Pan Pacific Petroleum Nl (PPP)

[Nitaa]

Technically aware traders that sold PPP on the recent Bearish divergence at 79 cents would have bought back in at 64 cents on the basis of RSI and RVI buy signals as marked by green arrows.

For more conservative investors in this stock, PPP remains a "Hold" for the following reasons :-
(1) Longterm confirmed trendline is unbroken.
(2) Slow Stochastic Oscillator has not signalled a Sell.
(3) OBV trendline is unbroken.
(4) Trailing Stop has not been hit.

PPP is therefore a Buy or a Hold but not a Sell at this time.

Hi Phaedrus. Do you want to reconsider your position?

[Nitaa]

I'm not the smartest member on this site, or even the second smartest for that matter. I am not a holder other than the fact I do hold some NZO.

In the way I read this announcment, I dont see anywhere to suggest that PPP will lose any of their share of the JV.

I do see that PPP has been told that PetroVietnam Exploration Production Corporation Ltd (PVEP) may aquire from Premiers stake. Is my thinking wrong?

As well the paragraph also includes the word "part" which would lead me to believe if PPP were effected, then option 2 would be the most likely.This is why I would like some clarification from PPP. Now even if PPP were not to be affected by this (highly unlikely) they still need approval prom the Vietnam Government.

I am sure we can expect some clarification today.

[777]

Announcements to the stock exchange should able to be understood by everyone. Analysis of what they mean should be unnecessary. When will the respective exchanges sort this?

[Xerof]

Agree 777, this situation is disgusting - people are totally confused seemingly

disc: don't hold PPP

[neopoleII]

to me it reads .....
PetroVietnam wants it 15% rights, what the rest of the parties do is their business.
so pppv might still get its 15% from the other parties to spread out the costs.
so this is where the confusion comes from, the other parties need to sort out if they want pppv to help out in the costings or not.

[neopoleII]

also, while no one knows if we're in or out or half in etc,
we should have a trading halt until the market is informed correctly.
ppp pulled trading halts for less important announcments..........

[macduffy]

I havn't seen anything yet to change my opinion that all holders' interests will abate and that PPP will end up with 12.75%.

As for Vietnam govt approval, this is a normal requirement. Any move to call a trading halt for this reason wiould send completely the wrong message and might be interpreted as trying to hold a gun to V G's head. We just have to be patient - or throw in our hands!

:cool:

[Phaedrus]

Hi Phaedrus. Do you want to reconsider your position?I am happy to update my comments for you, Nita.

"Technically aware traders that sold PPP on the recent Bearish divergence at 79 cents would have bought back in at 64 cents on the basis of RSI and RVI buy signals as marked by green arrows." Such traders would have sold when PPP broke its trendline and broke below its previous support level of 60 cents, making this a losing trade for them.

"For more conservative investors in this stock, PPP remains a "Hold" for the following reasons :-
(1) Longterm confirmed trendline is unbroken. Now broken.
(2) Slow Stochastic Oscillator has not signalled a Sell. Still true.
(3) OBV trendline is unbroken. Still true.
(4) Trailing Stop has not been hit." Still true
For conservative longterm investors, PPP still remains a "Hold". (It is not good practice to act on the basis of a single signal in isolation)..

"PPP is therefore a Buy (for traders) or a Hold (for investors) but not a Sell at this time". PPP is now a Sell (for traders) or a Hold (for investors) but not a Buy at this time. Very nervous longterm investors might perhaps want to sell on the basis of the isolated (unconfirmed) trendline break.

[Pipeline]

Guys

If I may add a bit, as an interested bystander (now) and someone with some background in this area.

PPP's deal was subject to pre-emption by PetroVietnam. No comment has ever been made that this pre-emption has been cleared. This has always been a concern.

If we look at the AWE deal, it was also subject to the same pre-emption terms, but in their quarterly report in March, it was stated that this was cleared.

AWE's deal was for 22.3% while PPP's was 15%. Different blocks, but same concept.

The confusion arises as PV also have a 15% back-in right, which is triggered when a development concept is tabled. This has just been triggered for the Santos/Premier Block. I understand that this is typical in Vietnam, but it is not 100% clear if it applies to both the AWE and PPP blocks, but I strongly suspect it does.

The confusion here is that the PV pre-empt and back-in are both for 15%.

My view is that PV have pre-empted the deal and as such PPP have no further interest in the block. They will get their money back, with minor or no uplift. The 15% back-in rights (across all the JV) still exists.

This is a bad outcome and was obtained because PPP did not get clearance form PV before they committed the money and drilled the well. Compare this with AWE announcements.

I have recently sold a substantial holding in PPP as it just looked unusual. The remainder was dumped yesterday. I no longer own the shares.

This is not advise. Do you own research.

Pipe

[Dr_Who]

I cant believe investors pushed PPP sp up to 75 cents based on a possible drill in Vietnam. I sold out my shares awhile back and made comments on ST the detriment of PPP venturing off the bleeding path.

[Nitaa]

I contacted PPP today and at best i would have to describe the person who answered the phone as standoffish. What i was after is a simple clarification on yesterdays announcement.

I strongly recomend everyone to call PPP on + 61 2 9957 2177. At least to ask for clarification or to speak to Tom Prudence as outlined in yesterdays announcement.

[Xerof]

Pipeline,

a man of few contributions, but that is a very good summation. Thanks

In hindsight, perhaps we saw the smart money selling around 80 soon after the positive announcement re the drill results, i.e. those with more industry savvy realised that PV would back-in. Possibly explains that big dump that came out of the blue a while ago.

This imprudence might mean no Prudence.......

disc: feeling 15% of the pain via NZO

[Nitaa]

Pipeline. I strongly suspect you are on the money.

PPP approach to the farm in was a sort of opportunistic event that in reality was always going to be a lose lose situation. Im saying that with the be3nefit of hindsight but also know its unrealistic to assume that PPP could simply walk in a few weeks before the drill and get a free ride so to speak.

Like anything in life its the pre planning, planting the seeds, setting the foundations first etc that is important. Clearly this wasnt done.

Next....

[Nitaa]

I have taken the liberty in talking to other bigger shareholders of PPP. The general feedback is that PPP's announcement yesterday and other past announcements is rather vague and ambigious.

To simplify, it appears that PV has the right to take all of PPP's 15 or part of it.

Anyone had any luck in getting a response from PPP today?

[oldowl]

Send PPP an email and asked for an explanation.
Answer received:
Dear Sir,
Thank you for your email which I have forwarded to the appropriate person.

Regards
Marianna

OO

[Paint it Black]

Thanks also Pipeline for your comments. You are saying the preemptive rights are different from the back in rights even though they are both 15%. Going back to post 1325 from Boysey I only see a condition in the original agreement for the waiver of preemptive rights but nothing about the back in rights. Surely both should have been declared here if in fact they are separate. Why do you believe they are separate - it seems quite a coincidence they both are 15%?

[troyvdh]

..you traders out there must be having a ball.....gee 12 % in two days.....cool man....

[Sehnsucht888]

Bit of Buy depth on the NZX now... Haven't seen that for a while.
When we were mid 60s and up, there was so little, that it seemed if anyone needed to sell a chunk quickly, the price would be hit hard, and that news triggered a few of those..

Good to see some support firming again. Oil prices going up again may have helped, and the general positive feeling with the DOW over 10K, and perhaps being oversold... That other farmin could be worth some $..

Wish the story with Vietnam could be clarified though..

[Nitaa]

I am a bit suprised by the lack of discussion with this thread. As a shareholder of PPP i made all reasonable endevours to get a straight answer from the company. I have phoned and emailed but to no avail. Maybe i am just 1 of a small minority who cares about what happens to my investments.

[troyvdh]

Nita...I too recieved minimal response.

[Sehnsucht888]

Any thoughts as to whether NZO could get an answer - they should have a bit of sway being a major shareholder... Since they seem to be ignoring everyone else.

[Nitaa]

I have phoned again and told i will get a response to my email later this afternoon. I will post the response when i get it. I also phoned Veitnam but due to a lack of my global language capabilities I was unable to get any further than the receptionist.

[oldowl]

I received their email 2 minutes ago:

Clear now??????????????????????????????

Dear Shareholder,

Your email refers.

PPP is a publicly listed entity on the ASX and NZX and is therefore required to comply with the relevant continuous disclosure obligations and as such is required to immediately advise the market of any information that the Company receives which a reasonable person would expect to have a material effect on the price or value of the Company's shares. PPP has already reported as much information as is available with respect to PPP's investment in Vietnam and as soon as PPP becomes aware of any additional information which it is required to disclose it will release this information to the market.

Regards
Marianna

Could it be that they , just as us, don't understand what has happened or is going to happen?

OO

[Paint it Black]

I have also sent an email to them trying clear up my theory the preemptive rights are the same as the back in rights.

[Paint it Black]

I also just got the same standard response as oldowl. At least it came back quickly - probably on autoreply.

[Nitaa]

Hi Marianna,

Kindly advise what is the effect on PPP’s announcement yesterday. Very ambiguous and vague much like the rest of the announcements for this farm in agreement.

If I can’t get an answer straight away when can we expect some comment from Tom?


Their Response
Dear Mr ......

Your email refers.

PPP is a publicly listed entity on the ASX and NZX and is therefore required to comply with the relevant continuous disclosure obligations and as such is required to immediately advise the market of any information that the Company receives which a reasonable person would expect to have a material effect on the price or value of the Company’s shares. PPP has already reported as much information as is available with respect to PPP’s investment in Vietnam and as soon as PPP becomes aware of any additional information which it is required to disclose it will release this information to the market.

Regards
Marianna

My response to their response

Dear Marianna,

With all due respect, I can only come to one conclusion and that is PPP itself do not know what is going on. If Tom and the management don’t know then how do you expect us shareholders to know.

I see this as a poor reflection on the company and its management. I certainly hope that there is a better response in the not too distant future.

Best regards,

.......

[777]

Send them a link to this thread. They may learn something.

[digger]

Hi Marianna,

Kindly advise what is the effect on PPP’s announcement yesterday. Very ambiguous and vague much like the rest of the announcements for this farm in agreement.

If I can’t get an answer straight away when can we expect some comment from Tom?


Their Response
Dear Mr ......

Your email refers.

PPP is a publicly listed entity on the ASX and NZX and is therefore required to comply with the relevant continuous disclosure obligations and as such is required to immediately advise the market of any information that the Company receives which a reasonable person would expect to have a material effect on the price or value of the Company’s shares. PPP has already reported as much information as is available with respect to PPP’s investment in Vietnam and as soon as PPP becomes aware of any additional information which it is required to disclose it will release this information to the market.

Regards
Marianna

My response to their response

Dear Marianna,

With all due respect, I can only come to one conclusion and that is PPP itself do not know what is going on. If Tom and the management don’t know then how do you expect us shareholders to know.

I see this as a poor reflection on the company and its management. I certainly hope that there is a better response in the not too distant future.

Best regards,

.......

Thanks Nita,
Your responce is as i expected and probably explains why i have not bothered. PPPV is an added extra a bit like the belief in the gold and rainbow thing. Would hope no more than 2 cents are added to the SP from Vietnam. East timor sounds a lot better arrangement. Why in hell anyone would sign up to drilling someone else well is beyond me.In fact the info as we have it makes you wonder about the way some people think. Keep this up and we better start some changes at the top. AGM coming up on 14 NOVember.

