amillionoppies, page-10

wasa I want to be careful not to crossthread here so it must be done in light of VPE.

VPE have imo a low risk access to around 500PJ of quality CSG tenements. Stuff that can be drilled and shipped to market under near-term market constraints - price. I am excluding DJ from this as there has not really been much info on the commerciality of that resource, despite having reserves there. This may change, but for now it is out. VPE MC is currently $144m.

BOW is a great opportunity, mostly because of the tenements they hold in the Northern Surat (Comet and Norwich blocks). I think in time it will be proven that they have access to some commercial resource there, lets say around the order of 3000PJ. Note their GIP estimates are higher, but I think they will very likely hit those targets and do so in the next 12 months. Their current MC is just below $200m. And again no value on DJ.

WCL is well on the road to running a successful lateral program having linked up Tilbrook 8a and 8b with the vertical. This data will feed into their reserves and I think we should get a good sized 2P and 3P upgrade. They are targetting around a 1500 PJ resource. I am not sure if this resource is 'as commercial' as the BOW one, but I believe that it will be. Their current MC is $50m.

I am a BUL lover, but we are a long way away from seeing this pop. Relative to the other CSG operators and their reserve positions, it is 'overpriced'. On balance it is well priced and they most certainly have their ducks in a row. I think there is still plenty of time to get into Blue. They have so much going on and with almost $50m in their pockets to drill and pilot test their tenements (most of any small cap CSG), they really are one to watch.

STX are just ramping the market with there resource. The coal characteristics they presented the otherday (with the exception of the net coal and individual seam thickness) seemed all pretty marginal to me. What is the name of the company again? Strike Oil right? So they have gas in Texas, CSG in SA and talk of a Vic GTL. Maybe they should focus on oil as the CSG and GTL is not a walk in the park. Not to discount the fact they have a considerable gas resource there with unproven commerciality, I am watching for AGKs drilling results of the Innamincka dome first as well as seeing who they (STX) will be getting to do there drilling for them. They dont exactly have massive wads of cash to throw around at the Southern Cooper drilling, so they had want to not screw up the first few wells. Could be a company maker, but for now I still have reservations. There current MC is around $62m and they are talking about some extremely serious numbers for future potential. Sounds like ramping your own stock to me : )

There are heaps of others to also look at like MPO, ESG, AOE, EPG, COI etc etc..

But for now, and in my humble opinion only, VPE is outclassed in terms of CSG by many other players with better management, far better upside potential, who are very equipped (capital) to do so.

BOW is my first pick as it is completely unhinged in its permits that also have a certain critical mass and commerciality about them that could throw BOW into the big time. I also think WCL have a great chance of success, but BOW is just bigger and has a 'better placed' resource. It is jammed right between the Pure Dingnose and Duckworth finds as well as Sunshines Atria. I really like the prospect of VPEs permits, but they have such a small holding. Why the hell did they farm out so much of the permit for such a small amount. Was management drunk when they did it?

Sorry for the dribble, you did ask remember : )

And for any VPE purists out there (is there such a thing), I am not talking about a collapse of VPE. The snatcher prospect looks great and the CSG permits are also of a good quality, just in my opinion there might be some better upside on some other juniors who dont expose you to the gravy train team you have at present.

SF