Nothing really new in here but still making the news which is no...

Nothing really new in here but still making the news which is no doubt pushing the share price along. taking a breath this morning though.


SYDNEY, Dec 30 AAP - Coal seam gas explorer Eastern Star Gas Ltd (ESG) says it
has received several non-binding proposals to invest in its assets or company,
although none has yet resulted in any firm offer.

The company responded this morning to a request for explanation from the
Australian Securities Exchange as to why its share price had risen in recent
days -- doubling during the course of December.

ESG said the company didn't know of any specific reason why its share price had
surged.

Shares in ESG closed at 69 cents on Monday, compared with the 31.5 cents at the
end of November.

The Sydney-based company noted, however, that there had been a number of
transactions in the coal seam gas sector, which could mean Eastern Star's assets
were undervalued.

Last week, coal seam gas producer Sydney Gas Ltd agreed to a $171 million
off-market takeover bid by AGL Energy Ltd, and Arrow Energy Ltd said it would
take over explorer Pure Energy Resources Ltd for $673 million.

AGL also earlier this month acquired interests in the Gloucester coal seam gas
project, north of Newcastle, from Molopo Australia and from AJ Lucas Group.

Eastern Star told the stock exchange it also had received several non-binding
offers from potential suitors, although none had resulted in firm proposals.

"ESG is presently unaware whether any firm proposal will be made, and if it is,
whether it will contain acceptable terms and conditions," the company said.

"There has recently been an increased level of corporate activity in the NSW
coal seam gas sector which has highlighted the strategic positioning of the
Company," ESG said.

ESG also said it was confident that it would upgrade its reserve levels during
2009.