[Nitaa]

Your welcome Digger. At least it should make it an interesting AGM this year.

[macduffy]

Your welcome Digger. At least it should make it an interesting AGM this year.

Interesting, yes, but directors' 35% odd shareholding will take a bit of rolling!

;)

[Sehnsucht888]

Interesting, yes, but directors' 35% odd shareholding will take a bit of rolling!

;)

The other thing to consider, is that based on 35% of the company, the directors compined holdings have decreased by:
NZD$18.5 million - if on the NZ register. (65c to 56c) ($24.7million before yesterdays 3c increase).
AUD$16.5 million - if on the AU register. (52c to 44c)

So, given they have so much to gain/lose in their "adventures", either they couldn't see the real story being blinded by $ signs in front of them, or there is more yet to play out on this...

[digger]

The other thing to consider, is that based on 35% of the company, the directors compined holdings have decreased by:
NZD$18.5 million - if on the NZ register. (65c to 56c) ($24.7million before yesterdays 3c increase).
AUD$16.5 million - if on the AU register. (52c to 44c)

So, given they have so much to gain/lose in their "adventures", either they couldn't see the real story being blinded by $ signs in front of them, or there is more yet to play out on this...

Yes that is a good point Sehnsucht,and lets hope it turns out that way,otherwise the directors are edgeing on madness.Probably lack experience in dealing with asian,who really do not have a concept of fairplay as we know it.

[Misc]

The Directors were simply too slow to pounce on the Premier farm-in . imo.
Whats the bet they dithered over it for months , when they could have had the pre-emptive rights sorted pre-drill (as is industry norm ,, aka Farm-in 101).

PVEP are the most aggressive NOC on the planet , not surprised at all by this.

M

[Nitaa]

The Directors were simply too slow to pounce on the Premier farm-in . imo.
Whats the bet they dithered over it for months , when they could have had the pre-emptive rights sorted pre-drill (as is industry norm ,, aka Farm-in 101).

PVEP are the most aggressive NOC on the planet , not surprised at all by this.

MFrom what i heard, the Farm in agreement was being "Out There" around for a few months prior to PPP picking it up. Basically none of the other oilers did anything about it so PPP picked it up on a last minute decision.

I will take a wild stab and say that PPP will end up with a 5% stake in it. If they lose the lot then it will only make other foreign oilers to be more stand-off-ish about participating in any further exploration ventures with Asain or more specifically Veitnam Oil Co's.

[Pipeline]

Nita

Word on the streets up here is that PPP will hold only 5% post the pre-empt. I suspect that the reasons for the partial pre-empt is exactly as you state it. Foreign investment.

PV will still retain the back-in right for a further 15% across all JV as per the existing legislation.

A bad outcome for PPP borad and management, as this was highlighted by all as a risk which was not closed out.

Pipe

[boysy]

i think the current sp has factored in the worst case dont we think ? 5% is still better than a kick in the eye and with upcoming drills even 5 % could be lucrative. I have written off vietnam and i think the sp speaks volumes so any good news would be welcome.

[the machine]

i think the current sp has factored in the worst case dont we think ? 5% is still better than a kick in the eye and with upcoming drills even 5 % could be lucrative. I have written off vietnam and i think the sp speaks volumes so any good news would be welcome.

if ppp left with 5% then still a lot of oil and sp might regain 4-5 cents which would equate to approx double the percentage retained in the permit

could see a bit of a bounce next week

M

[Pipeline]

i think the current sp has factored in the worst case dont we think ? 5% is still better than a kick in the eye and with upcoming drills even 5 % could be lucrative. I have written off vietnam and i think the sp speaks volumes so any good news would be welcome.
Boysy

I admire your optimism.

It would be a sad day when losing 10% of an oil discovery through poor management can be described as good news.

The stock was 30 ish cents when the Vietnamese discovery was made. Markets and oil prices are higher, so I doubt it will plumb to these depths again, but a management (and board) discount may also be appropriate.

DYOR.

Pipe

[Xerof]

I've a mind to recommend the Board be posted on Jim Cramer's Wall of Shame :(:(

[macduffy]

The caveats on the Vietnam interest were announced at the time. Anyone buying in at that stage or later should have been well aware of the situation.

Just one of the risks in investing in O & G stocks.

:cool:

[spike]

i think the current sp has factored in the worst case dont we think ? 5% is still better than a kick in the eye and with upcoming drills even 5 % could be lucrative. I have written off vietnam and i think the sp speaks volumes so any good news would be welcome.

As much as it would be nice to have I have a feeling that 15% of a successful drill may have been an option on paper but was never going to happen. A 5% + holding and options in to future drills could still be nice to have an may have been the expect out come. A 0% holding I would be interested on how they can explain at the AGM

[boysy]

could indeed be quite an interesting AGM. I wonder if NZO are running there fingers over the calculator once again looking at ppp. Any way plenty of action over the next few months with the drillbit and hopefully a positive outcome from vietnam.

[Nitaa]

could indeed be quite an interesting AGM. I wonder if NZO are running there fingers over the calculator once again looking at ppp. Any way plenty of action over the next few months with the drillbit and hopefully a positive outcome from vietnam.Still think its too high for NZO and of course too many unknowns at this point in time. The other problem is the blocking stake that AT has. Its a bit of a stalemate at the moment.

[the machine]

sold my last 20,000 ppp today and bought 5,800 nzo with them.

had owned ppp for almost 30 years and now don't own any.

at least through nzo I own a few ppp indirectly

M

[Paint it Black]

It's very reassuring to see Messrs Pitt and Tomlinson have just acquired 200,000 shares each at A44.5c. Maybe some more news on Vietnam is coming over the weekend

[troyvdh]

where did you get that from.....

[Paint it Black]

Just posted through Direct Broking - sorry I'm not sure how to cut and paste it into here. It was announced at 15.37 today on the ASX.

[shasta]

Just posted through Direct Broking - sorry I'm not sure how to cut and paste it into here. It was announced at 15.37 today on the ASX.

Here they are

http://www.stocknessmonster.com/news-item?S=PPP&E=ASX&N=569947

http://www.stocknessmonster.com/news-item?S=PPP&E=ASX&N=569946

[macduffy]

It's very reassuring to see Messrs Pitt and Tomlinson have just acquired 200,000 shares each at A44.5c. Maybe some more news on Vietnam is coming over the weekend

I don't think it's "each". They both have an interest in the same holding?

[digger]

It's very reassuring to see Messrs Pitt and Tomlinson have just acquired 200,000 shares each at A44.5c. Maybe some more news on Vietnam is coming over the weekend

This has been my point all alone. The directors are the only ones that have any real idea what is happening with PPPV and they own 37% of the company and are slowly buying.I still have 2 million after giving away 100000 each to my offsprings and would sell the lot if it were not for the director large holding in this company.And lets remember it is spread over most of the directors which by any mesure is a very good sign. The idea of drilling someone else's well makes me uneasy but in this case they just might suprise.
From Vietnam point of view they will internationally screw themselves if PPP is left with nothing,which i believe has been the director trumpt card all along.

[digger]

And by the way Paint it Black nothing will be coming shortly as the directors have just bought on 7 Oct so they must not know anything on that date or coming up which all of us do not know. I would say another month but hopefully before the next drill which i still believe is this year.

[Paint it Black]

And by the way Paint it Black nothing will be coming shortly as the directors have just bought on 7 Oct so they must not know anything on that date or coming up which all of us do not know. I would say another month but hopefully before the next drill which i still believe is this year.

It's hard not to respond 'yeah right'! At a minimum though it's hard to see them wanting to extend their own exposure without being comfortable Vietnam is not a dead duck.

[Nitaa]

This has been my point all alone. The directors are the only ones that have any real idea what is happening with PPPV and they own 37% of the company and are slowly buying.I still have 2 million after giving away 100000 each to my offsprings and would sell the lot if it were not for the director large holding in this company.And lets remember it is spread over most of the directors which by any mesure is a very good sign. The idea of drilling someone else's well makes me uneasy but in this case they just might suprise.
From Vietnam point of view they will internationally screw themselves if PPP is left with nothing,which i believe has been the director trumpt card all along.Directors own 37%? You might want to clarify your point here Digger.

NZO hold around 14% through Stewart Petroleum. Tattersfield Securities hold around 12% (perfect blocking stake). The point made where the directors are accumulating a positive sign in one sense but in comparison to their holdings its a very small amoount of increase. If you see them jumping in buying by the millions then its worth to take more notice. Still, have to say that it is more positive than negative.

[h2so4]

"The directors are buying" is a quote that appears in almost every thread on Sharetrader. I read nothing into this. The directors may see it as a way of protecting their interest. What if the directors were selling? What is more important is the value of the company. I no longer hold PPP for two reasons. One the sp moved above my estimated value and two I am now unsure how to put a new value on the company. It was easy when they had $120m in the bank and no other balls in the air.

[upside_umop]

h2so4, in the U.S. it is a proven strategy to buy when the directors buy and short when the directors sell. Cant remember which study it was...but there is a fund dedicated to following this strategy in the U.S. I have heard, anybody know which one it is?

Why would it outperform the general market?

Directors know a hell of a lot more than you or I, and to be honest are generally pretty good business wise (probably more-so than most of us here) therefore, if they're buying (in good quantities) then there is a better than average chance that it is a good buy. The opposite is true if they're selling.

Re PPP. It could become attractive again before this appraisal drilling in and around Tui. At least they're starting to become quite active...lets hope Mr Prudence doesnt blow the big cash pile that once was.

That Vietnam situation was a lose-lose situation for PPP. Crazy how it happened?

[rainey]

Has it been clarified yet whether the Veitnam Govt takes all of PPPs holding or gains its 15% on a pro rata basis

[bermuda]

Has it been clarified yet whether the Veitnam Govt takes all of PPPs holding or gains its 15% on a pro rata basis

A very good question Rainey. I would love to know the definitive answer to that one too.

Surely they couldn't have been backed out completely.

[rainey]

One would think that when they entered the origional agreement, they would at least know that they were going to end up with either 15% or 12%+ if the Vietnam Govt exercised their option

[Nitaa]

One would think that when they entered the origional agreement, they would at least know that they were going to end up with either 15% or 12%+ if the Vietnam Govt exercised their optionNo guarentee at all unless its in writing to the contary. However they (Petro Vietnam) clearly have the ability to exercise their right and end up with PPP's 15%

The only real way to understand the situation is to see what the common practise is in the past. Do they leave 5% or 10% behind for PPP or do they leave nothing. If they constantly leave nothing then no company in their right mind would buy into a farm in agreement on that basis. Hence my view is that PPP will end up with say 5% stake in it.

[Sehnsucht888]

Well, thats clearer and more positive, still a bit uncertain though....

"PPPV has now been advised that PetroVietnam Exploration Production
Corporation Ltd (PVEP) intends to exercise the pre-emptive right on behalf of
PetroVietnam, and is considering the acquisition of part of the 15%
Participating Interest the subject of the PPPV farmin from Premier. A further
update will be provided when the details of the PVEP position are confirmed. "

https://www.directbroking.co.nz/DirectTrade/dynamic/announcement.aspx?id=2361457

[stone small green]

at least they got no debt.

still a positive cash flow.

so..umm.. I'm positive.

[Paint it Black]

Well, thats clearer and more positive, still a bit uncertain though....

