Bandanna Energy (BND.ASX) is another one of the coal seam methane developers in Queensland. The company is exploring in the Bowen & Gallilee Basins, and I understand it is preparing a pre-feasibility study, so they are at a pretty advanced stage.
I have not investigated this stock closely. I mention it only because I stumbled upon it. The chart suggests this is a good time to buy after the US-Asia sell-off. As you can see the current price is at the base trend price. I used to work for the chairman of this company. I do not have inside information. He just has a good track record, is a good manager, and is a major equity holder in this company. I also suggest the coal seam gas sector has a lot of promise. It should find support around current levels.
This is a moot point but - Gas will be a major source of energy in future for distributed power solutions. This is a long term outlook - but I suggest in future, you will each have a $5,000 power generating fuel cell in your home which will produce electricity, distilled drinking & hot water, air conditioning and refrigeration. I also believe that this will be a precursor to a solar concentrator which does the same thing in combination with a variant of the Stirling engine. The Stirling engine is old, under-appreciated technology. It was never developed because of its low electricity output and higher cost components.
Update - I have just had a read of a presentation by Jeremy Barlow about this company. They have a suite of coal projects as well which adds a lot of value to the company. Based on the basic information provided, the coal resources to the coast is decent quality coal, though the coal thickness is on the 'thin side'. They have thicker coal seams further out west which will incur higher transport costs. The reality I guess is that securing quality coal with the best logistics is getting harder. They have AMCI, a major coal trading company spending $25mil, and they have other projects.
----------------------------------------------Andrew Sheldon www.sheldonthinks.com
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