I guess when I said rerating, I should really say that the market now sees the potential for consolidation in the industry beyond what has already occurred. I believe that funds etc. now see that there is a real prospect for some of the smaller players to be swallowed up by those that are aiming to get feed for their large LNG projects, or that those that do not get taken over can benefit from the higher gas price market that is emerging.
This commodity is ultimately going to be priced against other globally marketed fossil fuel substitutes. We already know where they are going price wise. BOW is targeting 200Pj of resources this calendar year from Don Juan and they have 55% of it (that is only from half the area). Not bad for a tin pot company with 6cents a share cash backing as well.
regards DF
BOW Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
