AWE Limited has announced a potential 13-20 Tcf of gas in place...

AWE Limited has announced a potential 13-20 Tcf of gas in place in its Perth Basin shale gas acreage. The announcement surprised us.
It is most unlike AWE to make such claims.
Hitherto it has been a most conservative company not willing to join the breast beaters and drum bangers. Still when your share price is languishing something like this provides a nice shot in the arm.
Maybe it is a reflection of the new management style of incoming former Roc Oil CEO Bruce Clement.
Its press release said the gas was in the middle interval of one of the Perth Basin shales the Carynginia Shale which according to its estimate had a humungous amount of gas in place.
Of course confirming that the gas is commercial and producing it is another matter. AWE said that further work will be required to ascertain the viability of the shales.
And of course the press release has the by now mandatory comparisons with shale gas plays in the US.
And was replete with sentences in bold for emphasis including this one In AWEs view, the strong commercial drivers apparent in the Perth Basin could allow this Shale Gas opportunity to provide Australias first commercial venture in the growing global phenomenon of unconventional Shale Gas production.
Be warned when egos get ahead of reality it is time to think about moving on to another investment.
On the other hand we investors are in the market to make money and if can do that with companies that have a habit of gilding the lily then by all means we should do so.
But we need to be aware that that is what they are doing.

Remember we once said that making a silk purse out of a pigs ear is OK until the purse delivers a porcine snort revealing its true origins.