sto/esg/gastar/hgo tranasction implications, page-30

Bagasas its not a claim its a fact

As at today here are the following respective reserve standings

ESG 21PJ's 1P 336PJ's 2P 1300PJ's 3P

MEL 2.3PJ's 1P 247PJ's 2P 1389 PJ's 3P
(Note these are NET reserves to MEL)

So there it is in palin black and white, if you don't believe me go have a look for yourself at ESG's latest presentation and MEL's latest presentation

However here are 3 factors which make ESG far superior in my opinion at the moment

1. There wells are flowing at better rates

2. ESG has something like 6TCF Gas In Place and aims to have like 1300-1900 PJ's 2P By end 2009 ESG

3. ESG's grounds already have better infrastructure, powerplants and are also located next door to Santos


The question is even with all these superios factors is ESG worth 9-10x MEL? My answer is no perhaps 4x