PDA

View Full Version : Norwest (NWE)- AED connection



tommy
08-09-2006, 04:28 PM
Should this stock rise on the back of the recent upward swing of AED Oil?

Read this:

http://sa.iguana2.com/cache/91c969b5953d547467e10b8e56511841/ASX-NWE-333304.pdf

5th September 2006
Norwest, having an over-riding royalty of 1.25% in the Puffin AC/P22
permit advises that:
gPuffin oil field grows dramatically


In a presentation at the eGood Oilf conference in Perth today, AED Oil Ltd revealed that its estimate of the volume of oil in AED Oilfs 100 per cent owned Puffin field, in the Timor Sea, has been expanded significantly.

This comes after an extensive review of data from the 11 wells drilled to date, reinterpretation of previous seismic data and access to new seismic information.

AED Oil, which plans to start producing crude oil from the field in the first quarter of next year, is also investigating drilling a further development well to increase oil production rates at first oil.
A major new interpretation of the Puffin oil field by consultants acting for AED Oil, has resulted in a substantial upgrade to the expected Oil Initially In Place (OIIP) and the regional prospectivity, enhancing the attraction of a number of existing exploration targets, as well as identifying new leads and prospects. Revised maps prepared by RPS Group PLC, a major international oil consulting group, have incorporated information from the recent Puffin-9 and Puffin-7 wells, integrating that information with data from all previous wells. These
maps will be finalised when the reprocessed Onnia seismic data becomes available.

Based on results of recent drilling and 3D seismic survey information recently obtained, AED Oilfs estimate of oil in place within Puffin North East has risen from 13 million barrels of oil (OIIP) to in excess of 90 million barrels (OIIP).

Oil initially in place (OIIP) refers to the estimated volume of hydrocarbon liquids in situ in the reservoir. Only a proportion of OIIP can be physically and commercially recovered to surface. This proportion is the recovery factor. AED Oil is currently calculating and evaluating the recovery factor by means of reservoir simulation
and other techniques. A revised reserve statement will be released following an independent review of this work.

AED Oil has recently drilled the Puffin-7 and Puffin-9 wells which has improved the understanding of the entire field.

As a result of the new interpretations and information AEDfs initial evaluation indicated the known oil bearing structures are likely to cover a much larger area, than previously envisaged, and should contain significantly greater volumes of oil than previously estimated. The increase in OIIP within the Puffin field is expected to
result in a subsequent increase in Proved Reserves.

AED Oil is currently determining Proved Reserves, which currently stand at (P90) 10.4 million barrels of oil, which were based on the pre-drill interpretations. A significant upward revision is expected on completion of ongoing studies expected to be completed in the fourth quarter of 2006.

Oil production from Puffin field is expected to commence early in 2007 using a Floating Production Storage and Offloading (FPSO) facility. First oil production will be from Puffin North East with initial flow rates of 18,000 barrels of oil a day.

Initial production rates could increase as recent work on Puffin North East suggests that drilling of a further
development well into the reservoir could increase initial production to around 30,000 barrels a day. AED Oil
is currently undertaking a study of the costs and process to complete an additional production well in time for
first oil. The company has a drill slot available in December 2006 and has much of the completion equipment
available. In addition, the company is reviewing the need for further wells to maximise future oil recovery.h
For further information contact
Mr. Joe Salomon
Telephone: +61 8 9227 3240
Email: info@norwestenergy.com.au

mark100
08-09-2006, 04:38 PM
NWE has a market cap at current prices of $27m.

As at 30 June NWE had cash of $7.5m.

On my estimates the NPV of the Puffin royalty to NWE is approx $20m. (assuming around 35m barrels recoverable). Adding on the $7.5m cash means your getting the rest of NWE for nothing.

NWE also has a share in production at Jingemia which is around 25bopd net to NWE

Mark

tommy
08-09-2006, 05:17 PM
Thanks mark,

Damn, market is closed now... I was too slow. NWE up 36% today!

What a good week for traders, gonna celebrate tonight:D

Have a good weekend all!

cloggs
11-09-2006, 11:46 AM
Up to 15cts now. A bit of a no-brainer this one.

tricha
16-04-2008, 09:53 PM
Where has your one gone Shrewd, great balls of fire coming, oh and Puffin, its a blessing AED did not pump it at the required rate, much more value for little old NWE.

.................................................. .................................................
Borrowed of King Baz

EnCore likely to aggressively drill, appraise, flowtest, follow-up sidetrack (various), achieve commercial production at Cobra(imo).

In recent weeks and months (EnCore) has demonstrated its ability to discover massive amounts of gas (Breagh), negotiate corporate developments/asset swaps, secure rigs on short notice and follow-up leading to commercial production (read RNS).

