mel - key points

* Northern NSW (Clarence Moreton basin) conventional and unconventional gas producer

* Largest independent, uncontracted gas reserves on east coast (see recent transactions in peer companies Westside Corp, Molopo, Eastern Star)

* Will benefit from NSW govt lifting moratorium on gas (huge shortages) drilling a few weeks back.

* Strong management team (former Exxon, Esso, Shell, Eastern Star Gas execs)

* Reminds me of Eastern Star Gas (ESG) ? will likely get picked off. ERM power has been building a stake ? they are bidding for NSW govt power assets and are a vertically integrated player; i.e. could use MEL?s gas for running their plants

* NSW only supplies 6% of its own gas and existing gas contracts begin to expire 2014. East coast gas prices will go north from that point as most domestic gas will be sent to GLNG, APLNG, etc. MEL will be a beneficiary you would think

* They completed a capital raising recently and now have ~$30mil in the bank

* stock currently trading at 20c which looks to be a solid level of support. This time twelve months ago the stock was closer to 60c. Ballieu's target price is ~60c