This is Mr Lincoln Augustus, first second cousin of...

This is Mr Lincoln Augustus, first second cousin of Holymagiman

Thank you for the very interesting and informative Gastar link that you have posted, Mr Hardmano. If everything falls into place, and it appears that they are, then I will have to stick my neck out and state that ESG is looking most undervalued indeed.

Mr Casey has hinted in his Dec 8th 2008 announcement regarding the Wilga Power Plant, that it could perhaps be upgraded to 40MW in time., viz:

"The new flowline, which will have capacity to transport more gas than Wilga Park will require even when expanded to 40 MW"

So that is one source where the ESG methane can be profitably exploited. It would be interesting if we could work out what the profitability of the Wilga Power Plant will be when it is fully functional.

I have had another look at the Contingent Reserve and Proven Reserves of ESG, and yes, I find myself sharing your optimism.

However all this does expose ESG to unwanted attention, but my thoughts are that if any such unwanted attention were to eventuate now, the least it would do would be to stir up a hornets' nest of an auction, just as is happening with PES.

It would of course be very good for nothing to happen for the moment as far as takeovers go while reserves are progressively proven up and increased, and increasing reserves is exactly what ESG is actively doing for now, if I read Mr Casey's statement right. We will have to wait and see, but there has been an unusually active market in ESG as of late, notwithstanding Holymagiman's purchace of 2 more shares recently, and my purchase of 3.

Queensland appears to be the area of choice for the majors at the moment. It was not always so, even as far back as 1 year ago. I feel that it won't be long before serious interest swings southwards to NSW, and I don't think I am wrong on this one.

God bless
MLA