   |
|||
Everything is Worth SomethingBob Moriarty Many years ago I lived in Pennsylvania. I used to enjoy going to auctions because often they would be selling the contents of old farms where you could buy antiques up to 150 years old. I had a firm belief that everything was worth something. On occasion I would buy things that my wife considered perfectly daft but inevitably I would turn about and sell the item at a good profit. Everything is worth something. I firmly believe that. Except CBM Asia because they keep announcing incredible news and the market doesn’t value them much more than a quart of lukewarm elephant snot. Gas in the ground should be worth something. In Texas or Alberta a thousand cubic feet of natural gas is often worth $1 to $2. In Australia they do deals at $.50 to $2 an MMcf. In Indonesia, CBM Asia gets about $.03 after their latest news. That’s absurd and one day soon the market will get it. CBM Asia announced on January 31, 2013 that they have a 51-101 resource of 705 Bcf in the Best Estimate Category. CBM Asia has done an excellent job of a presentation where they estimate the value of an MMcf in the ground at $.40 to $.70 with gas at $6.00 to $8.00 MMcf retail. In comparison at Kutai West where the latest resource was generated, gas is going for $12 MMCF when liquefied and shipped. My opinion is that the latest results should show a market cap of $.80 an MMcf or $564 million dollars additional value just for the Kutai West portion of the entire property package. If you want to be ultra conservative, feel free to use $.40 an MMcf or $282 million in market cap. Either number shows the absurd value of the company at present. I fully realize the company has taken a long time to get to this position but I think the 51-101 resource from January 31 is explosive. And I’d like to remind readers that if you add this Best Estimate of 705 Bcf at Kutai West to the already announced 276 Bcf at South Sumatra, you have a total of 981 Bcf and that represents only 6.1 percent of their entire land package in Indonesia. The company is targeting 15 Tcf on their land package and I believe they will find it. With any luck one day someone may well valued gas in the ground in Asia. CBM Asia is an advertiser and we are biased. I own a lot of shares and have participated in a number of private placements. Do your own due diligence. CBM Asia ### Bob Moriarty 321gold Ltd |
