ESG 0.00% 86.5¢ eastern star gas limited

done the hard yards now for our payoff!!

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    Some will call the following an unashamed ramp .. and I will agree with them ... so reader beware!! After having toughed it out with ESG for the last 2 1/2 years while it has done the hard yards proving up its prospects its perhaps time to look forward to what must now surely be our due reward!

    Several years ago a number of us analysed ESG and concluded it would be the next QGC. By that we meant it was a couple of years behind but had big potential to be the next big thing in the CSG sector ... and that it would then become a prime takeover target. When STO took their stake in July we thought .. here we go! Some technical issues got in the road and that plus some determined and lengthy "control" has seen the ESG share price fall below their buy price. I believe the scene has now changed and as Yaqona has said .. its now GAME ON!

    Its been a tough road at times will it running more than once from 20 cents to around a dollar. And there have been plenty of "risks". But now that the "risks" are largely out of the way as Ballieu and Patersons have said ... what a great time to be buying ESG! Brokers will now more freely recommend ESG as a buy and institutions will show more interest.

    How big will be our reward? QGC gives some idea of the potential and the analogy is quite strong .. including the fact that Santos tried to rtake it over early .. and failed!!! QGC was bouncing around 80 cents when STO made an offer of around $1.30 and it quickly jumped to $1.40+ and the board rejected the offer. QGC went on to prove up reserves not disimilar to what we expect ESG to achieve in the first few months of next year, and was taken over by BG for $5.75 per share .. around $4.80 would be the ESG equivalent in terms of market capitalisation. Now QGC was in Qld (obviously!) and the sector was hot with a number of international majors moving taking positions .. so perhaps ESG will not attract the same premium ... yet! But IMHO if all goes well and we get a competitive bidding process for ESG > $3.00 is achievable. The reserves are there it would seem to justify a much higher price than it is being given credit for at present, and they are high quality and strategically located.

    Regarding reserves, I expect that with the Namoi seam being added and then eventually the Hoskisson seam as well the quantum will grow substantially .. both reserves and resources. Someone is going to want these reserves!

    I'm feeling much relieved and happy about ESG's future and our future prosperity!

    Cheers

    H

 
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