"PPPV has now been advised that PetroVietnam Exploration Production
Corporation Ltd (PVEP) intends to exercise the pre-emptive right on behalf of
PetroVietnam, and is considering the acquisition of part of the 15%
Participating Interest the subject of the PPPV farmin from Premier. A further
update will be provided when the details of the PVEP position are confirmed. "

https://www.directbroking.co.nz/DirectTrade/dynamic/announcement.aspx?id=2361457

The meaning of the word 'part' is still the big unknown but the fact it is taking time to resolve may indicate a compromise instead of taking the lot is being carefully considered by PVEP.

[Sehnsucht888]

tick tock, tick tock...
How long will we have to wait for an answer.. Will PPP be trying to put pressure on to know before the AGM next week? I'd expect the atmosphere to be quite negative if there is no update by then.

[boysy]

looks as though drilling will start soon in the timor sea the agm should be interesting

Oilex Ltd advises that on 11 November 2009, Woodside Energy Ltd released the “Songa Mercur” drilling
rig to Oilex and the vessel is now under tow from Dampier to the first well location in Oilex’s Timor Sea
contract area JPDA 06-103. The rig is contracted to drill two wells in JPDA 06-103 (with an option of one
additional well). Drilling is expected to start in late November 2009.

The “Songa Mercur” will be drilling the Loré and Lolotoe prospects in JPDA 06-103, targeting mean
prospective oil resources of 195 million barrels and 90 million barrels respectively (100% basis).

[Paint it Black]

looks as though drilling will start soon in the timor sea the agm should be interesting

Oilex Ltd advises that on 11 November 2009, Woodside Energy Ltd released the “Songa Mercur” drilling
rig to Oilex and the vessel is now under tow from Dampier to the first well location in Oilex’s Timor Sea
contract area JPDA 06-103. The rig is contracted to drill two wells in JPDA 06-103 (with an option of one
additional well). Drilling is expected to start in late November 2009.

The “Songa Mercur” will be drilling the Loré and Lolotoe prospects in JPDA 06-103, targeting mean
prospective oil resources of 195 million barrels and 90 million barrels respectively (100% basis).

The AGM is coming up this Thursday afternoon with a small lift in the SP as it approaches. I wonder if the proposed APEC eight nation trade deal which includes Vietnam, Australia and NZ may help pursuade the Vietnamese Government to moderate their preemptive rights with their new mates?

[the machine]

The AGM is coming up this Thursday afternoon with a small lift in the SP as it approaches. I wonder if the proposed APEC eight nation trade deal which includes Vietnam, Australia and NZ may help pursuade the Vietnamese Government to moderate their preemptive rights with their new mates?

Although no longer hold directly I think it comes down to a choice of 2 answers - no and no


M

[soletrader]

Premier Oil were up 5.5% today, and a broker upgrade says there is 20% to go. Of course Premier have diverse O & G interests, but I am consious of people over here picking up on Vietnam.

If we can keep hold of some of our interest there, put together with Tui and speculative Timor Sea, I think we could be within sight of the serious price action we have been looking for.

A lot of if's in there I know.

[Sehnsucht888]

REL: 1256 HRS Pan Pacific Petroleum NL

GENERAL: PPP: Vietnam Block 07/03 Update

STOCK EXCHANGE ANNOUNCEMENT

19 November, 2009

Pan Pacific Petroleum NL
Vietnam Block 07/03 Update

PetroVietnam has authorized PetroVietnam Exploration Production Corporation
Ltd to exercise its pre-emptive right and to acquire a 10% participating
interest out of the 15% assignment proposed in the Premier Oil Vietnam South
B.V farmout of Block 07/03 to Pan Pacific Petroleum (Vietnam) Pty Ltd (PPPV),
a subsidiary of the Company.

Assignment of the remaining 5% to PPPV will be progressed, but remains
subject to formal PetroVietnam and Vietnamese Government approval.

[Sehnsucht888]

I guess that is good? Given that the earlier reaction seemed to be based on no involvement..

[boysy]

nothings in the bag quite yet they still have to jump a few hurdles before they get the 5%. Also no mention of reimbusment of costs this could be a big point that is brushed over will we get rightfully reimbursed ?

[Paint it Black]

nothings in the bag quite yet they still have to jump a few hurdles before they get the 5%. Also no mention of reimbusment of costs this could be a big point that is brushed over will we get rightfully reimbursed ?

But all in all far better than being left out in the cold especially as PetroVietnam would not be in it if they did not see a good upside in the field. A small foothold here can lead to bigger things in the future!

[manxman]

But all in all far better than being left out in the cold especially as PetroVietnam would not be in it if they did not see a good upside in the field. A small foothold here can lead to bigger things in the future!

Agreed. 5% of this could be bigger than 10% of TUI. And no risk of icebergs either. But there is still a long way to go before a production decision.

Lots of positive stories coming about oil exploration in the last week. The brokers will start to take notice in about two days. Drinks tonight, office watercooler talk on Monday. Say by next Tuesday they will know what to think, and the market may wake up.

[boysy]

very average new presentation out for the agm contain little new information other than tuis production for the year has been downgraded hopefully sh are giving it to them at the agm they have alot to front up to

[soletrader]

Snippet from Premier Oil News Alert 19.11.09.

* 3D acquired on Block 07/03 in Vietnam, rig due on location for second well, Ca Rong Vang, later this week, following on from successful Ca Rong Do discovery in June.

[digger]

very average new presentation out for the agm contain little new information other than tuis production for the year has been downgraded hopefully sh are giving it to them at the agm they have alot to front up to

But boysy did you notic the comment about Maitland.Only got a mention because it is their but nothing happening except what has been happening for the last 4 years.It is a bit like KUPE except that with KUPE they were honest and admit since 1986 that it was for a future event. Hopefully now that future event is tomorrow or a few days after.
I will be cremated with Maitland gas. I will live a long time to come.

[Paint it Black]

Snippet from Premier Oil News Alert 19.11.09.

* 3D acquired on Block 07/03 in Vietnam, rig due on location for second well, Ca Rong Vang, later this week, following on from successful Ca Rong Do discovery in June.

The thrill of the drill is about to add to the pre Xmas madness on several fronts! Will we see it back to 80c? A good chance for 70c at least I'd say.

[boysy]

i think alot of people who bought up top could likely sell off as we get closet to the td of the wells. Clearly still plenty of upside from either vietnam or timor sea as well as confirmation of a farm in in vietnam. Though nothing is in the bag quite yet look at how the vietnam fiasco has played out so far. Yes digger the mention of maitland was the same old wasnt it i mean how long does appraising really take they should just front up and say it is clearly on the backburner as to hard at this point in time. I think some valid questions have been made about ppp lack of production coming online med to long term i mean if the tui wells are not succesful it could be some years before any finds in vietnam and timor are bought online if there are of course finds. I wouldnt be supprised from ppp statement about going after projects that will add production quickly to ppp whether this be a farm in to recent finds or fast tracked projects who knows but it sounds as though they are not content to sit on there asses and watch the pile of cash grow albit at a slower pace with tuis natural decline.

[boysy]

Oilex kicks off drilling on first well in Timor Sea

http://www.smallcapnews.co.uk/article/Oilex_kicks_off_drilling_on_first_well_in_Timor_Se a/7845.aspx

[Huang Chung]

Boysy...I see you're now out of PPP. Did you make a quid out of it in the end?

[boysy]

my entry price was 32 sold half at 65 and the rest at 45. so didnt do too bad though i could of done alot better at 80 cents lol. Looks to be undervalued at the moment based on fundamentals but might come back before tui looks like there is little to no premium built into the sp currently around the drilling in taranaki and vietnam which should be approved sometime one would think.

[Paint it Black]

It would have been better if the 5% in Vietnam was confirmed instead of the announcement below but at least this gives certainty to the planned future drilling around the other 20 prospects in this zone later this year. The market has turned right off PPP recently due to it's low hit rate, delay with the Kan Tan and lack of clarity, however, at the current SP and drilling soon to commence at again Tui and with this announcement it's very tempting to start buying again.



PPP
19/02/2010
GENERAL

REL: 1055 HRS Pan Pacific Petroleum NL

GENERAL: PPP: PPP obtains ANP approval for JPDA 06-103

STOCK EXCHANGE ANNOUNCEMENT
19 February, 2010

PPP obtains ANP approval for JPDA 06-103

PPP is pleased to advise that the Autoridade Nacional do Petroleo of Timor
Leste, the Designated Authority for the Joint Petroleum Development Area
between Timor Leste and Australia, has granted approval for assignment of a
15% participating interest in the JPDA 06-103 Production Sharing Contract
("PSC") to PPP's wholly owned subsidiary Pan Pacific Petroleum (JPDA 06-103)
Pty Ltd ("PPPJ"). This interest has been acquired by farmin to a 5%
participating interest earned from each of GSPC (JPDA) Ltd, Bharat
PetroResources JPDA Limited and Global Energy Inc.

The Participating interests in the JPDA 06-103 PSC are now as follows:-
Pan Pacific Petroleum (JPDA 06-103) Pty Ltd 15%
Oilex (JPDA 06-103) Ltd (Operator) 10%
Global Energy Inc 20%
GSPC (JPDA) Ltd 20%
Bharat PetroResources JPDA Limited 20%
Japan Energy E&P JPDA Pty Ltd 15%

The contract area is located east of a number of existing producing fields
and Eni's Kitan oil discovery and, despite the disappointment of the recent
Lore-1 and Lolotoe-1 exploration wells, remains very attractive for further
exploration. The operator has mapped over 20 prospects with the potential to
host significant oil reserves, most of which have different geological
characteristics and are located to the north of the structures drilled by
Lore-1 and Lolotoe-1 (see operator's map over).

The results of the initial drilling program are being incorporated into the
interpretation of the remaining prospects and decisions on the drilling
program for 2010-2011.

For further information please contact:
Tom Prudence
Chief Executive Officer
Pan Pacific Petroleum NL
Telephone: + 61 2 9957 2177
www.panpacpetroleum.com.au
End CA:00191395 For:PPP Type:GENERAL Time:2010-02-19:10:55:11

[the machine]

ppp look very undervalued to me @ 24c au - probably just above cash position
the 2 tui drills to commence in april could / should, cause sp to be above 40c with just 1 success

if I have success elsewhere in my portfolio, I will be very tempted to buy back into ppp

M

[macduffy]

As at 31 December 2009 PP had cash equivalents of AUD106.6m, about 18cps for its 588.6m shares.

I'm waiting for some strength in the SP.

[boysy]

where did you get the A$106.6 m figure im looking at the half year to dec 2009 and it states cash equivilents at A$68 million

Australian Dollars $28.0 million
United States Dollars $27.8 million
New Zealand Dollars $11.2 million

or A$68 million

[digger]

where did you get the A$106.6 m figure im looking at the half year to dec 2009 and it states cash equivilents at A$68 million

Australian Dollars $28.0 million
United States Dollars $27.8 million
New Zealand Dollars $11.2 million

or A$68 million

My guess is some of it will come from adding back the monies put into drilling someone elses well that we are suppost to get back when they activate the back in clause. Better write that off for the next 10 years or certainly do not hold your breath waiting for it.Am waiting for the next report to get a better look at what is happening,but it now does look as if PPP is oversold.

[macduffy]

where did you get the A$106.6 m figure im looking at the half year to dec 2009 and it states cash equivilents at A$68 million

Australian Dollars $28.0 million
United States Dollars $27.8 million
New Zealand Dollars $11.2 million

or A$68 million

Oooops!

