in a boom market?

Pretty hard for MEL's weekend Quarterly update to compete with the world today , with silver dramas as well as the killing of Bin Laden.

But it occurs to me the release would have had quite a dramatic impact in a more robust overall market.

My take is it's a very positive and assured, almost calm, statement of position.

On conventional, we have sustained production from Kingfisher,a dramatic increase in OGIP in Mackellar North and confirmations of a view of field linkages.

In CSM, we have 2 successful wells completed in the Harrier program, and a deferral of further drilling-with a 'standing down' of the Lucas rig. We have a promise of Q2 first reserves in PEL 13.

We have a Worley Parsons positive feasibility report, but importantly a first highlighting of a direct dedicated pipeline to Gladstone.

And we are told commercial discussions are ongoing with several parties.

My conclusion- management have what they need to strike a first company making deal. It might be a GSA (my strong preference), or a farm-in, or an outright sale.

The calmness, together with the lower cash spend forecast for Q2,suggests to me we are not looking at a capital raising in the next few months-if that were the plan/need, would have been done by now-but rather looking at a transactional solution-auction?

This fits with what Grant King said yesterday-there has been a real shift in demand since six weeks ago. And it fits with the 'robustness' reported by ESG.

Except that there is no shift in demand for MEL stock-gotta love these non-boom markets, ignoring of course that there is an lng boom underway!