funny money is on

Nice pump from the The Australian in the 2011 New Years punters list.

Under the funny money title, we came in as #3 on the list of 100 stock picks across the ASX.


3. Bow Energy (BOW)

A coal-seam gas explorer in central Queensland, trading around $1.16. Wilson HTM has a 12-month target price of $1.80. There is upside potential in discovering new assets, rather than an earnings play. Could be attractive to a bigger player, and so has the potential to double in price in two to three years.

We are probably just a few weeks away from close to doubling our current 3P position (hoping for close to 2000PJ). There could be a delay on this as I doubt they have been able to complete the coring operations in the Northern section of ATP 1031 with the weather. I dont see a pressing need for BOW to go out and get a reserves upgrade based off their current coring results (except to 'satisfy' the recent buyers of stock).

Hopefully the frac jobs at BW have been completed. I would imagine that ops have been retarded their for a while so probably a delay on those results as well. Also hope the lateral wells went in before the weather killed everything. More delays on 2P program and its going to make meeeting all the other 2P targets for 2011 pretty tough. Their 2010 targets were pretty ambitious from the outset and I dont think I could understand how they were planning to meet them.

Anyway, this is bloody good exposure me thinks. Hopefully we have some strong results starting to flow through on the 2P in 1H11 and then we will be kicking that $1.80 target easy. Thats a MC of $720m and given the extensiveness of their 100% owned resource, we should be well able to sail to that if we have commercial flows.

Cheers,

SF