MEL Metgasco (gas)

[Footsie]

Corp

have a listen to the latest preso on BRR.com.au or their website.
worth viewing the website anyway. One of the best and most comprehensive

"supplying gas customers in SE Queensland where we have MOUs in place to supply approximately 150 Petajoules of gas over the next 20 years. We are developing pipeline infrastructure to deliver this gas to customers."


They are selling conventional and proving up CSG.

ultimately MEL will get taken out. But the mgmt appear quite sharp and in the meantime they have a plan to sell gas.


They already have a contract with BP if reserves reach 360 2p. i'd say that BP might just gobble them up.

[Footsie]

to add to this....

In my opinion..... assuming the "dash for gas" continues

its just a matter of time before a) the price goes up to $1.00
or b) someone does a PES and pays the true value for MEL i.e $5.00+

[Footsie]

here are the numbers to back up what im saying

ignore EPG as they are based in Europe.....

shows the compelling value

[mark100]

There was some speculation in the AFR a couple of weeks ago that a 'deal' with BP was being worked on. But no updates since

[Huang Chung]

BP have an oil refinery at Bulwer Island on the Brisbane River. CSG is already piped to the refinery. Maybe BP might want to use their own gas in future, or at least supplement existing sources.

http://www.originenergy.com.au/news/...ia-releases/13

I wonder if BP have room to set up and LNG train or two?

[Huang Chung]

BP have an oil refinery at Bulwer Island on the Brisbane River. CSG is already piped to the refinery. Maybe BP might want to use their own gas in future, or at least supplement existing sources.

http://www.originenergy.com.au/news/...ia-releases/13

I wonder if BP have room to set up and LNG train or two?

Ferreting around a bit more this morning. Didn't realise my thoughts of Metgasco pumping Clarence Moreton gas to Bulwer Island were 2 years too late

http://news.smh.com.au/business/metg...1203-1ehx.html

[Corporate]

here are the numbers to back up what im saying

ignore EPG as they are based in Europe.....

shows the compelling value

Footsie - thanks you for the informative posts. I will take a closer look.

I assume the lower valuation compared to it's pairs is due to the location of there permits? NSW instead of QLD?

[Financially dependant]

Footsie - thanks you for the informative posts. I will take a closer look.

I assume the lower valuation compared to it's pairs is due to the location of there permits? NSW instead of QLD?

MEL has been on my watch list for some time also....There fundimentals are excellent and SP is now looking good BUT the prize is LNG, domestic gas prices have been low for years and as more gets proven up the longer the prices stay low. A gas field needs access to a LNG export facility (or possible facility) before the gas has any real value.

MEL will stay on my watch list but IMHO AOE might be a better bet.

[Footsie]

Phaedrus

Would appreciate your analysis.
The rising wedge seems to be taking an eternity and it broke last week (down) only to rally back into the wedge the following day.

I've built a very large position in this stock and would like an impartial view.
(i'm following the Charlie Munger strategy for a while.... ie bet big when you have the odds and small when you are 100% sure on the trade)

Thanks

[Phaedrus]

I can't really add much value to your chart at the top of this page, Footsie. I can do the volume bars in colour for you - this more clearly illustrates your statement "notice how the up days are combined with big volume...." This is of course Bullish. In Ascending Triangles, the volume is supposed to be heavier at the start of the formation than near the end.
I added a few other indicators. Cut from MetaStock :- "Qstick provides a way to quantify candlesticks. The distance between the open and close prices lies at the heart of candlestick charting. For those unfamiliar with candlestick charting, the body of a candlestick is black if today's close is less than the open; it is white if today's close is greater than the open. A majority of white candlesticks over a specified range is considered bullish. Whereas a majority of black candlesticks over a specified range is considered bearish. The Qstick indicator is simply a moving average of the difference between open and close prices." The rule is "Buy when the Qstick indicator is at an extremely low level and turning up."
See how Momentum began to rise and triggered a Buy signal well ahead of the trendline break.
See how the Trendline break buy signal was simultaneously confirmed by the clearest OBV buy signal that you could ever hope for.
Notice the "Double Top". This stock has many good examples of this Bearish formation.
Footsie, it seems to me that you need a lecture on patience, rather than TA! It would be a bit hypocritical of me to deliver it though because it's not really one of my virtues.
The FA and the TA both look good. What more could you ask for? Unlax!