Recommendation AOE holds substantial prospective tenement positions, and is developing coal seam gas projects, closer to its key SE Qld markets than any other gas producers. Recent improvements in gas production at the Tipton West project allay many earlier concerns about field productivity. This has increased our confidence in AOE's transition to CSG producer. AOE's Kogan North project is to commence delivery into its contracts from October 2005.
AOE's share price is at a 32% discount to our valuation of $0.54/share. We have upgraded our recommendation from Spec BUY to BUY
AOE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held