Please see the following points in regard to compelling value...

Please see the following points in regard to compelling value for Sunshine Gas north of $3.00 in the not too distant future.

Market cap/shares on issue in Queensland Gas and Arrow Energy in comparison to market cap/shares on issue in Sunshine Gas. Comparison in this regard reveals that Sunshine Gase shares are extremely cheap and certainly have the potential to go north of $3.00 in the near future.

Consider that currently Sunshine has 469 p2s.and in excess of 1000 p3s, certification upgrade expected anytime soon.

Further 40 production wells being drilled this year.

Sojitz deal in the wings to buy 20% of Lacerta.

Potential for further certification for reserves from other projects such as Overston, Atria, Westside Farmin, Tilbrook and Cullen.

These projects are reasonably advanced and further positive news expected within next 3 months.

Oil price tipped to go from $150 to $200 this year. Gas price related to this.

Strong potential takeover by other major players in the industry.

LNG project at Gladstone maywell be the first plant finished, therefore making Sunshine an extremely attractive takeover target.

Member of ASX 300 now strong interest from instutional investors.

Currently being covered by at least (4) four brokers including Bell Potter, Wilsons and ABN Amro Morgans.

Current price per gig as high as $3.00.

When analysing all of the above information it is not hard to see a valuation well in excess of $3.00 per share in the short term, which puts SHG market cap somewhere around 1 billion dollars.