I was looking at the 30 June 2009 figures, wasn't I!

More like 11.5cps.

[boysy]

one would think your figure could be closer to the mark after all we will be recieving back costs of 10% if not more from vietnam for the 2 wells drilled there so far but alot of money must of gone down the tube on the timor sea drills

[the machine]

might be buying back into ppp sooner than I thought, with an annoucement out today that a member of the world bank is buying into one of my shares @ a 25% premium

m

[boysy]

sitting at 52 week lows the drilling of tui is agan put back you wonder if it will fall to near cash backing like it has in the past if theres failure at tui this down trend could continue into the low 20s perhaps even lower. Theres value in the company but the directors dont seem to be showing much initiative in going after new ventures the least they could do is farm into a known oil find it doesnt even have to be developed i mean enough of this wildcatstuff they are wasting there only form of income which is declining on elephant hunting i mean come on you need another soure of income before putting all your eggs in one basket.

[macduffy]

I'm not sure I'd describe the current drilling programme as "wildcat".

The Tui/Hoki areas are highly prospective, Tui is still a good earner, even at declining rates. New ventures of any proven value are still a big gamble as to whether the costs will ever be recouped.

Easy for me to say, I guess, having exited well last year. But I stand ready to re-enter at an opportune time.

[boysy]

iteresting snipits from awe presentation

http://research.iress.com.au/ids/current/20100317/01047701.pdf?uid=119508B08A441E2C8DB1F453024566D3C 04F0000D074C4FED2A7E340F1AB0000F4120000&ppv=

page 10 shows some more plays round tui which i havent sen before

[Dr_Who]

Doesnt give me much confidence with Alan Tattersfield selling down his large holding.

[troyvdh]

dear Dr...where did you get that from....cheers

[Dr_Who]

dear Dr...where did you get that from....cheers

28 Jan 2010 Change of Directors Interest Notice.. Alan T sold 2 million shares.

[macduffy]

28 Jan 2010 Change of Directors Interest Notice.. Alan T sold 2 million shares.

True, doc.

But he still has 70 odd million left! And we all need a little cash sometimes.

[troyvdh]

I have to admit that "skin in the game " is a very important issue for me....should this continue to be a factor I would trully be worried...as an aside can / could you ever envisage having so much dosh tied up in a company ?.....hell I cant....cheers

[Dr_Who]

I recall buying PPP about a year back cos they had approx. 28 cps in cash and now they have burnt it down to 11 cps in cash without adding any value. This doesnt give investors much confidence.

[troyvdh]

For what its worth ...I have e mailed this thread to PPP and asked for their response....

[the machine]

iteresting snipits from awe presentation

http://research.iress.com.au/ids/current/20100317/01047701.pdf?uid=119508B08A441E2C8DB1F453024566D3C 04F0000D074C4FED2A7E340F1AB0000F4120000&ppv=

page 10 shows some more plays round tui which i havent sen before

yes I like the prospects and plays - nice big pictures

M

[whatsup]

Can anyone throw some "light " on the reason why PPP in Aussie is at such a discount to it trading in N Z ?

[digger]

Can anyone throw some "light " on the reason why PPP in Aussie is at such a discount to it trading in N Z ?

My feeling is that after the exchange rate difference there is not that much. What there is would be explained by the NZ invester having a little more confidence in the TUI drills and some still likelyhood that NZO could increase its stake if the SP falls low enought.The AUS invester might not be generally that up on the NZ situation.

[macduffy]

I agree with that.

PPP has a higher profile in NZ, mainly because Tui is "local" but also because as one of a very few NZ listed mining and oil stocks it gets more attention from investors and the press than it does in Australia.

[the machine]

with kan tan iv now needing 3 weeks to repair mast, then tui drills unlikely to start until may - gives me more time for sp to soften and then I buy

M

[macduffy]

I suppose we must expect the loss of three weeks of comparatively settled autumn weather to result in further delays as drilling extends into winter.

Or might it lead to deferring some of the work to next season?

OK, I know, how long is a piece of string?

[troyvdh]

...the buy/sell quotes are interesting.....who is going to blink first......given that the SP went up 8% in the last hour..across the ditch

[Paint it Black]

...the buy/sell quotes are interesting.....who is going to blink first......given that the SP went up 8% in the last hour..across the ditch

You are right there are many more buyers than sellers which augers well for when the rig starts the Tui drilling in a week or so's time. There are a couple of big week's ahead for NZO & AWE at Hoki before PPP joins the party at Tui.

[troyvdh]

wow...someone blinked.....

[the machine]

have decided to not buy back into ppp for now, as at best sp could only double with tui success.

the shares I would have had to sell are poised to appreciate a lot more than double todays price [and in a shorter time span than tui drilling success]

M

ps, ppp was a great buy a few weeks back at 23c - hope you posters bought heaps of them

[macduffy]

have decided to not buy back into ppp for now, as at best sp could only double with tui success.

the shares I would have had to sell are poised to appreciate a lot more than double todays price [and in a shorter time span than tui drilling success]

M

ps, ppp was a great buy a few weeks back at 23c - hope you posters bought heaps of them

An intriguing post, tm.

Would you care to disclose the identity of the other stock(s)?

Disc: I'm not holding PPP either, having sold a few months ago.

[James.Anderson]

Looks like PPP.AUX is going to go up again my broker is telling me to buy 20,000 at 28.5c/29c
Very good price, He reckons there on the way back to 50c

Disc: My broker is about to buy me some......

[troyvdh]

Dear James ..as an existing holder of PPP...I can only say what a beaut choice...pin your ears back and buy till it hurts.......however and seriously... a piece of advice...ask this broker bloke how many he has...go on ask him/her......is he/she buying....

[James.Anderson]

Sorry mate allready sold them, got them at 28c sold 29c!!!!!

[mr.needs]

Sorry mate allready sold them, got them at 28c sold 29c!!!!!

A $200 gross profit on a $5600 trade.

How much was brokerage? How much tax will you have to pay?

[Dr_Who]

Sorry mate allready sold them, got them at 28c sold 29c!!!!!

Are you having a laugh?

[boysy]

ppp may have good prospects but mgmt need to show they are up to the task i hope they find oil at tui or that should be one rather heated agm

[Dr_Who]

ppp may have good prospects but mgmt need to show they are up to the task i hope they find oil at tui or that should be one rather heated agm

You are right. PPP had all the opportunities in the world with a cashed up balance sheet during the financial crisis. Unfortunately they couldnt capitalize on those opportunities.

[boysy]

Mgmt need to show that ppp are not a one trick outfit. Its strange considering that mgmt have more to lose than anyone else in the collapse of the sp one would think sh and mgmt objectives would be very much aligned. they got taken advantage of in vietnam and then jumped stright into the timor sea you just have to wonder if they can find another winner like tui as they certainly dont come around often.

[macduffy]

Mgmt need to show that ppp are not a one trick outfit. Its strange considering that mgmt have more to lose than anyone else in the collapse of the sp one would think sh and mgmt objectives would be very much aligned. they got taken advantage of in vietnam and then jumped stright into the timor sea you just have to wonder if they can find another winner like tui as they certainly dont come around often.

I don't know about being taken advantage of in Vietnam.

I can't believe that they weren't aware of the pre-emptive rights of other parties and in the end they did at least end up with 5% instead of the original 15%. Oil exploration is that kind of game unless you're a big player and can afford to make the running in lesser explored areas. Even then, there's the sovereign risk/sovereign rights angle to contend with.

Disc: Not holding at present.

[digger]

[QUOTE=macduffy;300470]I don't know about being taken advantage of in Vietnam.

I can't believe that they weren't aware of the pre-emptive rights of other parties and in the end they did at least end up with 5% instead of the original 15%. Oil exploration is that kind of game unless you're a big player and can afford to make the running in lesser explored areas. Even then, there's the sovereign risk/sovereign rights angle to contend with.

Disc: Not holding at present.[/QUOTE}

In a weerd way i would also say PPP did not get taken advantage of in Vietnam but did willingly set they selves up to be suckers and then got taken for the ride it always was. I held on through it as the directors had a large stake and for some stupid reason thought they might know something about what they were doing.They didn't . And by the way who says they still have 5% as this 5% is still subject to two other approvels

[macduffy]

Right, digger.

I should have said " a chance for 5% ".

The point of my post remains. Small oilies can only ever expect to pick up the crumbs unless they're prepared to risk all on a high risk play.

[the machine]

An intriguing post, tm.

Would you care to disclose the identity of the other stock(s)?

Disc: I'm not holding PPP either, having sold a few months ago.

macduffy, the other stock is kas on asx

M

[the machine]

macduffy, the other stock is kas on asx

M ppp up nicely today and those that bought at 23c would be laughing - 28% in a few weeks is pretty good.

m

[Silverlight]

Back to 26 cent on the NZX, is this worth buying again?

what did NZO pay for there stake?

[Paint it Black]

Back to 26 cent on the NZX, is this worth buying again?

what did NZO pay for there stake?

The PPP shareholder letter on the 27/1/09 says NZO paid A30c to bring them up to 15% of PPP - so they are in the red unfortunately today. I'm not sure but possibly they then paid more to later increase their stake. There doesn't seem to be much confidence in getting a favorable SW Tui report tomorrow with NZO. AWE and PPP all dropping at the end of play today - our luck hopefully improves soon with the Kan Tan IV which to date has been very disappointing with the mechanical delays compounding the Hoki duster result and further time taken to redrill at Tui. Now it is winter!

[troyvdh]

...not sure...however it is of some comfort (at least for me) that the main/biggest/directors holding's remain as they were...at least untill today....its the same old situation...those with different investment expectations...some short term...some long term...

silver right.....the above message was meant for yoy...cheers....

[the machine]

The PPP shareholder letter on the 27/1/09 says NZO paid A30c to bring them up to 15% of PPP - so they are in the red unfortunately today. I'm not sure but possibly they then paid more to later increase their stake. There doesn't seem to be much confidence in getting a favorable SW Tui report tomorrow with NZO. AWE and PPP all dropping at the end of play today - our luck hopefully improves soon with the Kan Tan IV which to date has been very disappointing with the mechanical delays compounding the Hoki duster result and further time taken to redrill at Tui. Now it is winter!

I think the most they paid was A30c to take holding just below the 15%

PPP down to A20c today - thats almost cash value, particulary with higher usd$

tomorrow for drilling update.

I still think ppp is good value up to 25c

M

[Sehnsucht888]

The PPP shareholder letter on the 27/1/09 says NZO paid A30c to bring them up to 15% of PPP - so they are in the red unfortunately today. I'm not sure but possibly they then paid more to later increase their stake. There doesn't seem to be much confidence in getting a favorable SW Tui report tomorrow with NZO. AWE and PPP all dropping at the end of play today - our luck hopefully improves soon with the Kan Tan IV which to date has been very disappointing with the mechanical delays compounding the Hoki duster result and further time taken to redrill at Tui. Now it is winter!


NZO only dropped at close on 5000 shares traded.. 56,174 for the day for a 5c drop, so you can't read much into that..
NZO Typical volumes were in the couple hundred thou area these days. Depth on both sides has been quite thin, and a quick buy or sell of modest quantity can move this quite far at the moment.
PPP dropped on 300 shares at 25c - 147 at close, the other almost 420,000 shares didn't move the price at 26c.

