only 3,419,045 more shares to blocking stage, page-85

nervous,

$2 bring it on!

There are two competing forces working on MEL at the moment and the price is likely to only move in one direction.

The real question is, who is willing to pay more? or maybe to put it another way, who demands the most certainty of tenure over the gas supply and what price will they be able to fetch?


ERMs move has been very well done. It has obviously put the jitters up LNG. The wonderful thing about the ERM move is that it is confirming the domestic market interest in gas supply.



MEL has always had a better prospect of delivering into a domestic market because of the size of the market, the location of their resource, the capital needed to move it too the market, and the low risk of all this happening. The slide DJ threw up about 2 years ago which has been used several times since, clearly shows the sizeable NSW gas demand.

LNG options for MEL might be able to attract a higher price, but it also carries substantially more risk imo, not to mention time to development and transport distance.


I agree absolutely with hs that a low ball offer on MEL would be disappointing, but perhaps successful. I know that I would be very interested to see what they are able to find on the deeps of the RRSS with the Rosella well. The conventional has a lot of potential to add some substantial value to MEL.


With the gas zones they hit last time, I find it interesting that MEL hasnt engaged with a petroleum engineering specialist that may be able to carry out analysis and recommend techniques for prodcution enhancement from zones like those in the Gatton. The result of the fracced zone @ KF were pretty disappointing.





Cheers,

SF




PS: HELLOSAILOR! get off the plonk mate ;)