sto/esg/gastar/hgo tranasction implications, page-54

Bonzaboy, the mkt often overlooks stocks and rarley values them properly

Why is MEl so cheap? well why was PES trading under at 80c prior to BGs $8.25 final takeover??? I mean surely the mkt could see the value in it?

MEL is not a speculative explorer, its has substantial resources which cleary need a mjor player with deep deep pockets to commercialise and de-risk their path to development

But I note the following comments from Morgan Stanley's update research on ESG

We raise our price target for ESG from A$0.80 to
A$1.10 following Santos’ July 2 announcement to
increase its interests in the NSW Gunnedah Basin. We
reiterate our Overweight recommendation and note the
growing momentum behind NSW CSG........
The transaction implies an EV/3P multiple of
A$0.74/GJ of gas. The per GJ multiple compares
favourably to 08/09 asset deals in the space which we
estimate to have averaged c. A$0.85/GJ.

key part their "note the
growing momentum behind NSW CSG." and "The per GJ multiple compares favourably to 08/09 asset deals in the space which we estimate to have averaged c. A$0.85/GJ.


Do the math on what MEL's 1500 GJ's 3P are worth at 85c/GJ as opposed to the current 5c/GJ

I agree though MEL need better management and also a major in their corner to help foot the bill, or kill 2 birds with one stone and just get taken over