Is it possible we have a stk that is almost a 'sure-thing', a 'one-way-bet'?? Strictly speaking every share/company can have something change and fall-over just when everything was pointing towards certain success. Let's look at the facts.
1) I haven't used a oz of copper, tin, lead, iron, in the past 12 months... possibly much longer. (i haven't bought any canned food for ages and drink bottled beer)
2) I use/consume electricity, hot-water, food, petrol every single day.
So my (simplistic?) reckoning is that we are far more likely to see a drop in demand for IO and base metals, as opposed to energy. Gas is a cheap and cleaner type of fuel with ability to provide direct heat, and indirectly provide electricity. Hence, demand for gas is highly unlikely to diminish.
BOW has tenements covering hundreds (perhaps thousands?) of sq. Kms in C. QLD. By the grace of God these are not in vicinity of artesian basin, arable land, high population centres. However, they are within reasonable distance of pipelines, ports and LNG plants under construction.
BOW management has repeatedly stated it will treble gas reserves between May 2011 and Jan 2012. It may well quadruple reserves... and all this in 8 months! Numerous holes have been delayed due to heavy rain but as water has subsided the drilling is flat-chat.
The ONLY possible outcome is that gas reserves will leap exponentially. Afterall, the stranded coal beds are very similar to those held by Arrow energy... and we know how incredibly productive those coal seams have been.
Hence, i feel BOW is one of thse stks that has a very high chance of leaping in price considerably over FY12. By 'leapng' i mean at least doubling. Perhaps it's not a 'sure-thing'.... but it's as near as dammitt i can find on the ASX. How can the SP remain indifferent when the company continues to release a steady flow of increasing gas reserves?
PS. Imagine if the price of gas rises as well!! Now we're cooking with ...
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