OSH-Oil search

[JBmurc]

-OSH-One to watch over the next 6 months Bargin Blue chip of the Large Oilers IMHO-SP- 3.62
-huge middle east exploration ongoing any major success should test 4.50 high
-forward P/E-16
-4c divie ex 5 March 07-Yield- 2.5%
-Makes ORG look expensive





RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006
20 February 2007


OIL SEARCH ANNOUNCES A RECORD NET PROFIT AFTER
TAX OF US$412.0 MILLION


HIGHLIGHTS
• Oil Search’s Net Profit after Tax (NAPT) for the year December 2006 was
US$412.0 million, including a net profit of US$258.4 million relating to the
sale of licence interests to AGL.
• The core Net Profit After Tax, excluding significant items, was US$207.5
million, up 4% on the 2005 result, a record for the Company in its 77 year
history.
•Based on the core Net Profit After Tax, earnings per share rose 3% to US
18.5 cents per share, whilst cashflow per share was 11% higher at US 35.6
cents per share.
• The result was achieved despite lower production, following the sale of
producing assets to AGL. 2006 oil and gas production was 10.2 million
barrels of oil equivalent (mmboe) compared to 12.2 mmboe in 2005, with
approximately 2.5 mmboe sold to AGL. Gross daily production from the PNG
oil assets rose by 5% in 2006 versus 2005, the third successive year
production has increased from these mature fields, demonstrating further
production potential and close field management.
• The Company generated total operating revenue of US$664.5 million, based
on oil sales of 9.2 million barrels (10.8 million barrels in 2005). The impact
of lower production was largely offset by a higher average oil price of
US$67.22 per barrel (up 16% on 2005).
• At the end of December 2006, the Company had cash reserves of US$477.9
million, compared to US$212.2 million at the beginning of the year. The
substantial improvement in the Company’s balance sheet reflected strong
cash flows from operations, combined with a US$379 million payment from
AGL for assets sold in early 2006. Following receipt of the AGL sale proceeds,
Oil Search paid down outstanding debt and has since remained debt free.
• The Board has approved the payment of a US four cents final dividend for the
2006 financial year. Together with the interim dividend of US four cents per
share, paid to shareholders in October 2006, the total dividend for the year is

[SEC]

quote:Originally posted by JBmurc

-OSH-One to watch over the next 6 months Bargin Blue chip of the Large Oilers IMHO-SP- 3.62
-huge middle east exploration ongoing any major success should test 4.50 high
-Low P/E- 6


Would be interested in OSH around the $3.40 mark. Good projects in the pipeline, and they've got rid of the PNG pipeline monkey off their back. But disagree on it being a bargain, and you know full well the historical 'PE of 6' is misleading and includes abnormals[}:)]. Forecast PEs are 16 for 07 and 17 for 08, not exactly cheap!

I've also got my eye on BPT, single digit PEs forecast for the next 3 years, being trashed for no obvious reason apart from nervousness about pending drill results, any thoughts there JBMurc and others?

SEC

[JBmurc]

Too right SEC the sale of licence interests to AGL made up over half of OSH EPS -Have edited P/E to suit-
-Bpt,sto,wpl,coe,arq,tap most ASX oilers IMHO look unloved by the market currently.
-Don't know alot about BPT does sound great buying if its forward P/e is low,Whats it future drilling program ,I know it reserves are mostly made up of GAS


-As for OSH's future- Oil for one is back over $60 just when alot of analyst were talking down OIL's future (OSH has 3 more yrs of current production levels 10mmboe av)
-OSH Currently has 6 wells drilling in the middle east ,with some good oil shows so far-(Don't know of any other larger ASX oiler currently drilling as much prime targets as OSH)
-Upside of OSH's increasing oil&Gas reserves will rerate well over $4 even if the P/E is currently high


----Off Fat prophets------when OSH was over $4
Oil Search's operations remain in good health. During the first quarter of 2006, the company's Papua New Guinea oil production was 1.5 percent higher than the previous quarter with average gross production of over 52,000 barrels of oil per day (bopd). Rates have subsequently increased to over 60,000 bopd.

Oil Search has proven and probable oil reserves of 111.3 million barrels and an active exploration programme underway across three countries. However, the company's gas assets add a significant additional layer of earnings potential. Gas resources currently stand at an impressive 1,056 million barrels of oil equivalent (mmboe).

