Mate recommended I take a look at this gas stock. Essentially, looks as though they have CSG reserves in Northern NSW of 2500-5000 PJ or 2500,000,000 5000,000,000 GJ, over three fully owned tenements spanning over 1,000,000 acres. Only 10% tested so far. After an 18 month review, the NSW government has come out in support of CSG and has renewed the exploratory licenses. The current price of gas is $3/GJ (which is expected to go up to $6-12/GJ). So at a conservative approach, they have 2500,000,000 x $3 = $7.5 billion. There market cap at today's price is $88mil. If they can produce any amounts of gas, this stock is gonna rise quick. If they can get it to produce good amounts of gas, potential is endless.. By mid 2013, they are aiming to have drilled three lateral cash wells to begin testing flow rates. Anyone had much to do with this stock?
I have also been recommended this stock by a mate in the know - very close to the company. The potential is there, but the risk is political. Not sure where you live, but up here in Nth NSW the turtling-feral-hippies have a lot of political clout on a local scale... and they will fight it all the way. I haven't bought in yet, but am watching closely and can see the potential.
Yeah, have seen the banners on my sporadic trips to Nimbin I get the impression they're losing the battle (the turtling-feral hippies), but its enough to stay my hand, at least from a big buy in. Not my mate however...
