seh, page-24

Rod, you sound well read on the fundamentals so I'm sure you're aware, but if not look at AAG Energy Holdings & Sino Oil and Gas both listed on the HK exchange, both operators of CBM PSC's (CBM being higher on the China cost curve than tight gas) - they are slightly further ahead than SGE on their approvals, by around 12-18 months and are capitalised at approx AUD $900m and $600m respectively with strong gas sales & production being achieved albeit from a smaller resource/reserves base. There's also UK listed GDG who are capitalised at around AUD $1b with a significant resources base & two PSC's under production. Make no mistake, this is the direction that we are heading with the possibility of stronger margins than the peers. Projections show revenue growing to AUD $100m for SEH share at year end 16. You do the math with a conservative earnings multiple despite the strong growth profile going forward. As far as I can tell, non of the peer companies above have released the kind of 'individual well production/decline' info constantly being talked about here... but happy to be proven wrong. GL

Short video interview with GDG chairman from late 2014 on China fundamentals remaining robust. Worth a look.