My belief is that the discount between the share price and the value of the assets comes from the recent track record of Directors Mccaul and Mckay. These guys have spent a lot of shareholder money over the years and made lots of promises but in reality they have not delivered - except for themselves.
I know there are folk out there, like Antiques of Woodstock, who remember that over a decade ago these Directors made lots of money for shareholders in Sunshine Gas or Arrow and that the reason why this hasn't happened with Comet is because the Directors have been unlucky or unfortunate but they are people of good intention acting in the Comet shareholders best interests.
My view is that, when they made all that money with Sunshine Gas, they were just lucky and happened to be managers of a coal seam gas business when there was a boom in the coal seam gas industry. Today however, it is closer to a bust in the gas industry. You need quite different skills.
These guys track record at Comet speaks for itself. They have failed. Under Directors Mccaul and Mcckay, since 2009 the company has spent at least $100 million on exploration and appraisal and yet the market values the business at $50 million!!
If these guys were of good intention, they would recognise that after 10+ years of trying, they have failed and in the best interests of the shareholders, move on and bring in fresh blood and ideas. They got a bloody nose at the AGM in November but nothing changed. Conclusion - they are not people of good intention acting in the shareholders best interest.
For costs of producing gas, I would refer you to this report released a few months ago by the Australian Energy Market Operator, section 6, page 13. You will see that costs for undeveloped gas, like Mahalo, are $5-7 per GJ.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)