The commencement of the PNG Gas Project would confirm the commercial viability of the company's gas resource. As a result, up to 370 mmboe of this total could potentially be moved into the 'reserves' category. With key aspects of Front End Engineering and Design completed, the project is moving closer to becoming a reality

[JBmurc]

from aegis

OSH enters FY07 in a strong position and with a clear strategic focus now that the PNG pipeline has been suspended. We have revised our FY07 EPS forecast down by 21% following confirmation that the production guidance for the year was lower than we had been modelling. Countering this negative impact is the exploration upside. We have increased our expectations for the 18-month drilling program recently initiated following the early success in Egypt. Also, a decision on the commercialisation of the large gas reserves is expected by mid-2007. The exploration potential and our increasingly positive view on the LNG opportunities have resulted in the target price being increased by 4% to $4.20. Given OSH has a growing revenue profile, no debt and a large cash position, it will be able to rapidly advance both exploration discoveries and the gas commercialisation opportunities.

[Crypto Crude]

http://www.stocknessmonster.com/news-item?S=OSH&E=ASX&N=519287

WOW... THIS PNG LNG IS GOING TO BE VERY BIG...
guess who is going to ride in on the coat tales of Mighty Oil Search...?
:cool:
.^sc

[Crypto Crude]

cue is set to net previously gas stranded assets of 2P 150 BCF in Kimu and Bariweka worth a billion dollars plus... through the OSH LNG development...
Ive got alot of study to do on OSH...
check out page 26 of he presentation...
keep this to yourself...
When the market wakes up to this PNG LNG, then watch out...
MOS, HZN, CUE, STO, OSH all have big leverage in this...
its all pretty long term stuff, so make sure you got short term things kicking with it...
:cool:
.^sc

[ELYOB]

yes , worth being on CUE and HZN here . MOS is third in my book . Well spotted SC .

[Crypto Crude]

you are right pointman...
They are calling this PNG LNG, a Legacy project...
:cool:
.^sc

[AMR]

Hi, what are the chances of a riot or political risk causing damage in PNG?

Got a little nervous when riots started in Thailand after I bought into CVN.

[Crypto Crude]

AMR,
Sure its not the best country in the World to do business... This will work because its such a large resource... And it will work because OSH is PNG's largest tax payer...
I also read that the PNG LNG will double GDP (for the whole country)....
The people, the government, and OSH are all better off....
OSH revenues are set to triple...
Legacy project...
Id say right now, that OSH is the best aussie large tiered oiler and its going to triple in size (with big up, over the next few years)....
:cool:
.^sc

[shasta]

AMR,
Sure its not the best country in the World to do business... This will work because its such a large resource... And it will work because OSH is PNG's largest tax payer...
I also read that the PNG LNG will double GDP (for the whole country)....
The people, the government, and OSH are all better off....
OSH revenues are set to triple...
Legacy project...
Id say right now, that OSH is the best aussie large tiered oiler and its going to triple in size (with big up, over the next few years)....
:cool:
.^sc

Shrewd

I've been reading the recent presentation from OSH & the PNG LNG project is the mother of all "elephants" :eek:

Must say it is extremely impressive & has caught my attention :cool:

[shasta]

Shrewd

I've been reading the recent presentation from OSH & the PNG LNG project is the mother of all "elephants" :eek:

Must say it is extremely impressive & has caught my attention :cool:

OSH - Sept Quarterly (Holding $US550m cash, no debt, mmmm ;))

http://www.stocknessmonster.com/news-item?S=OSH&E=ASX&N=525656

[impacman]

SP up over the last few days. Wish I had got in at $3.50 last month. Update from CitSB FYI.

from CitiSB

Oil Search Ltd (OSH.AX): PNG Trip more about politics and M&A than a look at the assets

PNG Government Plans to Sell Holding in Oil Search - If approved by Parliament on November 18th, the PNG Government will sell its 17.56% in OSH to IPIC, a subsidiary of the Abu Dhabi Government, through the issue of an exchangeable bond at $8.55/share. The ~US$1.1Billion raised will fund the Governments back in rights to 19.4% of the PNG LNG Project as well as future capex to first hydrocarbon. We maintain our trading Buy/High Risk recommendation and target price of $6.75/share.

IPIC Deal to go before Parliament - The deal will provide necessary funding and thus speed up the Governments ability to join the Project. The Governments presence in the project was considered a necessary precedent to the JV project financing, which aims to achieve funding commitments by varying Export Credit Agencies (ECA's).

Deal may remove Short-term Take-over Options - IPIC may be required to hold the bonds for an undisclosed period before being permitted to sell. We have no direct evidence, however given the sensitivities of securing the Benefits Sharing Agreement with landowners, we consider a "no sale" period prudent as far as the PNG Government, the PNG LNG JV participants, the company and its bankers are concerned.

