Scottish Power sell Salt Cavern at Byley to E.on a German utility firm for 96m.
6BCF facility 96/6 = 16m per BCF.

Star Energy- Humbley Grove gas storage facility up and running in September this year.10BCF facility.

Humbley Grove worth 10x16m=160m or 210p per share. Star also has E&P assets worth 90p a share 210p+90p = 3.00.
Debt of 35p a share =265p.

On top of this Star has a further 80 BCF seeking planning in UK.This could add another 1.3 Billion to the company value.Current Market Cap 180M !

No surprise Petronas took a 20% stake at 2.00 recently.

One to watch.

willyk - have you bought or are you still looking ?

I have a few hundred shares in this lot and your comments above are very comforting !

Bought 20,000 at 210p Any obstruction from local planning for the sites I think the government will overule, given the dwindling stocks in the North Sea.
Hope this helps.
Will

STAR keeps on rising, at 362.5p now.

Have kept the faith in this one and are sitting on a nice profit. Anybody got any views on the future direction of the share price in Star Energy ? They seem to be carving a valuable niche business on the back of the volitile gas market.

>> hobbst

I would say that the future trend of the share price is up - on the basis that that is the current direction it is going!

rgrds
gk

Market cap is 255m which makes the SP look pricey if the planning permission is refused on its other proposed gas reserviors. If it gets the planning permisision then with the well publicised gas supply problems it could well be a racy share to be in.

Ooops meant 3.265p in the posting above - guess the fact that Petronas (who are Malaysian I think) have built a substantial stake in Star must give some support to the share price. As always is it so difficult to judge a fair value on a company that is building for the future.