I am also a relatively new shareholder bought about the...

I am also a relatively new shareholder bought about the beginning of December last year.
IMO, MEL is hugely discounted, should be at least 5c when production is confirmed, 7.5c in six months when a good cash flow is achieved and in one year possibly 10c, the reasons behind my price expectations are as follows:

• I am expecting when all 3 Vali wells come into production, which should be in the next few weeks, it should be able to achieve at least 12mmscf/day or 4.7BCF/annum, which should give it a net cash flow to MEL of about $700,000/month or $8.4 million/annum
• Once ODIN comes into production, IMO in a few months time, at 6.5mmscf/day or 2.5BCF/annum, it should give it an additional net cash flow to MEL of about $450,000,000/month or $5.5 million/annum (based on a higher Gas spot price)
• Once both Odin and Vali come into full production that should provide a net cash flow of about $3.5 million/quarter
• It is estimated that the 2 gas discoveries could be gas producers for over 20 years but they will need to drill additional wells to keep production levels up to around 20mmscf/day.
• Later this year MEL will be carrying seismics over the unexplored areas of their highly prospective tenements to look for additional oil & gas prospects and very likely to find more.
• Next year they are planning to drill new oil & gas prospects in their highly prospective areas, if new discoveries are made then it could potentially double their cashflow.
• There is also the possibility, that one of the 2 other JV partners will make a takeover offer for MEL
• BOD are also looking at putting other projects into MEL

In summary MEL has a market cap of about 25million and this year if all goes to plan should achieve IMO a cashflow of about $1,150,000/month or $13.9 million/annum, a PE of less than 2, giving it the funds to carry out further exploration drilling in the future, to further increase production and cashflow. The under explored areas of their highly prospective tenements provides a lot of blue-sky to its future share price.

All the above is my opinion only and in the oil & gas industry it is high risk game but IMO MEL is a good punt.

The above cash flow figures are my opinion only, based on what has been stated in MEL announcements, however there are a lot of unknowns such as to what gas prices MEL will get, what will be the actual production levels, how much CO₂ is in the gas which needs to be removed and what charges Santos will charge to process the gas. The future quarterlies this year will provide a more accurate guide of what the cashflow will be.