ADE 0.00% 19.5¢ adelaide energy limited


  1. 3,028 Posts.
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    Yesterday Paterson Securities released a report on ADE to their clients based on yesterdays announcement.

    Sorry cannot copy and paste due to copyright etc, but in general gist the report based (ADE) yesterday as a SPECULATIVE BUY around 15 cents.

    A few comments of note in reading the report suggest that...

    At this stage it is not clear which individual formations are contributing to the flow and this will be the subject of ongoing studies. While it is difficult to imply value at this stage, a net resource of at least 1.8 to 3.6tcf, would show value in excess of ADE?s current market cap.

    Basically the report goes on to suggest...Lack of hard data has made resource estimates difficult with BPT making indicative estimates of up to 80tcf of gas in place across PEL 218 alone.

    Furthermore in their eyes, a longer term view is needed, with current gas prices too low to facilitate immediate large scale development ? Patersons have suggested a required gas price of +$5/GJ.

    Finally the analyst goes on to suggest that it is difficult to imply value at this stage.

    I think Pattos are being ultra conservative or simply don't understand the full weight of what ADE have.

    Any comments welcome.

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