The company listed on April 7 after the IPO raised $37.5 million, issuing 30,000,000 shares at $1.25, with the remaining 50,000,000 shares subject to escrow arrangements.

However, a week after the float a Macquarie Equities report valued CH4, at between 53 cents and 73c per share. The stock was subsequently sold down to $1.03 and has since slid further before stabilising at 98 cents.

The bank was quick to say this was a base case valuation and not the sum total of the report, which rated the stock a short and long term 'market outperform'. The report said CH4 management can add further value through the contracting of additional loads in the Townsville market.

Naturally there has been a round of uproar from shareholders, and some embarrassment at Macquarie, which still holds around 50% of the company through subsidiaries, Bond St Investments and Macquarie Investment Trust III.

Despite the controversy, construction at the company’s Moranbah Gas Project (MGP) continues on time and on budget for delivery of commissioning gas in August 2004 and sales (or contract) gas in February 2005 at a capital cost of $61.5 million dollars (CH4 share $30.75 million).

The Project Development Plan for gas delivery in 2005 (a condition of the Enertrade Gas Sales Agreement) was approved by Independent Experts and by the end of March, the project was approximately 40% complete.

Eight new wells of 26 planned have now been drilled, in addition to the existing six wells used in pilot testing. In addition to these fully prepared wells, an additional 13 vertical and 15 lateral holes have been completed.

Purchasing of all major items has been completed; compressors arrived from Canada in February and arrived on site near quarter end. Delivery of other major items is in hand, with the only delay being the delivery of the next six wellhead spools.

CH4 has also progressed exploration on the neighbouring Moranbah South and Peak Downs areas with the company’s own preliminary estimates indicating 2P reserves of up to 107petajoules.