why is this so cheap, page-3

One thing to remember is that MEL's current 3P, 2P AND 1P reserves are all on tenement block PEL16.

3P Reserves are currently at 1,538PJ and based off the current market cap she is extremely cheap. They have proven the gas is there and meets "commercial criteria" by releasing their first 1P reserves.

Im happy to sit and wait on my holdings while we see what eventuates for PEL13 and PEL426. I should not forget to mention that MEL also have conventional gas with the recent discovery of the King Fisher field. I think MEL are a good buy now that cash is at bank. They still have minimal shares on issue and plenty going for them IMO. I guess they dont have the same excitement surrounding other stocks due to the fact they are not located in Queensland but are located in NSW. Based off recent Take overs and the prices paid per GJ for 3P reserves surely she has room to move upwards.

I may look to accumulate further if I see more weakness. I have built up a nice stake and I dont believe the CBM sector is a bubble so to me MEL is good buying..could be wrong though.