buyer and seller ratio enquiry, page-13

Jonboys,

There are a good article in SMH today on the coal seam gas sector. One very interesting point that the journalist highlights, which I feel is worth repeating, is that the M&A activity taking place at the moment that is driving the revaluation in the sector is being done by very large and very serious global players - Petronas, Shell, BG - (they don't get any bigger).

The difference we are seeing in the Gas Bubble versus say the dot com bubble is that the dot com bubble was primarily driven by day traders and speculative investment by second and third tier investors. The current heat in the Gas sector is driven by globally recognised players and is merely reflecting the cost of energy and appreciation a sector that has not had appropriate focus to date. Gas is still significantly cheaper (and Cleaner!!) than Oil and coal and with improving technology the ability to extract it is improving.

I also recognise that there has been significant appreciation in the last few weeks and there may be short term fluctuations. I am comfortable living with these in the expectation of very positivie returns in 1-3 years.

Cheers