Deal Provides a Take-out Floor Price - The bond price of $8.55/share appears to put a floor under any potential bid price. The deal mitigates the risk that the PNG Government holds onto its OSH holding to perpetuity. Further, as IPIC is a commercial entity, a bid for Oil Search above $8.55/share after an undisclosed period would likely result in the sale of IPIC's holding in OSH shares.

I-man

[shasta]

SP up over the last few days. Wish I had got in at $3.50 last month. Update from CitSB FYI.

from CitiSB

Oil Search Ltd (OSH.AX): PNG Trip more about politics and M&A than a look at the assets

PNG Government Plans to Sell Holding in Oil Search - If approved by Parliament on November 18th, the PNG Government will sell its 17.56% in OSH to IPIC, a subsidiary of the Abu Dhabi Government, through the issue of an exchangeable bond at $8.55/share. The ~US$1.1Billion raised will fund the Governments back in rights to 19.4% of the PNG LNG Project as well as future capex to first hydrocarbon. We maintain our trading Buy/High Risk recommendation and target price of $6.75/share.

IPIC Deal to go before Parliament - The deal will provide necessary funding and thus speed up the Governments ability to join the Project. The Governments presence in the project was considered a necessary precedent to the JV project financing, which aims to achieve funding commitments by varying Export Credit Agencies (ECA's).

Deal may remove Short-term Take-over Options - IPIC may be required to hold the bonds for an undisclosed period before being permitted to sell. We have no direct evidence, however given the sensitivities of securing the Benefits Sharing Agreement with landowners, we consider a "no sale" period prudent as far as the PNG Government, the PNG LNG JV participants, the company and its bankers are concerned.

Deal Provides a Take-out Floor Price - The bond price of $8.55/share appears to put a floor under any potential bid price. The deal mitigates the risk that the PNG Government holds onto its OSH holding to perpetuity. Further, as IPIC is a commercial entity, a bid for Oil Search above $8.55/share after an undisclosed period would likely result in the sale of IPIC's holding in OSH shares.

I-man

OSH - PNG secures funding for LNG Project

http://www.stocknessmonster.com/news-item?S=OSH&E=ASX&N=531186

Am looking again at OSH & AOE...;)

[impacman]

Hi Shasta. Like both of them myself atm. Hold AOE already but must admit am thinking seriously about increasing. OSH certainly seems to have a lot of good potential and the PNG LNG project is huge. My problem is trying to pick when to get in. OSH would have been great at $3.50 the other month - not sure it will get back to that level. Might just watch for a little longer and see where this volatility takes us. Happy hunting!:)

[impacman]

Was wondering if someone could help me here. I have been watching OSH and maintain longer term interest. Was talking to a broker yesterday who indicated that it was either listed in PNG (or had some PNG flag attached to it) that meant it fell under the NZ IRD FDR rules i.e. pay 5% tax etc. Looking at the ASX it appears to be an Australian company with its registered office in Australia. Is what I have been told actually the case i.e falls under the FDR rules and if so is there an easy way of identifying company's listed on the ASX that fall under FDR rules - I can't see any different flag from other companies etc. Any help and/or advice would be much appreciated.

Thanls,

Tom

[shasta]

Was wondering if someone could help me here. I have been watching OSH and maintain longer term interest. Was talking to a broker yesterday who indicated that it was either listed in PNG (or had some PNG flag attached to it) that meant it fell under the NZ IRD FDR rules i.e. pay 5% tax etc. Looking at the ASX it appears to be an Australian company with its registered office in Australia. Is what I have been told actually the case i.e falls under the FDR rules and if so is there an easy way of identifying company's listed on the ASX that fall under FDR rules - I can't see any different flag from other companies etc. Any help and/or advice would be much appreciated.

Thanls,

Tom

It's in the All Ords & ASX200, i think you'll find OSH is safe.

Though i'll double check :rolleyes:

[impacman]

Thanks heaps for that Shasta. It didn't seem right to me and with your comment I will dig a little deeper myself. If you come up with anything that would be great. Will post any finding:)s from my end. Again thanks.

Cheers,

Tom

[shasta]

Thanks heaps for that Shasta. It didn't seem right to me and with your comment I will dig a little deeper myself. If you come up with anything that would be great. Will post any finding:)s from my end. Again thanks.

Cheers,

Tom

Well 2 minutes on the OSH site & you have a wee problem :eek:

http://www.oilsearch.com/html/profile.cfm

Incorporated in PNG & on the Port Moresby exchange

Thereby not exempt to the FDR rules...

