I agree, it is very frustrating watching the share...

I agree, it is very frustrating watching the share price.
However, the ducks are lining up for this company.
1) They have very good cash flow from existing assets
2) They are about to get cash flows from Egypt
3) They have recently gone into another tennement in Egypt
4) They have taken the lead in the Shale Gas segment in Australia.
5) They are the one of the first companies to drill for shale gas in Australia
6) They have made a strategic investment in Sundance Energy to learn about the IP of shale gas drilling.
7) They have brought on board a couple of heavy weights with deep pockets to take the shale gas potential to fruition.
8) Atco have the access to the pipelines and Itochu will have access to the markets.
9) The investment in Petratherm is visionary. It is also largely funded by the Rudd/Gillard government thus de risking the project by half for the company for its 36% share.
10) they have taken a position in a very large potential oil provence in Tanzania. Possibly 200mbo's. Look at the Toullow share price over the past few years and the acerage they acquired from Hardman.


Back to shale gas. In order to monetise any gas it will be necessary to sell it into markets at the highest possible price. To sell shale gas into the australian grid will be at very low margins. It ideally will be sold into LNG. Hence the JV with Itochu. Smart move in my opinion.

While some of Beaches management may be on the high side of 50, it is the strategic decisions which will make this company into a large energy company in the long term. Only very well respected, industry eaders can even get a seat at the table in the deals that Beach is currently signing.
MD is moving to one of its investments in the next 6 months. It will be interesting to see what this company does since its share consolidation. It may take an investment in the shale gas and provide additional cash????? after a capital raising. Its not clear from the announcements but something is happening. Look on BRR at the last broadcast for some clues.

What is really required is a few of the super fund managers to realise the potential of this company and be prepared to hold for a period of time.

Patience is the key. If you want short term gains I suggest to go into more high risk companies who may not make it into the long term.


DYOR