worlds largest lng importer to come onboard, page-8

EL,

I agree with you on many of your points, but I think you are being to quick in your assessment of Blues long term prospects and what this deal could mean for them.

I would recommend that you go and review the data from the 814 and 813 wells to gain an understanding of why KOGAS are throwing ~$10m into Blue before even coming up with a farmin deal.

http://www.blueenergy.com.au/_dbase_upl/CSG%20and%20CMM%20Conference%20Presentation.pdf

http://www.blueenergy.com.au/_dbase_upl/080918_BUL_ASX_Saphire1.pdf

The missing link in Blue is there ability to reach downstream. KOGAS will give them the channel to do this. They have a number of options up there sleeve; the most plausible I can think of is Blue/Kogas selling their gas to a larger LNG operator and then buying on export. Given the high capital cost of CSG, I would imagine that this would first occur from 814 with the economics for 813 improving over time.

If you want a bigger hit this year, maybe you should stick with BOW, imho of course :)

SF