$1.21 looks cheap, but is it a bear trap?, page-2

Hi MikeMennell,

IMD's stated strategy is to gain 30-40% of revenues from oil and gas (pg 18 2012 agm) in 3-4 years. My thesis is that this should counteract the downturn in the minerals division. I really cant see why they can't.

http://www.eia.gov/totalenergy/data/annual/pdf/sec6.pdf

Check out page 4. The graphs for Number of Producing Wells and Natural Gas Well Average Productivity. Look at the increased number of wells because of lower production from these wells. Does that mean more holes to dig equating to more drill fluids and use of down instruments?. I believe The potential for oil and gas revenue is monstrous.

What about Chinese oil and gas? China has second largest gas reserves globally. What about under penetrated mineral geographic locations?

Official data from ABS shows capital expenditure for mining rose 2.8 per cent. 2013 is factored to be slightly lower. Yes very flat but not the end of the world. Which leads us back to paragraph one: can the oil and gas division counteract the contraction of the minerals division? Time will if its a bear trap or not but always remember that I could be completely wrong!