lateral ... as in thinking , page-3

My dear Fiend & Dex,
My immediate reaction on hearing that LNG had taken a 5% stake in MEL was one of excess elation but after research revealed that LNG commenced buying in July when the sp was on its knees and their average buy price is .42c I sobered up - I was nursing a serious hangover.
LNG has a MC less than MEL so they are not a giant with a big club more a weener with a little willy. The economics of LNG's Fisherman's Landing defeat me but there seems little doubt that somehow they are gonna do it. Even so, I have come to your conclusion that the cash is better invested in a hot prospect than languishing in a bank.
I don't know if you are aware of a new research note (14 September) - which covers the CSG industry? I don't want to name it for obvious reasons but it's a name not to be sniggered at.
It takes a good look at the Santos/Total deal and is more impressed than the markets first reaction.
For example: Santos got a $/GJ 2P price 0f $1.08 and $/GJ 3P of .73c. This compares with .93c and .60c (Shell/TPC - AOE.
And $1.58/.67 for QBC/BG back in Feb 08.
As you know my ignorance in these matters is overwhelming but the really groovy information is in something I would be grateful to have explained.
I take it as a given that you both know the market caps of ESG BOW & MEL and their sp. But anyway!
SP MC 2P 3P estimated value 2p ditto 3P
ESG 92c 900m 988 1818 .84c .46c
BOW $1.30 343 114 600 .3.01 .15c
MEL .53 115 397 2239 .29c .05c

Quote: "assuming the Santos GLNG deal is the new 3P benchmark then the smaller end of the sector is now trading at a signicicant discount to this metric ... the stocks appear mispriced"
"Discounts will always apply until volume and value (read pipeline)potential can be demonstrated"; and he concludes that it's up to our guys to deliver on reserves and timelines. Which in MELs case they are doing assiduously.
Now what value does that put on MEL with a 3p valuation of .05c and .29c?? and ESG at .46c/84c when Santos got .73c and $1.08?
And none of this takes MELs conventional gas into account.
Thank you for your time.