MEL Metgasco (gas)

[boxing_beaver]

interesting stock this one, yet another that might be rising on the CSG train...

just had a quick look through the last couple ASX releases.... 2P & 3P reserves seem fairly sizable. So whats holding back this stock?

- Not in the "hot" Queensland (i.e. Bowen/Surat) region?
- doubt over achievable commercial flow rates?

[mark100]

I took a punt last year at prices over $1 when CSG was hot but had to evacuate when markets crumbled. Have recently bought again at prices in low 40's. Will sell if it breaks below 40.

While the 2P and 3P reserves are large I also think it being held back by NSW location and low flow rates to date.

That said, at least MEL have got to the point of testing flow rates. Many of the CSG juniors are pushing reserves numbers before they have even drilled a hole, certified reserves and tested flow rates! And some of these companies have higher market caps than MEL.

The NSW based ESG keeps getting touted as a takeover target. I personally think MEL might be the overlooked play here. A bigger player might think they can come in and use their expereience to try some different drilling techniques etc and boost the flows.

For less than $100m MEL gives a lot of acreage and a lot of 2P and 3P (around 1500PJ of 3P and 240PJ of 2P from memory)

[Footsie]

Stock is in a nice uptrend.

Picked some up the other week at 42c.
and also landed some extra ones at 40c via the SPP.

Looking for 60c as a short term target.


I did own them briefly at 1.30 last year.... that seems like eons ago.

MGMT seem to be doing the right things and i'd heard the reason they fell so much in the first place was due to a hedge fund that blew up and had to dump stock back in October

CSG consolidation also working in their favour.

[Footsie]

im really liking this stock at the current price

very low risk technical entry as stock right on support.

Could buy at 44 with a stop 10% lower at 40

[shasta]

im really liking this stock at the current price

very low risk technical entry as stock right on support.

Could buy at 44 with a stop 10% lower at 40

This presentation should see it lift off its support levels...

http://www.stocknessmonster.com/news...E=ASX&N=546821

Even though MEL is in NSW, still has all the promise of it's Qld peers

[Footsie]

anyone else join me on this trade...

Looking good at present.
Talk y'day in AFR of a tie up with BP

up on good volume today

[foodee]

Footsie



Cheers

[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.

[mark100]

Yeah agree Footsie. The TA and FA both stack up for MEL right now. I am holding for the moment

[Corporate]

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.

Nice summary Footsie. Can you explain how MEL intend to make a return for shareholders? Are they proving gas for sale? Or are they proving reserves to try and attract a takeover?