Looks more like someone trying to push down closing prices, than anything really substantial.

[boysy]

not the news everyone was expecting what next for ppp

Tui SW-2 exploration drilling update

STOCK EXCHANGE ANNOUNCEMENT

14th June, 2010

Tui SW-2 exploration drilling update

The Operator, AWE Limited, advises that wireline logging is still in progress at the Tui SW-2 exploration well.

Wireline evaluation of the previously reported oil shows in the top of the F Sand has established that an economic accumulation of oil is not present at the Tui SW-2 location. Upon completion of wireline logging operations the 7" liner will be run so that the well can be used for possible future gas injection.

The Tui South West prospect is located in mining licence PMP 38158 in the offshore Taranaki Basin and is adjacent to the producing Tui oilfield.

Kahu-1, to the east of the Tui oilfield, will be drilled immediately following Tui SW-2.

Participants in PMP 38158 are:
Pan Pacific Petroleum NL 10.0%
(through wholly owned subsidiary WM Petroleum Limited)
AWE Limited (Operator) 42.5%
Mitsui E&P Australia Pty Limited 35.0%
Stewart Petroleum Co Limited (NZOG) 12.5%

[boysy]

buy depth on the nzx looking very sad indeed hit 17.5 on the asx how much lower will it head if kahu is a duster

[Logen Ninefingers]

buy depth on the nzx looking very sad indeed hit 17.5 on the asx how much lower will it head if kahu is a duster

All they've got is Tui and when it runs out....what then? The prospects for PPP look bleak.

[boysy]

well they "might" have vietnam 5% of 80 odd million barrels is something. They really need to get some production online shortly and the only way this is going to happen is through asset purchases watch this space.

[boysy]

some one wants out ouch down to 20 on the nzx liquidity looking very weak only 62,000 on the buy side vs 500,000 on the sell

[whatsup]

some one wants out ouch down to 20 on the nzx liquidity looking very weak only 62,000 on the buy side vs 500,000 on the sell

And 100K at .11 !!!

[boysy]

someones putting in a sneaky bid arnt they will be interesting how this all pans out should be an interesting agm at this rate if there is one

[the machine]

someones putting in a sneaky bid arnt they will be interesting how this all pans out should be an interesting agm at this rate if there is one

well I am now back onboard as a direct ppp shareholder with 50,000 @ 16.5 and 50,000 @ 17 - av 16.75 - sold 20,000 nzo - i feel for those who bought in over last 12 months, but thats the risk you take. my stockbroker concurs @ 16.75 it must just be above cash and ppp make a profit every day with tui and also with the bank interest.

last year i sold all of my remaining 240,000, including some bought in early 1980,s before cgt - thus profit on the old shares was all tax free.

sellers are taking advantage of the tax losses before june 30, so come july 1st its a whole new ballgame and sp might be back above 20 - plus of course the drill spudding later next week will push sp higher.

M

[pietrade]

and what do you think of the chances that PPP will pay a dividend this year - as against the probability that NZO will ??

[boysy]

ppp wont pay a divi the last divi they paid was because they had so much cash coming in perhaps if they made it a shell company and paid out most of there cash in a divi ?

[Dr_Who]

well I am now back onboard as a direct ppp shareholder with 50,000 @ 16.5 and 50,000 @ 17 - av 16.75 - sold 20,000 nzo - i feel for those who bought in over last 12 months, but thats the risk you take. my stockbroker concurs @ 16.75 it must just be above cash and ppp make a profit every day with tui and also with the bank interest.

last year i sold all of my remaining 240,000, including some bought in early 1980,s before cgt - thus profit on the old shares was all tax free.

sellers are taking advantage of the tax losses before june 30, so come july 1st its a whole new ballgame and sp might be back above 20 - plus of course the drill spudding later next week will push sp higher.

M

Machine, how did you get the net cash backing of 16-17 cps? I have a lower cash cps. Maybe I have the wrong numbers.

[neopoleII]

""and what do you think of the chances that PPP will pay a dividend this year - as against the probability that NZO will ?? ""
nzo paid a bonus divi of 5 cents to get the options converted..........
ppp might pay a divi to prop the sp from hostile takeover.
i think nzo might have to pay a bigger divi this year as well to defend a takeover....... what with kupe about to start its 15-20 year income stream.
not to mention pike soooooooonish........

if this annual divi is low, its another 12 months of depressed sp, what with only 1 drill left for this season, and nothing confirmed for the next season.

funny how nzo sat on a pile of cash looking for a cheap entry into another oiler......... now that cash and the depressed sp could fuel their own takeover.

[macduffy]

Don't overlook the fact that directors hold controlling interests in PPP against any unwanted, low-ball takeover.

I don't know the numbers now but last time I looked it was somewhere in the 30% range.

I don't hold PPP these days but if I did the last thing I'd be worried about would be a dividend. The attraction of oilys to most investors is the prospect of the big find, not the dividend income - IMO of course.

[the machine]

Machine, how did you get the net cash backing of 16-17 cps? I have a lower cash cps. Maybe I have the wrong numbers.

that is my gut feeling and also my stockbroker said my average buy of 16.75 is almost like buying cash.

ppp have a lot of upside and after june 30 tax loss selling then IMO sub 20 is no more - if I am right them up 20% in a week, with tui drill.

had been out of the stock since oct and a tad concerned about missing out on any sp increase if corvas moves ahead - which i think will happen within next 12 months given nearby developments.
M

M

[macduffy]

As at 31 Dec 2009, latest figures available, PPP had cash of $68m - about 11.5cps (All figures AUD)

Revenue for the half was $24m but nevertheless cash decreased by $34.4m during the period.

We don't know what cashflows have occured since but a similar half would halve available cash.

What we do know is that Tui's flow is gradually slowing and that PPP would have had to bear their share of exploration costs. Oil shipments tend to be lumpy so that's another "unknown".

My guess is that cash will be lower at 30 June than at 31 December, ie likely to be below 11.5cps.




Disc: No longer holding.

[adv]

macduffy

According to the March Quarterly Report:

Cash - $82.0m
Receivables - $3.5m
Tui Oil inventory - 10,090 barrels
Tui Income Tax Asset - $1.2m

Accrued Royalty Taxes - $4.4m

So say net $83m. Yes there will be additional exploration costs this quarter - so net cash may be slightly lower - but certainly closer to the 14.5c mark than 11.5c.

[macduffy]

Thanks, adv.

It's clear that I'm no longer keeping up to date with PPP!

[the machine]

here we have a really good progress report. IMO they will finda heapof oil

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01075939

M

[digger]

So PPPV finally has all the aproval for the the 5% of vietnam block and will be getting back all excess money spent on the 15% origional holding.Stll not a wimper from the market. Did i read this correctly or has the market factored this in completely. Would have thought this news would have lifted the SP 5 or more cents.

[boysy]

It wont mean much until they develop the field and get the production coming a good results but much less than the 15% they initially went after. A bad time to bring out good news the SP has hardy reacted at all i just hope for holders sake Kahu comes in otherwise the sp will likely collapse further. The upside being they will get the funds back from the first 2 drills well 10% of the 15% they contributed.

[upside_umop]

PPP is looking an interest case. Much like it was when I went 'all in' during the GFC albeit lower forward production with the decline of Tui.

Basic financial position sits like this as at 31/03/2010 from quarterly:
Cash held (refer cashflow) - $82
Receivables for oil sales (gross) - $3.5m
Tui oil inventory (WMP share) - 10,000 barrels ~ $0.5m after tax
Income Tax asset - $1.2
Tui deposit - $5.5m
Liabilities:
Accrued royalty taxes - $4.4m

Net cash equivalent: $88.3m

Since then, we have had 2 drills in the Tui extension/appraisals, with apparently subeconomic oil.

Approx net cost to PPP: $10m

We also have had some clarification surrounding the Vietnam venture. PPP will get reimbursed for 10%. According to the 2009 Annual report, segmented reporting showed $12.95m liability in Asia. Im assuming this is all to do with Vietnam. 2/3's of this cost is getting reimbursed, which using an appropriate exchange rate should yield:

My calculations approx to PPP - $8m AUD.

Then there is production. Around $9 million I would think. Take away your taxes, etc should leave about $2m.

Total net cash equivalents now should stand ~ $88 million still. With a market cap of $94m its getting quite a safe play and any drill hype/news could make this easy money. Potential drivers going forward would obviously be:

-NZO boosting their stake to 19.99% (FIRB approval to increase to this). Remember NZO paid 30 cents AUD for their share and know how prospective Tui fields are.

-Kahu. Although Tui SE has come in sub economic, I doubt it will remain for long. Remember there is Tieke which is displayed as an oil field but sub economic when found. Combine Kahu, Tui SE and Tieke and we could potentially have another 30 million barrels to tie into the field.

-Bahamma's shallow play. AWE are currently marketing this play to reduce their exposure. It may be risky, but will still provide a BESBS.

-Maitland. Its been dragging on but again, a lot of activity over in that NW shelf. I dont know a hell of lot about it to tell the truth and it looks as though the JV doesnt either ~ reserve and production uncertainty.

-Vietnam. They ballsed this one up, everyone knows it. Essentially, they took 15% of the risk for a 5% stake. Where is the risk/return in that one!? Nevermind...I hope Tom Prudence and the board has learnt from that one. Anyway, they struck 90 metres of net oil play...no info surrounding reserves yet. I dont know the fiscal attractiveness of vietnam either (taxes etc). Does anyone? I know Thailand is ridiculous --> Look at ROC. Still, 5% of a new field will be nice.

Other than that, PPP hasnt got too much else going for it. They missed a lot of opportunities over GFC and have had a couple of shoddy wells/decisions. To me, it would be more of a trade, as there is no long term confidence given recent decisions of the board/management in the last 2 years.

What do others think? 10 cents on its way? Oi Shasta, we should have an OEL vs PPP when the SP collude together once again...looks like it might happen.

[boysy]

well kahu dry so a few punters will bail today wouldnt it be interesting if ppp bought into a few of ottos service contracts in the pines that could be very interesting you have to wonder what the next step from ppp will be following on from this series of dissapointments. No near term production possibilities unless they buy into a productive field. Its been below cash backing before and by the looks of it it will get there again today.

[upside_umop]

Tattersfield buying up on market. Over 2 million is nothing to be sneezed at either...

[macduffy]

In fact, three directors have each bought approx 2 million shares each on market recently.

[upside_umop]

Your right MD, only scrolled down a little bit as was at work. 7 million almost....

[troyvdh]

what are we saying then.....am thinking of buying....not sure why....yet.....

hold 50K

[macduffy]

what are we saying then.....am thinking of buying....not sure why....yet.....

hold 50K

It means that the directors see the stock as being oversold, nothing more, nothing less.

Usually a signal to buy but DYOR!

[boysy]

looks like the post director buying euphoria has left what will the quarterly look like a 2 page job ?

[upside_umop]

yeah, i'll be looking out for their plans now that tui is looking less likely. i still think they might try and tap tieke and tui se if oil prices were less volatile and the global outlook less certain.

i'll also be looking for some more info re vietnam.

potential for ppp to farm into barque too? nzo have stated they wanted to reduce their 40% exposure and think its drill ready 3rd/4th quarter?