I can run you through the issues should you require

[impacman]

Thanks for that Shasta. It certainly represents a confounding variable. I should have looked for the info on their site to start with:o - a case of overlooking the obvious. I will come back to you if I have any issues coming to grips with the FDR rules/implications if that is okay. Thanks again.

[shasta]

Thanks for that Shasta. It certainly represents a confounding variable. I should have looked for the info on their site to start with:o - a case of overlooking the obvious. I will come back to you if I have any issues coming to grips with the FDR rules/implications if that is okay. Thanks again.

In some respects i see AOE as similar to OSH, but without the FDR issues.

Still both have rosy futures & outside of traditional oil!

The FDR is a bit of a beat up really, if you like a company i say buy into it & deal with the repercussions later on...

I've never minded paying tax on my gains :D

[impacman]

In some respects i see AOE as similar to OSH, but without the FDR issues.

Still both have rosy futures & outside of traditional oil!

The FDR is a bit of a beat up really, if you like a company i say buy into it & deal with the repercussions later on...

I've never minded paying tax on my gains :D


I certainly agree with you on AOE and intend increasing my existing holding - just a matter of when. My gut feel is to hold off till Feb interim reporting in Aust as that will provide some of the worst corporate results for some years I would think. Market sentiment being all about perception (as demonstrated to some extent over recent times) and the current volatility would suggest that a retreat in SP's across the board is on the cards. The flip side is oil/energy prices globally making and sustaining gains which may counter my hypothesis.

I also don't have an issue with a bit of tax on gains - it was just the thought of complexity that put me off. I will have a look and sing out if I need help. OSH are definitely of interest and I think they have a big future over the med/long term - as with AOE it's just at what price to jump in!

Cheers.

[shasta]

I certainly agree with you on AOE and intend increasing my existing holding - just a matter of when. My gut feel is to hold off till Feb interim reporting in Aust as that will provide some of the worst corporate results for some years I would think. Market sentiment being all about perception (as demonstrated to some extent over recent times) and the current volatility would suggest that a retreat in SP's across the board is on the cards. The flip side is oil/energy prices globally making and sustaining gains which may counter my hypothesis.

I also don't have an issue with a bit of tax on gains - it was just the thought of complexity that put me off. I will have a look and sing out if I need help. OSH are definitely of interest and I think they have a big future over the med/long term - as with AOE it's just at what price to jump in!

Cheers.

I'll likely have to deal with FDR down the track & have looked into before.

I'm an accountant but have been out of the CA environment a while now.

Agree about sitting on the sidelines, i may wait until April in anticipation of the March quarterlies showing signs of improvement...

Also thats the new tax year in NZ, so there may be a bit of tax selling...

I'm expecting to pick up some quality companies at bargin prices late June when the Aussie tax selling season kicks in...

AOE/OSH will be among the few i'm watching ;)

Sitting on cash in unfamilar territory

[Crypto Crude]

shasta-
I've never minded paying tax on my gains


you have to have gains to be taxed before you know what it feels like to be taxed...
I personally hate tax...
;)
.^sc

[shasta]

you have to have gains to be taxed before you know what it feels like to be taxed...
I personally hate tax...
;)
.^sc

OSH - AGL sells its PNG Asset

http://www.stocknessmonster.com/news-item?S=OSH&E=ASX&N=534442

[impacman]

OSH - AGL sells its PNG Asset

http://www.stocknessmonster.com/news-item?S=OSH&E=ASX&N=534442

Still watching. Not much to add other than that sorry. As I've mentioned I reckon 03/09 might be a good time to have a crack. Good xmas/holidays:)

[impacman]

from Aegis

OSH has entered into a farm down agreement of 10% to 20% of its interest in four PNG exploration licences with Nippon Oil Exploration Ltd (NOEX), the recent acquirer of AGL's PNG LNG interest. We view the agreement as positive for OSH as it has reduced its expenditure commitments within the licences during the current lower oil price environment. OSH and NOEX have also signed an alignment agreement where the parties will co-operate on progressing PNG gas commercialisation opportunities.

[Financially dependant]

from Aegis

OSH has entered into a farm down agreement of 10% to 20% of its interest in four PNG exploration licences with Nippon Oil Exploration Ltd (NOEX), the recent acquirer of AGL's PNG LNG interest. We view the agreement as positive for OSH as it has reduced its expenditure commitments within the licences during the current lower oil price environment. OSH and NOEX have also signed an alignment agreement where the parties will co-operate on progressing PNG gas commercialisation opportunities.