Only a few moments ago (minutes), EnCore announced that they will be sidetracking the Barbarossa well, a process that is likely to happen a few months after the Cobra well.




QUOTE EnCore Oil says Barbarossa well to be sidetracked within gas-bearing reservoir
LONDON (Thomson Financial) - EnCore Oil Plc. said its 10 percent-owned Barbarossa well, operated by Venture Production Plc., will now be sidetracked within the Rotliegend gas-bearing reservoir.

Subject to successful testing, the well will then be completed as the field production well and the partners plan that Barbarossa will be developed as a single well subsea tieback jointly with the nearby Channon discovery.

The Barbarossa gas discovery is in the southern North Sea and 5 percent of EnCore's interest in the licence is subject to a potential buy-back by a previous owner. Barbarossa was drilled in 1982 when the well encountered the 113-foot thick gas bearing Rotliegend reservoir.

Side-tracking refers to digging a second wellbore away from the original wellbore.


The Barbarossa well is producing from the same reservoir geology (Rotliegends), except the Cobra well has at least double the reservoir thickness an in all likeliness is likely to be 400+ft.

Similar to Cobra the Barborossa well was drilled 20+ years ago . . .

Norwest has obviously been very quiet about Cobra as EnCore do not provide updates to drilling progress . . . but given the very real prospect of Cobra being a success and Puffin producing the same if not more cashflow than what we expected (due to increased POO not to mention SNP) . . . yet NWE is still trading at half of what it was 6months ago.

NWE is probably suffering from lack of PR (and admitedly a result of not having a CEO), but the underlying strength of NWE is improving rapidly and it will only take one presentation or announcement to make the faithful a bucketload of money.


In response to a few PM's, emails . . . my personal (non-investment) view for POS at Cobra is >75% for a commercial development with 100bcf+ of reserves and about 60% for 400bcf+ of reserves.

To be fair NWE has been traveling ok given the lack of buying, but with only 200m shares . . . as things pick up pace, the NWE shareprice will respond very favourably

remy
17-04-2008, 12:59 PM
starting to be pretty stable at 17 now.. i think if it drops back to 15 it would be a good time to top up.. hopefully come next announcment time we wont be seeing it drop below 20 very often..

tricha
01-10-2008, 10:48 PM
starting to be pretty stable at 17 now.. i think if it drops back to 15 it would be a good time to top up.. hopefully come next announcment time we wont be seeing it drop below 20 very often..

WELL u called this one right Shrewd, sorry for doubting u :(

Yeah, just sent King bull **** artist Baz a friendly reminder ;)

WELL, WELL, WELL this calls for depaaration ( excuse my spelling) King Baz.

U want a biiger bounce before u sel.

Forgot it.

Wer ina bear market http://www.sharescene.com/html/emoticons/grrr.gif and good news as WELL as bad news is treated with contempt.

Glad I sold at an average of 20 cents, than listen to the bullramp that keeps coming
out of your mouth. http://www.sharescene.com/html/emoticons/mad.gif

Crypto Crude
01-10-2008, 11:58 PM
Tricha,
It was very hard for me to sell NWE because I went so rampant on it (just like I am on CUE now) and it looked very good before puffin production problems came about... I think I just got lucky that mattyroo was around, and that I acted on it when production problems came about...
Things are now starting to look better for NWE with two AC/P22 wells...
NWE could perform from here...BUT im over it, not worried if it does or does not perform... Found a much better stock that im prepared to sell everything for, and that looks much better than NWE did when I got into that one...
Mackdunk picked NWE in our heads up competition at 26cents and now its 9 cents... he will lose our share picking comp because of this stock...
Hope it crashes... hahaha... anything to put a cock in his ****... I mean cork in his wine bottle... haha...
....
let the celebrations begin, Im already celebrating my new major journey and this aint even got going... roll out the red carpet...
we are going to party like it was 1969...
:cool:
.^sc

Tok3n
02-10-2008, 09:12 AM
It would take about a quarter of PPP earnings to buy NWE out right now.

macduffy
02-10-2008, 09:40 AM
It would take about a quarter of PPP earnings to buy NWE out right now.

That depends on at what price a bid would be successful.
Have you checked out the substantial holders?

;)

Brut
05-10-2008, 07:42 AM
Interesting read by Peter Strachan dated 2/10/08. A few Oil oversold companies get a mention even AED taking out NWE?


Many ASX listed oil and gas companies now trade at a huge discount to their conservatively assessed corporate valuations. As a result, there is an emerging trend to corporate action by stronger companies looking for growth. The key for many executives is how to extract that value for shareholders before they fall victim to a low-ball takeover bid.