[the machine]

looks like the post director buying euphoria has left what will the quarterly look like a 2 page job ?

hopefully at least 3 pages, including a bigramp up about vietnam.

my broker thinks ppp oversold

M

[KentBrockman]

potential for ppp to farm into barque too? nzo have stated they wanted to reduce their 40% exposure and think its drill ready 3rd/4th quarter?


Please please please, do not join NZO in Barque!

[the machine]

amazing no posts today about the quartery - ppp up 1.5c on decent volume - finished at 18.5c.
including the pending usd$10m refund for the 10% of vietnam dill the cash holding now of approx 18c au per share shows that recent buying by directors was like buying cash at approx 18% discount.

earlier in the week my broker suggested could hit low 20's in early august - its halfway there now.

M

[boysy]

plenty of dodgy looking accounting going on the cash figure included the Tui FPSO lease contract in the cash figure and not included the tui drilling costs the next quarterly would give a more representative cash backing

[stanace]

113 trades for just over $111,000. Thats over 100 trades at less than $1000. Talk about manipulating the market!.

[the machine]

113 trades for just over $111,000. Thats over 100 trades at less than $1000. Talk about manipulating the market!.

computer buying

M

[Catalyst]

Might be time to revisit PPP now that its trading below its cash backing again.

Main Assets:
Net Cash = A$100 approx (from 30 June quarterly activities rpt)
2.2m barrels of oil to extract from Tui over the next 9 or so years (PPP's share)
Ignoring anything else

Number of shares = 588.6m
Share Price = A$0.165
Market cap = A$97m

Valuation:
Net cash = A$100m / 588.6 = 17cps
2.2m oil reserves = ((2.2m x US$75/bl / 0.85 AUD/USD x-rate * 45% rev:cash factor) / (1.12)^4.5 (assuming all cash flows will occur in year 4.5 (half-way) and discounting back to today at 12% pa))/ 588.6m shares = 9cps

Total = 17c + 9c = A$0.26

A low risk entry point I would have thought, but with no drills immediately imminent I can't see a catalyst either to substantially rerate it over the near term. Unless it can find a better place to put all its cash.

[boysy]

The net cash figure should be lower look at what they have and have not included as expeneces for the current quater the next quarterly should give a more representative view of actual net cash. I believe the figure is closer to 14-15 cents. No upside built in because they have proven they cannot capture an opportunity in the midst of the GFC sitting on a huge cash pile. Tui up until now had been the breadwinner but with it declining and no other revenue stream the market will take scant view of the cash they have as they will have to spend more to make more.

[Catalyst]

Boysy - until it reports its FY10 result this week I can't see the expenses. I'm only going on what the company have declared as its cash reserves at 30 June + its receivables that should have been received by now. Unless the company have big tax or royalty bills to pay, I think A$100m is a close approximatation for its net cash position at at today.

[James.Anderson]

Net Profit - Down 122%!!!

[boysy]

Yep a good read nothing new to report here . Nothing much in the short term to get excited about in mid term vietnam and other prospects may be worth a look but at least they admit tui is declining and they need to find a replacement fast.

[Corporate]

Tom Prudence as paid over $820k this financial year!!!!!!!

[boysy]

You really do have to wonder what they are getting paid for they dont seem to have any ideas or following any leads. Seems a bit excessive for doing nothing

[Corporate]

You really do have to wonder what they are getting paid for they dont seem to have any ideas or following any leads. Seems a bit excessive for doing nothing

with the work i do I see some pretty big salaries...but like you say. That seems like a tui gravy train to me!!!

[boysy]

Yes but sadly the Tui gravy train is heading downhill rather fast they have to pull a rabit out of the hat and get a new asset onstream fast

[the machine]

ppp just got kicked out of the asx300

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01094992

M

[mikew]

Aus. market trading vol. 3.4m. Are these directors buying or dumping shares? Should like NZO use some cash reserve to buy back shares. Now sp well below NTA 19c and cash backing 18c, seems no near term upside signs, maybe announcement tomorrow.

[the machine]

its looking like ppp are about to announce something really good, since sp up to 19c with 3m traded.

M

[mikew]

machine announcement just out

The Operator, AWE Limited, has reported that the recommencement of production
from the Pateke-3H well has been delayed due to further technical issues.
A clean up flow of the well was undertaken prior to the Kan Tan IV rig being released
from site on 15 October, 2010, with the well repair activities having been successfully
completed. However, the re-establishment of full oil production from the well has
encountered further constraints.
AWE, in consultation with technical advisors, is undertaking a thorough review of the
issue and this trouble-shooting will continue to determine the cause and most efficient
remedy.
Participants in PMP 38158 are:
Pan Pacific Petroleum NL 10.0%
(through wholly owned subsidiary WM Petroleum Limited)
AWE Limited (Operator) 42.5%
Mitsui E&P Australia Pty Limited 35.0%
Stewart Petroleum Co Limited (NZOG)

[the machine]

machine announcement just out

The Operator, AWE Limited, has reported that the recommencement of production
from the Pateke-3H well has been delayed due to further technical issues.
A clean up flow of the well was undertaken prior to the Kan Tan IV rig being released
from site on 15 October, 2010, with the well repair activities having been successfully
completed. However, the re-establishment of full oil production from the well has
encountered further constraints.
AWE, in consultation with technical advisors, is undertaking a thorough review of the
issue and this trouble-shooting will continue to determine the cause and most efficient
remedy.
Participants in PMP 38158 are:
Pan Pacific Petroleum NL 10.0%
(through wholly owned subsidiary WM Petroleum Limited)
AWE Limited (Operator) 42.5%
Mitsui E&P Australia Pty Limited 35.0%
Stewart Petroleum Co Limited (NZOG)

thanks mikew, thats not a good announcement so will counter anything positive that may be linked to the sp increase

M

[mikew]

maybe this is the announcement they waiting for,but unfortunately this definitely is not a good one, depend on how sp going today.

[boysy]

yes it is not a good ann considering so much money was spent for as yet no result. Management are still living off Tui and that has declined strongly they need to find some production replacement very quickly as we all know how ppp can spend the cash up quick.

[the machine]

PPP price is hanging onto gains even on the back of the bad news - thus something is cooking IMO.

M

[mikew]

finger cross

[the machine]

great to see Pateke back into production after the workover and the "snag" - this should now help the sp along

m

[Bobcat.]

Share price has slide away since announcement that Vietnam has been a flop and little new exploration will happen until early next year but this company has got cash, is debt free and its bank covenants are strong. It's time to buy when others see no reason why.

[boysy]

Big call if management cannot get a project in the GFC i dont think they have much hope now. They have so much skin on the line one would think if they cannot get it right so far what makes you think things will change. They are getting big pay cheques for little work sitting on the tui laurels the cash will only last for so long without a new source of income.

[the machine]

Share price has slide away since announcement that Vietnam has been a flop and little new exploration will happen until early next year but this company has got cash, is debt free and its bank covenants are strong. It's time to buy when others see no reason why.

bobcat, have been thinking along these lines as well.

but all my $ going into SER presently

M

[the machine]

this morning I topped up with another 200,000 ppp since it was like buying cash - maybe even with a discount.
surely some drilling news will be out soon and also only 7 weeks to the quarterly due.
ppp must be raking in the tui cash.

then just after I bought out pops this announcement which is way out of left field - one has to ask why make the announcement???

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01131351

it took me 2 hours to think about it but I think it might be related to the 400,000 that went through very early on Tuesday for 17c, with the volume and early purchase for the day being very adnormal - someone wanted these shares and in a hurry to buy them.

I may be wrong in tying them together.

now I own more ppp than I did 22 months ago, before I swapped them all for the KAS bag factory.

hopefully ppp will deliver soon.

M

[skid]

Since they are tradeing at cash value or near it seems unlikely there is much downside.As far as the upside-a good ann report of cash and or a drilling program,and away she goes.Seems like a good punt with the high oil price-should be interesting 6-7 weeks

[boysy]

The downside being the company has no other source of income other than a Tui which is quickly declining. They have to find a new source of revenue they have plenty of funds available i still find it difficult to see how they cannot buy into a producing field or one which is about to be developed at the end of the day the permits they farmed into have come to nothing perhaps use the cash to but some reserve and substantial addition production. We know how they can blow cash but little to no upside factored in the market clearly thinks management are not going to create SH value.

[the machine]

The downside being the company has no other source of income other than a Tui which is quickly declining. They have to find a new source of revenue they have plenty of funds available i still find it difficult to see how they cannot buy into a producing field or one which is about to be developed at the end of the day the permits they farmed into have come to nothing perhaps use the cash to but some reserve and substantial addition production. We know how they can blow cash but little to no upside factored in the market clearly thinks management are not going to create SH value.

boysy, yes tui is in decline - for the next 10 years or so.
meanwhile tui produces a profit for ppp and all jv partners with every shipload of oil [for the next 10 years or so]

vietnam appraisal is due to be drilled early 2011 I think - so success there should double ppp reserves.

anyway its up to you.


I think it is ironic that last year I sold out of PPP and now am back in them with just a fraction of the profit I made elsewhere

M

[boysy]

Thats the funny thing isnt it big things were expected from PPP it has however traded below cash backing in early tui days then went much higher on Vietnam news then fallen right back down to pre tui levels as cash is being spent quicker than it is being made. Vietnam may be a goer it certainly could shore up some reserves for ppp you have to wonder if they can do something productive with the remaining cash they have though

[the machine]

Thats the funny thing isnt it big things were expected from PPP it has however traded below cash backing in early tui days then went much higher on Vietnam news then fallen right back down to pre tui levels as cash is being spent quicker than it is being made. Vietnam may be a goer it certainly could shore up some reserves for ppp you have to wonder if they can do something productive with the remaining cash they have though

A decision was due on december 8 re drilling PEP 38483.

Partners were being sought ahead of drilling campaign.

Maybe it is going ahead and just has not been released to market yet as waiting for final payment / sign off by government.

I am looking for an answer to why were those above market buys early last tuesday and fridays announcement from ppp

PPP need to do their talking with the drill bit

M

[spook]

I am on here looking for answers! Oil is reaching for $100 a barrel again - why is PPP sp still sinking? Bad news coming up in Vietnam? Happy New Year everybody!!!

[boysy]

They havnt managed to capitalise on TUIs great run and strong cash flows. What have they achieved to supplement income from tui ? I find it so strange that management have so much riding on the company yet they have failed to create any shareholder value aside from Vietnam which was handled badly. There must be plenty of companies out there with producing fields looking for cash these Muppets are being paid to simply sit on thier hands i call it the tui curse none of the JV partners have capitalised on the great timing and cashflow of tui look at NZO and AWE they seem to be in the same rut.

[Beagle]

They havnt managed to capitalise on TUIs great run and strong cash flows. What have they achieved to supplement income from tui ? I find it so strange that management have so much riding on the company yet they have failed to create any shareholder value aside from Vietnam which was handled badly. There must be plenty of companies out there with producing fields looking for cash these Muppets are being paid to simply sit on thier hands i call it the tui curse none of the JV partners have capitalised on the great timing and cashflow of tui look at NZO and AWE they seem to be in the same rut.

No Boysy its the Tony Radford Curse, he's on the board and just look at what a fiasco his other companies have endured, NZO and PRC. That the company is trading below current cash on hand value despite continuing income from Tui is the market telling you it has no confidence whatsoever and thinks the Directors and management will continue to destroy value. I think the market is right and will avoid this classic "value" trap.

[macduffy]

The answer's fairly simple, IMO.

