pure metgasco

This is mr Lincoln Augustus, first second cousin of Holymagiman.

It has been a most lazy day today and we have just been smoking the smoke and been thinking the thoughts in the boat today, waiting for those lazy fish to bite.

And, for want of anything better to do, we were just comparing Metgasco to Pure Energy.

At the time it fell, PES had 522 PJ of 2P and 2510 PJ of 3P reserves certified.

And PES had no conventional gas.

Compared to Metgasco's present reserves of 397 PJ of 2P reserves and 2239 PJ of 3P reserves.

With Metgasco also having the huge potential for a bonanza of conventional gas.

PES fell for a price of $1,020,000,000 to British Gas.

It would appear to us that BG will need more gas to satisfy its commitments.

Metgasco's current market cap at a share price of 60 cents is about $147,000,000, or about one seventh of the total value BG paid finally for PES.

And the metrics of the deal appear to have changed overnight.

PES, as yuo may well remember, was flying under the radar just before it got suddenly fought over and then taken out.

And the share price went up to reflect its value.

We think that MEL is definitely flying under the radar.

And we envisage that it would not be a problem to link up MEL's gas via the Lionsway Pipeline and then, via Roma, on to Gladstone.

Or for the MEL gas to be used in some sort of gas swap mechanism, to mantain a supply to Gladstone.

And the most interesting thing that the family have discussed is that Metgasco appears to be trying to Joint Venture up to 50 percent of PEL 16

As they have stated:

"JV partners are being sought for up to a 50% interest of PEL 16.
 Incoming parties will be given opportunity to participate in downstream projects
 Lions Way pipeline
 Richmond Valley Power Station (30MW)
 Northern Rivers Power Station (200MW at Concept stage)
 Broader strategy of power or gas across state borders"

The family thinks that all this is very interesting, as it means that whoever Metgasco have been talking to would have been given a good briefing on the assets available and would have been able to read the book from end to end, and that knowledge, to us simple Jamaicans at least, could well invite totally unwanted attention from totally unexpected quarters.

But that is but our thoughts, and our thoughts are inconsequential in the scheme of things.

Dinner calls and we must go.

Blessing of the Lord.
MLA