an interesting day ahead, page-9

Today will be a very interesting day I totally agree.

The European Union needs to push Greece to the precipice to enact real reform, bailouts without change are no use. At the same time the integrity of the EU is at stake and it is highly unlikely that they would allow a member country to default without a bailout and put the stability of the EU model at risk. A political game of chicken if you will and the markets don't like that kind of uncertainty.

All that aside, the lack of any announcements by management brings the situation that we have now where the company is difficult to price fairly, thus a 7 cent drop in an hour, has anything changed since yesterday? No, but any kind of concern in the market will quickly punish ESG because there is nothing else to go on, no future reserve or flow expectations, no real idea of current reserve or flow expectations and so forth.

In my opinion this represents an opportunity over the near term to accumulate in a sector that is actually more defensive than most realise, as shown by oil being down only 0.62% overnight. The company has no direct exposure to the European economies, it has no debt and is well capitalised with the option to produce income through electricity generation which is a direction I believe the company is pushing in as discussed in their open briefing. Wilga park can go up to 40MW, a rough envelope calculation using wholesale rates of $100/MWh means Wilga park could earn Gross $4,000/hr, $96,000/day or $35m/year. As it's currently running at 10MW according to the website this number can be divided by four ($9m), either way it's a defensive, long term cash provider and an option that many other explorer's don't have.