Thanks impacman, very interesting... the secret buyer or AGL interest is now exposed (after they did the deal with OSH I presume).

Good to see another major getting involved in PNG, my interest is in CUE

[impacman]

Thanks impacman, very interesting... the secret buyer or AGL interest is now exposed (after they did the deal with OSH I presume).

Good to see another major getting involved in PNG, my interest is in CUE

Yes OSH and others did not act on pre-emptive rights. NOEX would seem to be a good partner and obviously wanted a bigger piece of the action. This LNG project is attracting interest from some pretty big players. Definitely holding my interest but just not sure about when to jump in.:rolleyes:

[shasta]

Yes OSH and others did not act on pre-emptive rights. NOEX would seem to be a good partner and obviously wanted a bigger piece of the action. This LNG project is attracting interest from some pretty big players. Definitely holding my interest but just not sure about when to jump in.:rolleyes:

OSH - 4th Qtrly Report :)

http://www.stocknessmonster.com/news-item?S=OSH&E=ASX&N=537459

Well worth the read IMO

[impacman]

Thanks Shasta - pretty solid performance really. Signalled a slow down due to oil price situation. Aegis have flageed a drop in estimated EPS of 6% and 7% for FY09 and FY10 respectively due to associated production drop off. Their 12 month SP target is $5.57 (for whatever it's worth - their SP target that is:)).

Cheers

[impacman]

Full year result summary:


NAPT a record - up 70% on 2007 result to $240m USD (excluding sale of Middle East/Nth Africa (MENA) assets)

NAPT up 128% to $314m USD including MENA asset sale

Cash position $535m USD plus $435m USD line of credit

Cheers

[shasta]

Full year result summary:


NAPT a record - up 70% on 2007 result to $240m USD (excluding sale of Middle East/Nth Africa (MENA) assets)

NAPT up 128% to $314m USD including MENA asset sale

Cash position $535m USD plus $435m USD line of credit

Cheers

OSH - 31 March 2009 Quarterly

http://www.stocknessmonster.com/news-item?S=OSH&E=ASX&N=547890

Forecast 8.0-8.3 mmbo production FY09 + plenty of cash ;)

Cash of $US481m, no debt & no hedging - mean i'm looking at OSH again!

[impacman]

OSH - 31 March 2009 Quarterly

http://www.stocknessmonster.com/news-item?S=OSH&E=ASX&N=547890

Forecast 8.0-8.3 mmbo production FY09 + plenty of cash ;)

Cash of $US481m, no debt & no hedging - mean i'm looking at OSH again!

And the PG LNG project! Price under $5 at the moment for the first time in a while. Haven't realy left my radar but have been distracted by other opportunities.

[impacman]

And the PG LNG project! Price under $5 at the moment for the first time in a while. Haven't realy left my radar but have been distracted by other opportunities.

So much for staying under $5.00:rolleyes: Very much keeping an eye on this one though!

[shasta]

So much for staying under $5.00:rolleyes: Very much keeping an eye on this one though!

Charts not the best though...

Might be better off waiting for $4 on the way back up :D

http://www.directbroking.co.nz/cgi-bin/sparkle.dll/superchart?template=dblsuperchart&session=0&instrument=OSH&exchange=ASX&period=6M&adj=yes&vs=LINE&ct=CANDLE&compi=&ma1=30&ma2=90&bb=&ind=MACD&ra=2

[impacman]

Charts not the best though...

Might be better off waiting for $4 on the way back up :D

Now that sounds like a very sensible plan:)

[shasta]

Now that sounds like a very sensible plan:)

I'm slowly learning to become more patient, same with LNC.

LNC like OSH, has a big future ahead, but the coal asset sale is crucial to fund them into production, & i'll happily pay a few cents more on the way up, once the funds are confirmed.

OSH is at the mercy of the PoO & PoG - neither of which is going up sharply at present, hence the graph losing steam & volume.

When i think of Oilers/Gas plays, i can't stop thinking about the correlation with Uranium (how they both hit $US140+ & then retreated below $US50).

[impacman]

I'm slowly learning to become more patient, same with LNC.

LNC like OSH, has a big future ahead, but the coal asset sale is crucial to fund them into production, & i'll happily pay a few cents more on the way up, once the funds are confirmed.

OSH is at the mercy of the PoO & PoG - neither of which is going up sharply at present, hence the graph losing steam & volume.