One strategy for stocks such as Amadeus Energy or Petsec, for instance, could be to effectively put most of the company's producing assets up for sale on the professional market, achieving a value on sale with is likely to be more than twice their current market capitalisation and then give all or most of that cash back to shareholders. After all, the companies are run for the benefit of shareholders and not their management. If the companies cannot achieve a fair market value for their assets as listed entities, perhaps they should just sell them and give the cash back to its owners.

The problem with this strategy is that the price for oil and gas assets has fallen as a result of the aforementioned credit crisis, as cash strapped developers seek to offload some assets.

Last month, we saw cashed up Cooper Energy bid for larger peer company, Incremental Petroleum. Fortuitously, Cooper had cashed up ahead of a big drilling campaign on two projects in Indonesia, only to record poor results with the drill bit. Left with just over 1,000 barrels of oil per day of Cooper Basin production from about 1.4 million barrels of reserves plus over $60 million of cash, Cooper began buying Incremental stock and made a bid, in the process buying a stake in Incremental on the market, to show its intent. Market conditions look set to have conspired to defeat this bid, while a strong holding by Incremental's board and management also renders the bid unlikely to succeed, but it is a sign of things to come.

Hard working Gulf of Mexico gas and oil producer, Strike Oil, finds itself with a market capitalisation of $80 million and an expected operating cash flow of about $40 million this financial year. Strike is not alone. Many small- to medium-sized companies, including Petsec, Salinas, Carnarvon, Beach Petroleum, Australian Worldwide Exploration (AWE), Roc Oil and Tap Oil are trading with market capitalisations of about two to three times their expected 2009 financial year operating cash generation, much to the frustration of their shareholders. Moreover, stocks in this cohort are also trading at a deep discount to the underlying value of their oil and gas reserves, making them all targets for cashed up predators.

Ongoing global financial market turmoil looks set to make it almost impossible for small companies of any description to secure new equity at a reasonable cost, while debt support will become much more expensive to obtain. Those in the box seat include companies with a strong operating cash flow or piles of cash. As companies come up against funding restrictions, their stronger peers will be able to pick off juicy projects or indeed, buy whole companies at the current bargain basement levels.

Key predators might include the Tui twins, AWE and New Zealand Oil & Gas, whose coffers have been considerably enriched by the success of their Tui oilfield operations. In fact, AWE has already shown its hand after buying Arc Energy for a song. Briefcase would be surprised if AWE halts its acquisitions at this stage. The company has little to drive growth organically over the coming 24 months from its existing portfolio; and anyway, opportunities in the market present a cheaper option for the company's growth than use of the drill bit.

Instead of paying dividends or making capital returns, AED Ltd could use some of its precious cash to grow its business. Buying Norwest Energy, for instance, at about half the value of its royalty interest in the Puffin project, would make sense while offering AED some diversity of interest outside of its Puffin project area.

Carnarvon Petroleum could also end up as a tasty morsel for a predator if it does not act first to use some of its mounting cash to buy into new projects. Nexus would be a grand prize for Japanese or Chinese money, securing long-term condensate and gas or LNG projects at effectively 25 per cent of its long-term value. Nexus can now be bought for effectively $7 per barrel of oil in reserves when $30 might be a more appropriate multiple.

Up in the Philippines, both Nido Petroleum and Otto Energy are on the farm-out trail, talking with some of the world's largest and most cashed-up companies. However, potential farmin-ees may see a better way to take in interest in these projects by not paying a premium to farm-in, but instead buying the whole company. These companies may find that, by alerting big oil, they have a tiger by the tail; and since Briefcase values Otto at close to 80 cents per share, the current price of 30 cents could prove too tempting for a potential partner.

macduffy
05-10-2008, 08:52 AM
Yes, an interesting article. A lot of attractive O & G companies out there.
As far as NWE is concerned, interests associated with the company hold too many shares to let them go at 8c. Or at least, so I'm told.

;)

airedale
02-06-2020, 10:36 AM
https://stockhead.com.au/stockhead-tv/rocktalk/rocktalk-its-all-gas-no-breaks-in-the-perth-basin/?utm_medium=email&utm_campaign=Stockhead%20Morning%20Newsletter%20Tu esday%20June%202&utm_content=Stockhead%20Morning%20Newsletter%20Tue sday%20June%202+CID_0d628148cc1dad612fb4384077ee60 62&utm_source=Campaign%20Monitor&utm_term=RockTalk%20Its%20all%20gas%20no%20breaks% 20in%20the%20Perth%20Basin

An interesting link back to NWE which used to have a few followers on this forum. {including me}. It is a recent interview by Peter Strachan, of the managing director Ian Smith.