Blue Energy's review of its position has an upbeat note. It should. Wih cash of $20m, an off-take ageement with Stanwell Power (see below September) which supplies 30% of Queensland's energy and the sight of Shell sniffing around the great coal plains of central west Queensland it senses strong potential. Recent drilling is confirming the gas content expected which is lending early stage support to BUL's 10-30TCF estimate.

An immediate market hurdle is the clearance of shares held by the receiver of Opes Prime. Sad to say, one of the company's founder's used his BUL shares as collateral with that abysmally incompetent share financier and lost the lot as ANZ scrambled to retrieve its funds from Opes Prime.  The receiver has held on as the market crumbled; instead of considering our offer at 23-24c, he is now dealing with a market at 16-17c. But this is not Blue's problem. .

It owns 100% of its ground 10-11 leases covering 30,000 sq kilometres, the second largest acreage of all the coal seam stocks. This means BUL can slice and dice these leases several times and still retain possibly as much as $25% free carried. 

What would that be worth?  Conoco-Philips has set the base price  at $1.80 per unit, but with a return to normal markets and the amount of interest being shown by off-shore majors locked out of oil and gas resouces, we can expect prices considerably higher. It will be an interesting few months. Stanwell paid 40c without a quibble, obviously aware that the shares will be eventually worth far more than that.  We destest the expression "ten banger" as it conveys all of that puff chested grossnes than has undone America, but if ever there was a "ten banger" in the making, this is one.