breakout, page-9

The Australian 17th August
Pure Speculation by Robin Bromby


New attractions

INVESTORS are spoiled for choice these days. Where once it was pretty much gold and base metals, nowadays there are all the speciality metals (molybdenum, tungsten, rare earths), uranium and the newcomers, coal-seam gas and underground coal gasification.

In its latest weekly client note, BGF Equities makes the point that the market again has a mind of its own and doesn't want to listen to economists' warnings or pessimists. It notes that the coal-seam gas sector is now well on the way to being a supplier for several mooted liquefied natural gas projects.

In the past few days we have seen Westside Corp (WCL) announce the expansion of CSG exploration with 16 more holes to be drilled in its Bowen Basin properties, while WHL Energy (WHN) can earn up to 51 per cent of a coal-seam gas project in Kansas. This project is in the Cherokee Basin, which has more than 70 producing CSG and shallow oil wells. And Icon Energy (ICN) says it has discovered a new CSG reservoir north of Goondiwindi.

BGF says a less advanced, and therefore more speculative sector, is the underground coal gasification crowd. The report says Linc Energy (LNC) has performed well but that three other good entry points were Carbon Energy (CNX), Liberty Resources (LBY) and Regal Resources (RER). Regal has just lodged applications in Victoria to get approval for its coal-to-liquids project located between Melbourne and Ballarat.


Haven't been doing me homework lately, apologies if you've read already. Their ann/presentation today sets out in detail the IP and aims of the company.