If Kogas are so cash strapped why did they sign up to fund a long term csg research program at Qld uni?
But lets say they don't farm in for the sake of the arguement. Some shareholders might sell I suppose, but I really can't see there being that many as its not like BUL are relying on that money to carry on through 2011.
The fact they haven't issued those 100 million shares as approved at the agm is curious...Still waiting for monday in case management took the 3 months from the agm to mean the end of feb, but assuming it doesn't happen on Monday, then that is a potentially a very positive sign something has been arranged which meant a cap raising wasn't necessary..
Have a look at Stanwell when you get a chance. They bought into BUL at 38 cents and a Stanwell exec sits on the BUL board. The COO is also an ex- Stanwell director I think. Stanwell are pursuing csg as a means to hedge their exposure to coal power, partly as a response to Qld gov't energy policy which stipulates that something like 18% of stationary power must be from gas, and now we have the Gillard gov't's move toward a carbon tax. The details of the latter are yet to be ironed out, but I bet it falls mainly on the power generation sector (similar to John Kerry's Clean energy bill.)
There I go focusing on the peripheral issues...damn it, all I want to see is some flow rates at the end of the day. 1 000 000 scf/d from the lateral and 400 000 scf/d from the multi seam well would do nicely. is that too much to ask from coals with 20 m3 of gas per tonne?
BUL Price at posting:
9.9¢ Sentiment: Buy Disclosure: Held