If you don't have confidence in the management, don't invest in the company.

[Beagle]

The answer's fairly simple, IMO.

If you don't have confidence in the management, don't invest in the company.

Exactly why I sold out of NZO. No confidence left.

[Sharp737]

Sold out of PPP a long time ago. Now if only they had say bought into Norwest Energy months ago...they would be sitting a pretty profit but not only that, if they had of taken a large stake, they could have had a significant possible shale gas stake. Have not been very impressed with PPP's ability to see good investments and yet they have been willing to drill, drill, drill with only very limited success. NWE is only one company they could have been looking at months ago at very modest cost. Even now, it could be a buy but they won't. Bit sad really and PPP has been good to us in the past...

[the machine]

Sold out of PPP a long time ago. Now if only they had say bought into Norwest Energy months ago...they would be sitting a pretty profit but not only that, if they had of taken a large stake, they could have had a significant possible shale gas stake. Have not been very impressed with PPP's ability to see good investments and yet they have been willing to drill, drill, drill with only very limited success. NWE is only one company they could have been looking at months ago at very modest cost. Even now, it could be a buy but they won't. Bit sad really and PPP has been good to us in the past...

a successful appraisal in vietnam will double ppp reserves.

M

[mistymountain]

a successful appraisal in vietnam will double ppp reserves.

M

Some positive light in the recent announcement. Market responding favourably at this stage.

[the machine]

time to start buying ppp and move on from the significant "losses" in 2009/first half 2010

M

[the machine]

ppp now gathering momentum with almost 10m shares traded so far this month - give it another week and should easily exceed 20m - thus largest monthly volume since july. sp should keep going up with the pending vietnam drill, so should soon be highest price since march 2010.

appreciate if any chartest could start updating this thread.

M

[the machine]

from premier website



Vietnam
The Ocean General rig is expected to arrive on location to drill the Cá Rong Ðo (CRD) well within the next fortnight, subject to the release from its present operation. The objective of the well is to define the resource associated with the earlier discovery in 2009, currently estimated at a mid-point of 60 mmboe. Following the CRD well, the rig will then move on to drill two wells on the Tuna block Indonesia.

M

[boysy]

ann out-http://www.nzx.com/markets/NZSX/PPP/announcements/4642260/Vietnam-Block-07-03-Drilling-Update

Vietnam Block 07/03 Drilling Update

Stock Exchange Announcement 10th February 2011
Vietnam Block 07/03 Drilling Update
Premier Oil Vietnam South B.V. (“Premier”), the operator of Block 07/03, have advised that the semi-submersible drilling rig the “Ocean General” is now on location and is preparing to start the drilling of the CRD-2X appraisal well.

CRD-2X will evaluate the oil and gas discovered in multiple stacked reservoir layers by CRD-1X drilled in 2009, and has been planned to reduce uncertainty in whether the CRD structure contains sufficient volumes to support a potential development. Premier currently report the estimated mid-point of the discovered resources at 60 MMboe.

The CRD-1X well tested two of these reservoir zones which flowed oil at a combined rate of 3,265.4 barrels of oil per day plus 8.1 million standard cubic feet of gas per day, through a 48/64” choke. No water was produced from either zone.


Partners in the block are:
Pan Pacific Petroleum (Vietnam) Pty Ltd 5%
(a wholly owned subsidiary of Pan Pacific Petroleum NL)
Premier Oil Vietnam South B.V. (Operator) 30%
Vietnam American Exploration Company, LLC. 40%
(a wholly owned subsidiary of Pitkin Petroleum Plc)
PearlOil (Ophiolite) Ltd. 15%
PetroVietnam Exploration and Production Corporation Ltd 10%

[RenHoek]

A bit old now, but here's the latest press release

PPP
17/02/2011 16:47
MINE

REL: 1647 HRS Pan Pacific Petroleum NL

MINE: PPP: Vietnam Block 07/03 Drilling Update

Stock Exchange Announcement 17th February 2011
Vietnam Block 07/03 Drilling Update

Premier Oil Vietnam South B.V. ("Premier"), the operator of the Block 07/03
Production Sharing Contract, have advised that the semi-submersible drilling
rig the "Ocean General" spudded the CRD-2X appraisal well on Thursday 10th
February. The well is being drilled in a water depth of 315m, with a
planned total measured depth of approximately 3100m BRT (below rotary table).
As at 0600 hours on 17th February the well was at 705m BRT.

CRD-2X will evaluate the oil and gas discovered in multiple stacked reservoir
layers by CRD-1X drilled in 2009, and has been planned to reduce uncertainty
in whether the CRD structure contains sufficient volumes to support a
potential development.

Partners in the block are:
Pan Pacific Petroleum (Vietnam) Pty Ltd 5%
(a wholly owned subsidiary of Pan Pacific Petroleum NL)
Premier Oil Vietnam South B.V. (Operator) 30%
Vietnam American Exploration Company, LLC. 40%
(a wholly owned subsidiary of Pitkin Petroleum Plc)
PearlOil (Ophiolite) Ltd. 15%
PetroVietnam Exploration and Production Corporation Ltd 10%

[RenHoek]

So...
Given this statement in the last press release.

"...CRD-2X will evaluate the oil and gas discovered in multiple stacked reservoir layers by CRD-1X drilled in 2009, and has been planned to reduce uncertainty in whether the CRD structure contains sufficient volumes to support a potential development..."

Is there any estimation on how long this evaluation will take?

I have already emailed PPP, but am waiting for a response.

Thanks all

[the machine]

So...
Given this statement in the last press release.

"...CRD-2X will evaluate the oil and gas discovered in multiple stacked reservoir layers by CRD-1X drilled in 2009, and has been planned to reduce uncertainty in whether the CRD structure contains sufficient volumes to support a potential development..."

Is there any estimation on how long this evaluation will take?

I have already emailed PPP, but am waiting for a response.

Thanks all

RenHoek, looking at the announcement flow from the 2009 drill then Thursday is announcement day - 3 Thursdays to go to complete the drill without coring, 4 if they do. Then it might take 2 more Thursdays to figure out what they have got.

I expect they will core as this is needed before any development decisions.

M

[boysy]

Not looking particularly promising from the latest release you have to wonder how much lower it could fall on negative news

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01158270

[the machine]

Actually I think its quite good as 3 days have passed from feb 28 when total depth was reached and to still be doing logging implies they have hit something.
whats it cost ?- us$1m a day to be doing this.

the language in the announcement is typical of what was said for the 2009 drills and now next announcement will be a week away

meanwhile premier oil are up in the UK

M

[boysy]

PPP removed off all all ordinaries index

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01158434

[gambier33]

S&P/ASX have changed the way NZ and PNG domiciled companies listed on the ASX are included in their indices. Whereas the total number of shares issued by these companies were previously used to calculate their ranking, now only the shares registered on the ASX are used.

[the machine]

with todays vietnam appraisal announcement we should either know success or failure.

success should see sp jump as there is no value attributed to the drill in the sp - but failure will see knee jerk reactions and sp drop to say 14c au - well below cash backing.

5-6 hours time to go now before we know

m

[Lizard]

Drilling another 500m - is that Plan B?

[mikew]

Mostly like they didn't strike any oil:(

[geezy]

But sp is up on NZO?

[the machine]

Drilling another 500m - is that Plan B?

we don't know what they have found - but since still spending big bucks on going deeper then one can but hope they have found some oil

M

[Lizard]

we don't know what they have found - but since still spending big bucks on going deeper then one can but hope they have found some oil
M

Reads to me like there is hydrocarbon, but that reservoir structure may be adding the question marks.

[the machine]

ppp held up pretty well this week with all the carnage - clearly holders not willing to sell many shares

m

[the machine]

link to update for vietnam appraisal drill - gearing up to conduct a drill stem test

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01163316

M

[the machine]

in theory thursday is last chance to buy ppp dirt cheap - assuming success with the drill stem test.

interesting flurry of volume just before ask closed today

M

[boysy]

premier oil down strongly overnight did the result leak out early ?

[mikew]

in theory thursday is last chance to buy ppp dirt cheap - assuming success with the drill stem test.

interesting flurry of volume just before ask closed today

M

Machine, historically your prediction is always wrong, hopefully this time is right.

[Lizard]

premier oil down strongly overnight did the result leak out early ?

May have been affected by hike in the UK levy on North Sea oil production?

[digger]

premier oil down strongly overnight did the result leak out early ?

Lets keep it in mind that as of todays release the results are not out yet. Must have something to take this long but it must also be margional or else the facts would have been released.Think if it is NO we will be better off with the 10% taken off us and the monies returned on that piece.

[the machine]

Lets keep it in mind that as of todays release the results are not out yet. Must have something to take this long but it must also be margional or else the facts would have been released.Think if it is NO we will be better off with the 10% taken off us and the monies returned on that piece.

Digger, not sure what time you posted - my screen shows 0546.

Anyway, when one considers last Friday they were preparing to conduct a drill stem test then surely they were aware how long it would take. after todays announcement they are still preparing do do the test - what are they waiting for? a superrtankler to offload all the oil would be nice but I doubt it.

This must be very big to warrant the big bucks being spent.

we just have to wait.

m

[the machine]

in 2009 it took 3 weeks from logging to then conduct the test and release the results

3 weeks is up today

M

[Paint it Black]

Yes it could be an important day for PPP. If the rig has being sitting there for 3 weeks during the testing there must be something interesting down there! Also a small flurry of buying/selling on the ASX this morning?

[the machine]

still we wait for news.

found this promo by premier from 2009 - the permit is very good and underexplored because of no agreement between indonesia nad vietnam for at least 2 decades

http://www.google.com.au/url?sa=t&source=web&cd=5&ved=0CDsQFjAE&url=http%3A%2F%2Fwww.slideshare.net%2Fplsderrick%2 Fpremier-oil-block-0703-nam-con-son-basin-vietnam-investment-opportunity&ei=vqifTfrsH4SCvgPuqe3-BA&usg=AFQjCNEhUQTaeYjXpr58gWDrf6PdfVE0FQ

M

[digger]

still we wait for news.

found this promo by premier from 2009 - the permit is very good and underexplored because of no agreement between indonesia nad vietnam for at least 2 decades

http://www.google.com.au/url?sa=t&source=web&cd=5&ved=0CDsQFjAE&url=http%3A%2F%2Fwww.slideshare.net%2Fplsderrick%2 Fpremier-oil-block-0703-nam-con-son-basin-vietnam-investment-opportunity&ei=vqifTfrsH4SCvgPuqe3-BA&usg=AFQjCNEhUQTaeYjXpr58gWDrf6PdfVE0FQ

M
Hi yes still we wait. Should almost qualify as a criminal offence if after all this time it was just a ploy by the drilling company to keep there cost rolling.Do not know what else to think. Still we wait.

[the machine]

Digger I see from Premier report a few weeks ago that the Vietmese government approved the appraisal program and this is the first hole in the appraisal program - "first hole" being the key term. Also saw elsewhere the drilling depth map and it appears the appraisal is only about 2km from the discovery hole, thus its not a very big stepout.
I would not be surprised if the appraisal program is excluded from the drilling commitment program - being 2 more exploration holes in 2011/2012 and 1 hole in 2013 - this would tie in with the 3 unpriced options Premier have for the Ocean General.

Frankly I suspect the 2 exploration holes will happen straight after Premier finish the 2 holes in their Tuna permit in Indonesia - thus in 5 - 6 months time they are drilling again in permit 07/03.


