Comments on: Australia’s Next Big Export Industry

By: Tony Phelan

Tony Phelan — Mon, 09 Feb 2009 03:20:20 +0000

I was an OSH bull until the gas price dropped.
Now I think all that noise about coal seam gas is just gas.

The enormous cost in building a plant to convert the gas to a liquid is the killer.

Such plants need a reasonable price for the LNG and secure customers.

Asia has reduced its LNG usage so for now dont buy.

when the price of LNG increases and there are firm contracts then buy.

By: Greg Atkinson

Greg Atkinson — Thu, 29 Jan 2009 08:52:17 +0000

Remembering of course small cap mining/resources stocks equal big time risk..plenty of tears and headache to be had investing in that area..it isn't all high returns and happy days. I would suggest if you intend to venture into that area you plug yourself into some research from people who know the sector well..and I mean "know". (i.e. like people with mining engineering etc degrees on their CV's) Plenty of mining operations/companies look great on paper but getting the stuff out of the ground in a cost effective manner is another thing. Personally I found it easier just to invest in big diversified miners, energy companies or mining related LIC.

By: Pete

Pete — Thu, 29 Jan 2009 03:59:47 +0000

(everyone, excuse my serial commenting...)

Robbie, IMO Santos looks promising because of its expansive reserves and Coal-seam prospects.

One very major drawback that makes me wary is that Santos has high debt. Perhaps a better play looks to be Oilsearch at this stage, who has lots of cash.

Kris/Dan suggest signing up to SmallCap Investor to learn of their growth stock suggestions.

*If I am wrong about any of this could someone please correct me, thankyou.

By: Robbie

Robbie — Thu, 29 Jan 2009 02:48:56 +0000

Is Santos a tip you recommend for investment in this area?