When i think of Oilers/Gas plays, i can't stop thinking about the correlation with Uranium (how they both hit $US140+ & then retreated below $US50).

I need to keep reminding myself of the same thing - I am always naturally keen to take a position in something I like and worried about missing the boat. Having watched things a little bit though it would seem that we are going to have lots of volatility in oilers/gas/minerals (maybe not with the likes of BOW though) etc without a huge increase in commodity price (for a little while at least) - so yes lots of patience.

[Crypto Crude]

there really should be more interest on OSH from this site...
This giant oiler is leveraged, and that is hard to find for a company of this size....
on path to a $20 dollar stock in 5 years (with upside)......
I percieve it to be a relatively low risk path....
there wont be time delays on PNG LNG...
big times over the next 6 months, as OSH leads into development go ahead first quarter next year...
...
recommendation, buy on dips...
trading around 6 bucks...
worth 20 down the line...
:cool:
.^sc

[Oiler]

there really should be more interest on OSH from this site...
This giant oiler is leveraged, and that is hard to find for a company of this size....
on path to a $20 dollar stock in 5 years (with upside)......
I percieve it to be a relatively low risk path....
there wont be time delays on PNG LNG...
big times over the next 6 months, as OSH leads into development go ahead first quarter next year...
...
recommendation, buy on dips...
trading around 6 bucks...
worth 20 down the line...
:cool:
.^sc

Shrewdie.. I am with you on this one. :D PNG LNG is going to be a BIG one and with low sovereign risk.

[shasta]

Shrewdie.. I am with you on this one. :D PNG LNG is going to be a BIG one and with low sovereign risk.

OSH - June Quarterly Report

http://www.stocknessmonster.com/news-item?S=OSH&E=ASX&N=557623

As always a great read & to keep an eye on the PNG project ;)

[Crypto Crude]

announcements coming...
cost reductions to the PNG LNG project...
OSH running strong...
buy on dips...
:cool:
.^sc

[evilroyrule]

Hey SC, firstly thanks for the CUE/HZN heads up while back. and..have you been keeping up the articles regarding seabed mining around NZ and partic. Taranaki coast? Seems they pretty confident of ore content etc? Looking to take a small speculative position in one of the permit holders but im finding it hard to track back to ASX listed stock. any tips. maybe i should post link to the articles first? thanks

[Crypto Crude]

yes, please post the articles...
:cool:
.^sc

[evilroyrule]

ok will do tomorrow from work.

[evilroyrule]

ok will do tomorrow from work.

Hi SC,

Here some articles you might find of intertest, not limited to ore. I would prefer to paste as attachments but me and technology dont get along like we should. ill try saving as attachments and post that way. patience.

Time running out for oil field
By ROB MAETZIG - Taranaki Daily News Last updated 05:00 12/09/2009SharePrint Text Size Relevant offers
Time looks to be running out for the owners of Taranaki's Tui offshore oil field they'll soon exceed a government-imposed limit on the amount of gas allowed to be flared during production operations.

The field's petroleum production licence limits to 10 billion cubic feet the amount of gas able to be flared during its lifetime.

But after just two years of production the figure has already reached 7.5 billion cubic feet, field operator AWE New Zealand confirmed at this week's New Zealand Oil and Gas Expo in New Plymouth. "This is well beyond what we anticipated," said the company's general manager, Dennis Washer.

"It's a problem we're having to deal with, particularly in view of the potential phase two development of the field."

He confirmed that talks are continuing with Shell Todd Oil Services, the operator of the Maui gasfield 30km away, regarding piping the Tui gas to one of that field's production platforms. But he would not say any more, citing confidentiality agreements with STOS.

AWE has already copped plenty of criticism for flaring off the Tui gas. At the peak of production early last year up to 20 million cubic feet of the gas a day was being flared. The fact the Tui owners are already approaching the flaring limits dramatically underlines how successful the offshore field has been.

[evilroyrule]

bugger it. ill figure out attachments one day, this will do.

