Future bright for Metgasco
A RESOURCES analyst says coal seam gas company Metgasco remains in a strong position despite dramatic falls in its share value.
Metgasco's shares are currently priced at 13.5 cents each, less than half the 28 cents they were worth as recently as September.
ABC Radio has reported the company, which was trading at $1.50 per share in 2008, has a price target of 62 cents this year.
Resources analyst Adrian Prendergast told the ABC Metgasco remained in a strong position.
"They've got very rich gas reserves," Mr Prendergast told the ABC.
"Obviously the fundamentals of the East Coast energy market are very supportive of that kind of investment.
"Certainly our research has been that the stock is very attactive value.
"As early as 2015, NSW in particular may feel some pressure on their energy resources and that's certainly further supportive of companies like Metgasco who are trying to develop gas reserves."