My pick it is the market. Very depressed towards oil/gas and CSG...

My pick it is the market. Very depressed towards oil/gas and CSG at the moment. Even WCL dropped after some great announcements today.

Dont expect too much until Gladstone gets its first FID approved....and then ...WATCH OUT.
About a six month wait. Not too long.

Tui, you're assuming that STX will only rise on PEL96 activities and nothing else. I personally beg to differ as I see their US drilling also offering some compelling upside. It is this very business which makes them so unique to the other CSG players - in that they are self-funding and not having to dilute its holders to the point that whatever value is in those CSG project will end up being diluted to death by the time they are developed.

This is not to say that STX won't need to raise capital again since it is always prudent to maintain a fatter balance sheet if possible, and it can never be fat enough. For example, if and when they engage in full blown drilling progamme in PEL96, I'm quite sure they will need to raise some capital to fund it. But that would only happen if the pilots are great - and our share price should be well north of 50s by then anyway!

Hartley's earnings forecasr downgrade is not unexpected if you see their assumption for gas was US6 and forex 0.75c - both wrong to the upside. Combine this with the production downtime in September, I'd expect their earnings this year to be hit slightly. But I totally disagree with their downgrade of 2011 earnings since I believe the gas price would have recovered significantly by then (already happening now), though weakness in USD could deteriorate further.

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