10/06/09 91 cents, page-24

My most conservative assumptions:
1 They only prove up 75% of their 3P target for end of 010
2 Their 3P gas only gets ascribed a 25 c/GJ value

That makes them worth $350mm, nearly A$1.70 ps.

Of course worse could happen. Given what they knew about Comet in particular, and prgress to date imho they"re more likely to exceed than dissapoint on the target delivery.

I am expecting undeveloped 3P in general to drop in value as it comes with much reduced bluesky attached. I expect however the value of quality well located assets to hold better. Comet's apparent coal qualities, proximity to Gladstone and to pipelines (if not it's prox to BG fields) should ensure value even if more marginal resources start being deemed as stranded gas.

Just my thoughts. Anyway I am reasonably well loaded with them now.

Not looking good for resources today though. Those waiting for low 70's (or lower?) might get lucky.

EL