More drilling action off Taranaki
By ROB MAETZIG - Taranaki Daily News
Last updated 10:47 01/09/2009

Jack-up rig: This summer the Ensco-107 will be drilling an exploration well at Albacore-1, 80km north of Taranaki.
Relevant offers

OFFSHORE oil and gas exploration activity will step up a notch in Taranaki this summer, with two rigs working in local waters.
The biggest rig will be the semi- submersible Kan Tan IV, due off Taranaki in a few weeks to begin operating in waters southwest of the region. Another, the jack-up rig Ensco 107, will be drilling in the northern section of the Taranaki Basin off Awakino.
The first well to the west will be Hoki-1, 150 kilometres from New Plymouth, which will be spudded in October. Then the Kan Tan IV will drill at least two prospects near the existing Tui oilfield, followed by another exploration well called Tuatara-1.
The first northern offshore well will be Albacore-1, an exploration well to be drilled by the Ensco-107 in water depths of around 95 metres, 80km north of New Plymouth.
The operator will be United States company Westech which holds a 50 per cent share, with the other shareholders being NZOG with 40 per cent and Mighty River Power with 10 per cent.
The well will also be spudded in October at a total estimated cost of $20 million to $25m.
NZOG says an assessment of the central northern Taranaki Basin is that is very prospective. The first prospect to be targeted will be Albacore, which contains three separate target zones that may contain hydrocarbons.
"NZOG's internal analysis is that Albacore is more likely to contain oil than gas and, if successful, could support an offshore development similar to Tui," chief executive David Salisbury said.

[evilroyrule]

and here is the return of the jedi (part III)

Firm wants mining to begin by 2014
By RYAN EVANS - Taranaki Daily News
Last updated 05:00 11/09/2009

Seabed mining could be under way off Taranaki's coast in five years or less, according to a company currently prospecting for mineral deposits.
Trans-Tasman Resources is the first of four companies to have been issued prospecting licences both onshore and offshore around Taranaki by Crown Minerals since last March.
With its prospecting permit set to expire in March next year, executive chairman Bill Bisset said test results had left the company "very optimistic" about the resource.
Mr Bisset said the next step would be to apply for an exploration permit, allowing more in-depth work to identify specific mineral deposits and the feasibility of mining them.
All going well, the company was looking to begin mining in four to five years.
On Wednesday, John Rutherford, the director of Iron Ore New Zealand a company which, along with global mining heavyweight Rio Tinto, has an exploration permit application pending said his company was keen to move past the prospecting and exploration stage and begin mining.
Attempts by the Taranaki Daily News to contact other groups with prospecting permits around Taranaki, FMG Pacific, an offshoot of Australian mining company Fortescue, Ironsands Offshore Mining and Sericho Developments have been unsuccessful.
Trans-Tasman has taken about 165 surface and core samples from within its prospecting sites.
On the coast between Opunake to south of Wanganui, the results "suggest the existence of a potentially very large resource," according to Trans-Tasman's website.
The average concentration of ironsands over the whole area surveyed was 8.3 per cent, well above the 6 per cent required to be commercially viable.
In some places the ironsand concentration was between 15 and 40 per cent. "What we're talking about is the development of something of global proportions and the potential of it is significant," Mr Bisset said.
The company was acutely aware of concerns over seabed mining and was making every effort to be open and address them as they assessed the project's overall viability.
"A lot of what's done in the prospecting stage is not just geological work, but all the other stuff as well.
"Environmental and social issues need to be covered off, because if they're not it doesn't matter if there's seams of gold or diamonds down there, it's not going to happen," Mr Bisset said.
Those concerns had to be balanced against the potential financial benefits to the region, both in revenue and job creation.
He had encountered plenty of excitement about the opportunities, especially in employment.
Trans-Tasman was proposing to dredge sand off the ocean floor and transport it to an offshore rig station to extract, de-water, wash and store the iron ore.
The company's preferred option was to then ship it from the offshore station to an onshore steel plant in New Zealand or, alternatively, to Asian markets.
The rest of the sand and waste would be put back on the ocean floor.
The company's website says with concentrations of ironsand of 10 per cent, an area of 20km by 20km would sustain a 10-year mining operation.
Over that time it estimates five metres of sediment would be removed from the sea floor, but 4.5m of it would be returned, leaving a total impact on the sea floor of just 50cm.
In 2008, the parliamentary local government and environment committee released a report in response to a petition by protest group Kiwis Against Seabed Mining and signed by 15,113 other people calling for a government ban on seabed mining.
The committee's report concluded that a blanket ban on seabed mining was unjustified.
"Mining should be undertaken with appropriate environmental safeguards and further research into the environmental impacts of seabed mining is needed," it said.
In preparing the report, the committee heard evidence from KASM, Crown Minerals, and the Department of Conservation.
Crown Minerals admitted the use of dredge mining would have an environmental impact, including clouding of water caused by fine sediments, and spread of sediment containing toxic material.
This would affect species living in and on dredged material, but Crown Minerals suggested storms had a similar effect.
DOC told the committee the environmental impacts could be significant, with the destruction of soft-sediment habitats affecting the whole marine food-chain, including the endangered Hector's dolphin.
It also expressed concern about the impact of seismic surveying on whale populations.
Little research was available on the impact of seabed mining on deep water environments, DOC told the committee.
Ironsand industry has long history
Onshore mining of Taranaki's ironsand is not a new concept.
In fact, it's been around for more than 150 years.
In the past 18 months, two companies have been given prospecting permits to search for minerals, including iron ore onshore in and around Taranaki.
The companies are FMG Pacific, and Serdicho Developments.
The sites are in North and South Taranaki, stretching from New Plymouth to Mokau in the north and in the south from between Opunake and Hawera into Manawatu.
But efforts to harness the region's distinctive black sand began as early as 1848 when early settler John Perry attempted to smelt sand around New Plymouth.
Other attempts to develop the industry continued with varying degrees of success until the 1970s, when high demand from Japan for titanomagnetite, found in ironsand, led the Government to renew ironsand mining.
Onshore iron sand mining operations began at Waipipi, near Waverley, in 1971 and at Taharoa, near Kawhia in 1972.
Waipipi shut in 1987, having produced 15.7 million tonnes of concentrate for export.
Serdicho Developments has held an exploration permit at the old Waipipi site since 2005.
New Zealand Steel still supplies Asia with titanomagnetite from Taharoa, and its Glenbrook steel mill with iron ore mined from North Head, north of the Waikato River.

