings, if successfully developed within the next 3 to 4 years, this Project alone has the potential to provide approximately 30 petajoules (PJ) of gas per year (based on the assumed recovery rate described above). The Hunter Gas Projects could add another 20-30 PJ of production per annum given the thicker coal seams of those areas and the good gas contents.

This is a significant percentage, given that New South Wales' total gas consumption, imported from other States, is in the order of 150 PJ per year."

I repeat "potential gas recovery is significant and ranges from 19 TCF to 32 TCF".

Regards

SP