SHG sunshine gas limited

a positive view

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    From Sunshines website 'After drilling the Overston 1 well, Sunshine Gas commissioned an Independent Expert's Report to determine gas-in-place figures for the discovery using probability distributions and the preliminary quantitative log analysis. Based on this analysis of Overston 1, the mean probability of gas-in-place has been calculated to be 137 billion cubic feet (BCF).' From an earlier press release to MineBox 'Sunshine Gas directors are currently in negotiations for future sales to consumers and expect the value of gas, out of the ground, to the company to be in excess of $1 .9 million per BCF.' Do the calculations and Overston alone could be worth $260 million. Then you have the Samson deal and this from Samson's website 'Samson will be a premier exploration and production company within our peer group of Independents. We will double our value every six years through the combined efforts of our highly motivated workforce and our skilled utilization of business acumen, technology and knowledge. We will achieve this profitable growth through efficient exploitation of our existing asset base, acquisitions, and exploration and development drilling. We will be open to evaluating other energy related opportunities that will help us to achieve our value growth objectives.' I am looking forward to the next few weeks as drilling results come in and the seismic survey is completed. Given that Samson has already bought in and their intent on seeing a return I am quietly confident that we could see some very positive news in the near future.

    Cheers Chiller
 
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