Would be nice if Diamond Offshore updated their rig status report - latest March 17 and/or Rigzone had an update for the Ocean General - one has to subsribe to that though.

M


M

[Marilyn Munroe]

Vietnam drilling update.

http://www.nzx.com/markets/NZSX/PPP/announcements/4871382/Vietnam-Block-07-03-Drilling-Update-11-April-2011


Boop boop de do

Marilyn

[the machine]

Vietnam Block 07/03 Drilling Update 11 April 2011

Stock Exchange Announcement 11 April 2011
Vietnam Block 07/03 Drilling Update
Premier Oil Vietnam South B.V. (“Premier”), the operator of the Block 07/03 Production Sharing Contract, has advised that the CRD-2X appraisal well has been drilled to a TD of 3785m MDRT, and two drill stem tests of the hydrocarbon bearing sands in the Oligocene section have been conducted. The first zone tested flowed gas and condensate at rates of 9.7 MMSCFD and 870 BOPD respectively through a 40/64” choke. The second zone tested flowed gas and condensate at rates of 17 MMSCFD and 1730 BOPD respectively through a 56/64” choke.

CRD-2X has been planned to evaluate the oil and gas discovered in multiple stacked Miocene and Oligocene reservoir sands by CRD-1X in 2009 with the aim of reducing uncertainty in whether the CRD structure contains sufficient volumes to support a potential development. CRD-1X tested two zones in the Miocene sands which flowed oil at a combined rate of 3,265.4 BOPD plus 8.1 MMSCFD, through a 48/64” choke, with no water. However, it was not possible to flow test the Oligocene sands at that time.
The positive results from the testing of the Oligocene section in CRD-2X are very encouraging. The well will now be sidetracked to further evaluate the distribution of hydrocarbons in the Miocene sands. An update will be provided when the results of the sidetrack have been fully integrated with the other well results.

[Paint it Black]

You had it covered all the way Machine - nice to get some positive news at last from the resource stocks.

What do you make of the flow rates announced and timing for the next news?

[the machine]

You had it covered all the way Machine - nice to get some positive news at last from the resource stocks.

What do you make of the flow rates announced and timing for the next news?

Paint it Black - the ppp announcement is mostly about lower sands where its mostly gas - hence sp did not do a lot today.

Premier's announcement on the other hand says the Miocene sands have now been proven - now why was that not said before and we had to make our own judgement.
Miocene sands is where the good oil numbers came from and it will probaly take them 3 weeks before they can run any test with the sidetrack

back to the lower sands and Premniers comments about upside - is this in addition to the 10m 60m 80m barrels - hoope so

Time to buty more ppp as won't get any cheaper - I bought more today

M.

[Paint it Black]

Thanks Machine. It's all patience with these guys while trying to read between the lines! Theway I read it is the total lower sand flow rate is 2600 BOPD which isn't far behind the 3265 BOPD reported in 2009 for the upper sands and there is a lot more gas. They are also 'very encouraged' which is a rare comment so I agree it should be all up from here. To me we have now come along way with both the 5% holding in the block confirmed and a very good result on the second well. I also bought today and may again tomorrow especially at NZ23c/24c or A16.5c . Tui must also be ticking along nicely for PPP with the Tapis price rising steadily.

[the machine]

see some action in the carnavon permits with TAP selling out - this could see some more exploration in the permits [we hope]

http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01170000

M

[the machine]

well it looks like were onto a winner with the vietnam appraisal.

expect ppp will make an announcement before asx opens.

I was very tempted to buy another 100,000 ppp this morning at 16.5c au, but am kicking myself that didn't.

27 April - Exploration and appraisal update
27 April - Exploration and appraisal update
Cá Rống Ðo (CRD), Vietnam (Premier 30%)
Premier is pleased to announce that it has successfully completed operations on the appraisal sidetrack CRD-2X-ST on block 07/03, offshore Vietnam. This sidetrack reached its planned total depth of 3,340 metres (m) in the Miocene section and intersected 18.3m of net oil pay. This compares with 34.4m of net oil pay intersected in the up dip CRD-1x well and 3.8m in the down dip CRD-2x well.

The sidetrack followed on from the CRD-2X well, as announced on 11 April 2011, which was drilled to a total depth of 3,785m and successfully tested gas and condensate in two reservoir zones in the Oligocene section. The total net condensate/gas pay in this well was 72m. This compares with 17m of net pay penetrated in the Oligocene section in the up dip CRD-1x well.

The CRD-2X-ST appraisal well completes this phase of drilling in Block 07/03 and the results will be incorporated into the assessment of the resource potential of the Cá Rống Ðo accumulation.

The CRD-2X well will now be plugged and abandoned before the Ocean General drilling rig moves to Indonesia to drill two exploration wells on the Tuna PSC operated by Premier. The first result from these wells is expected in May.

Cherry, Egypt (Premier 20%)
In Egypt, on the North Red Sea (NRS) block 1 licence, the NRS-2a exploration well has reached a total depth of 5200m and is being plugged and abandoned. The well encountered hydrocarbon shows whilst drilling but did not intersect reservoir quality sandstones. The results of the well will now be integrated with geologic, seismic and engineering data to determine if alternate opportunities exist elsewhere on the block.

Grosbeak, Norway (Premier 20%)
The Grosbeak appraisal well in Norwegian licence PL378 was spudded on the 24 April 2011 and is drilling ahead using the Songa Delta rig. The well will test previously discovered oil accumulations in Jurassic reservoir rocks as announced by Premier on 8 July 2009. Results from the appraisal well are expected in approximately three months.

Simon Lockett, Chief Executive Officer, commented
"The CRD-2x well and its sidetrack has provided valuable information to our overall understanding of the Cá Rống Ðo discovery. Further geoscience and engineering evaluations will now be undertaken before a decision is made on the commercial viability of Cá Rống Ðo.

The results from the well are encouraging both for further exploration in the block and also for our adjoining acreage in the Tuna PSC in Indonesia.

Whilst oil and gas shows in the Cherry well provide some encouragement, the results from the well need to be fully integrated into our analysis of the block before a decision can be made regarding Premier’s future participation in the licence."

Enquiries
Premier Oil plc 020 7730 1111
Simon Lockett

[the machine]

ppp leading the gainers so far today on nzx - up 2c or 9.52%

volume thin though

still a good start for the day and now wait for asx

M

[Paint it Black]

It's a strange market out there Machine - no one seems to recognise good news. Anyway I'll just keep buying a few to top up.

[the machine]

certainly is - finished flat in nz and down half a cent on asx - trading below cash backing.

quarterly tomorrow might help sp

M

[the machine]

Saw this a few weeks ago but took ages to find it again - page 14 of the 2011 Premier Oil financial presentation issued in March gives a very nice map of the Ca Rong Do drill and prospect. The 3D shot last year over central area is IMO the area where the 2 commitment wells for 2012 will be drilled.

Can't paste the picture here but you can easily find it on the Premier Oil website under Investor relations heading "Financial Presentations"

IMO the field will be confirmed commercial and the only thing that was holding it back was the lack of gas with is now confirmed with the CRD-2X well - this to enable exploiting the condensate.
Oil will be via FSPO and gas will be tied back to the adjoing development by Premier - 150km gas pipeline will be expensive though, but a lot cheaper than all the way to Vietnam some 450km distance.

In Vietnam they use the gas for power generation.

M

[the machine]

whats going on with PPP - today suddenly 6 trades for 323,000 shares, yet in last month the total is 16 trades for 650,000 shares - half of last months volume is early today

M

[macduffy]

May mean something or nothing at all!

Most activity in PPP takes place on the ASX where daily volume regularly exceeds 323,000 shares.

[the machine]

May mean something or nothing at all!

Most activity in PPP takes place on the ASX where daily volume regularly exceeds 323,000 shares.

now transpires it was the directors buying ahead on tuesdays update from premier

M

[troyvdh]

...dear machine I have to say that was a very bland delivery of information that i at least feel as being quite positive.And believe me (if you were to see my performance thus far in the "sharetraders comp") you may appreciate the point I am making.
....I hope that it does transpire that what you say is/was positive....anyways....

ps....GO THE CRUSADERS

[the machine]

...dear machine I have to say that was a very bland delivery of information that i at least feel as being quite positive.And believe me (if you were to see my performance thus far in the "sharetraders comp") you may appreciate the point I am making.
....I hope that it does transpire that what you say is/was positive....anyways....

ps....GO THE CRUSADERS

troyvdh, I see what You mean.

waiting for premier oil update on july 12 for next big news about the vietnam drill.

whilst I have picked ppp in several comp's, I have also invested a quarter of a million aud$ in them for the vietnam drill

I will be more excited after premier update

M

[boysy]

Would be good to see PPP being a bit more proactive in the production side of things. Fair enough throwing money into exploration but would it be a big ask to put some cash to work buying existing production seems like they are sitting on the money and dont know what to do with it.

[digger]

Would be good to see PPP being a bit more proactive in the production side of things. Fair enough throwing money into exploration but would it be a big ask to put some cash to work buying existing production seems like they are sitting on the money and dont know what to do with it.

I would say they are waiting for the outcome of the premier announcement. But does this whole area not what the Chinese are now claiming as theirs. Been speaking to an informed person from that area and he says China is claiming all the areas around each country as a big oil grab. Nothing will stand up in the world court but then China is big enought to take it anyways. On the war path here folks as Vietnam is just not going to let them have it. So the US and Vietnam on the same side . Rather strange bed fellows i would think.

[Master98]

I would say they are waiting for the outcome of the premier announcement. But does this whole area not what the Chinese are now claiming as theirs. Been speaking to an informed person from that area and he says China is claiming all the areas around each country as a big oil grab. Nothing will stand up in the world court but then China is big enought to take it anyways. On the war path here folks as Vietnam is just not going to let them have it. So the US and Vietnam on the same side . Rather strange bed fellows i would think.

China did claim whole south china sea as their core territory, from their point of view Vietnam is stealing their oil and the exploration is illegal. so I think PPP is playing a risky game.

[the machine]

I would say they are waiting for the outcome of the premier announcement. But does this whole area not what the Chinese are now claiming as theirs. Been speaking to an informed person from that area and he says China is claiming all the areas around each country as a big oil grab. Nothing will stand up in the world court but then China is big enought to take it anyways. On the war path here folks as Vietnam is just not going to let them have it. So the US and Vietnam on the same side . Rather strange bed fellows i would think.

digger, there are quite a few vietmese permits north of block 07/03, with the next permit being a producer for BP

Much further north is the area in dispute - hundreds of km.

M

[digger]

digger, there are quite a few vietmese permits north of block 07/03, with the next permit being a producer for BP

Much further north is the area in dispute - hundreds of km.

M


I too would like to believe that but China's plans are a little bigger than you outline.China does not want any international groups to try to resolve the dispute but instead wants each country seperatly to negoiate with it. The Chinese claime covers about four countries and there plan is to pick them off separtely. There will be war over this grab.

[the machine]

I too would like to believe that but China's plans are a little bigger than you outline.China does not want any international groups to try to resolve the dispute but instead wants each country seperatly to negoiate with it. The Chinese claime covers about four countries and there plan is to pick them off separtely. There will be war over this grab.

digger, block 07/03 is south east of vietnam - well away from the disputed spratleys which cover a huge area

nothing to worry about

M