Aimforsimon,I can see where you're coming from regarding the...

Aimforsimon,

I can see where you're coming from regarding the reserves comparisons but unfortunately, as SF has alluded to, it's just not a fair or accurate assessment... (but fun to do - particularly between MEL and ESG given the disparity - I do it sometimes when I'm dreaming of MEL's future).

I do think that one day MEL's CSG reserves will be recognised (and hopefully) valued the way ESG's are but they shouldn't be just yet for a few reasons:

- ESG have now got decent flowrates (2.2mmscfd) proven from their Bibblewindi lateral - MEL have not... (270,000SCFD is a significant way below)... BUT I think that the ESG laterals should encourage us that MEL may be able to attain these values from their laterals in future.
- ESG have interest from "majors" with Santos happy to pay $1 per share equivalent for HGO's share of ESG.... MEL don't have outside interest ...yet! And there is plenty of reason to believe Santos will come for the remaining % of ESG they don't own at some stage as they try to prove up their reserves for LNG purposes or otherwise.


I could go on, but this is not designed to be a cross-thread ramp/rant. I do not hold ESG (I did hold HGO) but as I've mentioned before I think... everytime I have a few grand spare to buy some ESG which were always undervalued under $1 - I end up buying more MEL. The reason being, MEL have CSG reserves under their belt (almost in their bottom drawer), but they also have HUGE potential in conventional gas reserves - and I'm convinced that long-term there is probably more value in MEL.... and I'm investing for long term. Also, conventional gas should be easier (read, Less expensive) to produce because CSG industry margins are getting thinner as the EPA cracks down on water disposal from the de-watering.... and ESG, I'm sure Seamfiend will agree, seem to have plenty of water to dispose of!

That's my simplified take on the comparison issue. Can't compare on reserve metrics alone... but they can provide a small guideline for where MEL could go in the future. But, my eyes are firmly on the Kingfisher, and other wells such as Mackellar and Mackellar North which could be anything! (In saying that, still hoping Corella P18 is hugely successful to maintain MEL's momentum!).

And I do agree with you that someone is probably lapping up a lot of stock as it "washes" (as someone mentioned the other day) through from the SPP. IMO, there's definitely value in buying MEL under 75c like you said.