Small cap miner Blue Energy Limited (ASX: BUL) has been labelled as "gassed up and ready to go" by advisory firm Bell Potter after the broker placed a speculative buy rating on the $167 million market cap company.
Blue Energy shares were up 3.45% to 15c per share today, with Bell Potters price target of 29c per share still seemingly a long way off, but the broker says it sees the company as capable of addressing the looming gas shortage on the East Coast of Australia.
According to Bell Potter, Blue Energy has a clear path to monetising its large gas reserve and resource base with a "very attractive" combination of highly-experienced gas industry executives, a substantial inventory and contingent resources in highly-prospective emerging basins.
A gas shortage on the East Coast has been predicted for some time – driven by increases in demand while supply from traditionally major sources like the Gippsland Basin continues to decline.
At the big end of town BHP Billiton Limited (ASX: BHP) stocks are flying at a 52-week high as commodity prices boom across the board with Rio Tinto Limited (ASX: RIO) also easily at a 5-year high as investors favour miners for their blue chip fix while the Banking Royal Commission rages on.
