For those wishing to get a benchmark of the value proposition...

For those wishing to get a benchmark of the value proposition here, one need go no further than the Sunshine Gas (SHG) share price which was up another 7% today and reached $2.00. That gives SHG a market capitalisation of around $540m. This compares with BOW at about $35m.

The only driver of the recent appreciation of SHG share price has been the ongoing success of the Lacerta drilling and field development next door to BOW and covering the same coal measures. That permit which is owned 100% by SHG, is about the same size in area as the initial BOW evaluation area...and where BOW has a substantial additional permit further west to be evaluated in a subsequent stage. Of course BOW is only entitled to 45% of the initial area (463sq kms), with VPE and RPM sharing the remainder. But BOW retains 76% of the additional permit of about 430sgkms.

So, what conclusion can one draw? For mine, I think assuming BOW's testing continues to reveal thick gassy coal measures over the initial area, BOW is very likely worth a multiple of current price. If the additional permit area comes up trumps, then multiply by 2 again. And then there is the propsectivity from the other core activity in the Cooper basin etc. (oil).

regards
DF