too many zeros

Did I read MEL figure they have a gas reserve in the Clarence Morton Basin of 24,000 PJ?

Perhaps that is GiP and only 20-50% can be recovered?

Recent CSG company valuations have been around $0.50/GJ on a P3 reserves basis I think. As 1 PJ is 1,000,000 GJ, each PJ of P3 reserves is worth $500,000 on a takeover basis.

In a soon to be rising east coast gas market, a reasonable mid term price for gas might be something like $7.00/GJ or $7,000,000.00/PJ.

So, at 20% recoverable from 24,000 PJ GiP, the gas would have a sales price of:

0.2 x 24,000 x 7,000,000 = $33,600,000000.00 and on a P3 valuation MEL should be capitalised at 0.2 x 24,000 x 500,000 = $2,400,000,000.00.

At 50% recoverable from 24,000 PJ GiP the sales value of the gas would be $84,000,000,000.00 and MEL should be capitalised at $6,000,000,000.00

Whether or not a corporate play was clever enough to launch a low ball t/o for MEL, would the Fed Govt permit such an undervalued transaction in terms of national interest

Surely not !

Dex