Originally Posted by
Footsie
Setting up for a textbook rising wedge/triangle - bullish pattern
notice how the up days are combined with big volume....
a break upwards would need to occur in the next 4-6 weeks above 60c on big vol.
From a fundamental perspective this is one of the cheapest CSG stock on the market
How cheap is MEL?
Below is the message from ORG.
Origin to acquire a further 1,150 PJ (3P) of CSG reserves straddling the Undulla Nose CSG sweet spot Origin has entered into a conditional agreement to acquire a 100 per cent interest in exploration permit ATP 788P which contains the southerly extension of the highly prospective Undulla Nose coal seam gas (CSG) province in Queensland.
ATP 788P lies immediately to the south of the Kenya CSG field, and approximately 20 kilometres from the Talinga, Argyle and Berwyndale South fields.
Origin is acquiring the interest in ATP 788P from the Pangaea group of companies for a total consideration of $660 million to be funded from existing cash reserves. Origin expects to book Proved, Probable and Possible (3P) reserves of CSG of around 1,150 PJ in respect of this area at 30 June 2009, together with further contingent resources of approximately 500 PJ.
The acquisition metrics equate to approximately 57 cents per GJ of 3P reserves, reflecting the high quality of this acreage.
So MEL currently have 3P reserves of 1,538 PJ with a current market cap of 73 million. Dirt cheap just because they are in NSW? I have a feeling that after the rights issue is settled MEL could really take off.