lack of news keeps downtrend in place., page-6

Look on the bright side, the sp has slipped back from 11.5/ 12 on low volumes much as Auwiga predicted, but it hasn't really looked like going below 8c.

I give him credit for getting that spot on, but I still think its a massive stretch of the imagination to pluck a low from five or so years back and then suggest a date for this to be realized.

Eitherway 8c is where Mathews bought and the weather has finally cleared in Northern Qld. BUL is about six months behind schedule, but in the medium term view, we are very close to hearing something about dewatering liberating gas from the p seam. Again, you can bet the Mathew's fund would have looked into the probability of a commercial result before investing. This is not in itself a guarantee in anyway, but it is a v. good indication that based on the core sample results, these coals are believed to be viable for commercial flows.

I got the sense from the last quarterly that the tone had changed from one of trying to talk up the prospects and explain each turn in the road to one where they won't necessarily fill in the blanks anymore. Ie, if some investors can't see the significance of the capital raising, then let the weak hands or day traders drop off. Sooner or later flow rates will be announced and there will be news about a drilling program for Saphire, Kerlong.

Meanwhile Shell/Petrochina have announced they are moving to build the Moranbah Gladstone pipeline. Most of the access agreements have already been settled and the Qld gov't will probably wave it through as it reduces pressure on the the Dalby csg development and derisks the gas supply equation for Shell and BG. They wouldn't be building that pipe to only gain access to the slim surplus from MGP. Most of the MGP is committed already. The pipe is going ahead to tap gas reserves from ATp 364- expanding fields like Annandale and Sth Walker, which just happen to run off into Bul's blocks.

It is not hard to see the strategic thinking of the insto's who recently bought in. In a few short years east coast gas prices are going to climb significantly. At the same time it appears we are going to get a carbon price which will favour gas over coal for stationary power.
And all BUL has to do is to establish they can get commercial rates to flow out of what we know to be gas saturated coals.