[macduffy]

Well, Bill Bissett comes with experience in mineral sands mining, being a former Executive GM of Iluka.

http://www.blacksands.org.nz/new/ttasman.htm

Personally, I think offshore mining sounds too hard from an environmental angle and too expensive. I suspect that cheaper, easier deposits will be exploited first.

[macduffy]

Proposed sale of 3.5% of PNG project is off - OSH to raise equity instead.

http://www.theaustralian.news.com.au/business/story/0,28124,26229071-5005200,00.html

[Crypto Crude]

OSH is near 6 month lows...
this will be back to 6 soon...
:cool:
.^sc

[Corporate]

OSH is near 6 month lows...
this will be back to 6 soon...
:cool:
.^sc

Especially with a SPA just announced for the final 1.2mtpa of LNG from PNG..

[Corporate]

SC - how much do you think PNG LNG will earn OSH?

At the moment with a market cap of $7billion and NPAT of between $200-300m PA is it priced with a high PE of 28.

My assumption is that PNG LNG might earn them $500m NPAT and therefore maybe a foward PE of 10..

Big money will be in adding further trains I guess.

Just my initial thoughts.

[Corporate]

SC - how much do you think PNG LNG will earn OSH?

At the moment with a market cap of $7billion and NPAT of between $200-300m PA is it priced with a high PE of 28.

My assumption is that PNG LNG might earn them $500m NPAT and therefore maybe a foward PE of 10..

Big money will be in adding further trains I guess.

Just my initial thoughts.

Hold on. NPAT from operations of only US$100m for the FY09. Therefore PE of 70 at the moment.

Is PNG LNG already factored into the price?

OSH state that PNG LNG will add 18mmboe PA to production. This would increase production by x3....how much of an impact on profit will this have?

[Crypto Crude]

OSH is truely a juggernaught to content with... I like the company as part of any diversified portfolio on any class...
a $20 company as a sure long term bet...the development of PNG LNG is roughly 80% complete on a leading world staged project set to expand and front run south east asia for decades......
OSH had a wonderful year and secured permit PPL277 off NGE as seen as a long term driver for OSH and PNG LNG as a project... the permit includes the most prospective hydro's in the entire country

Over the years I have been involved in numerous acerage holdings and PPL277 is most prospective for riches...
:cool:
.^sc

[Crypto Crude]

Oil search has grown into a superb investment long term $20 key drivers pnglng... only the surface has been touched in PNG, and this decade oil search goes corporate commercial...
:cool:
.^sc

[Huang Chung]

Oil search has grown into a superb investment long term $20 key drivers pnglng... only the surface has been touched in PNG, and this decade oil search goes corporate commercial...
:cool:
.^sc

Their Taza wells in Iraq look to be going great guns as well.

[Skol]

OSH got a mention in yesterdays Barron's, recommended, along with AMP, Perpetual, Origin, Oz Minerals and Santos, in a story about Aussie stocks.

[zigzag]

Their Taza wells in Iraq look to be going great guns as well.

I hope your talk of "great guns" doesn't become more literal than you intended. Currently have a small holding, along with OEL and NZO.

[Entrep]

Anyone looking at this currently obviously wrt oil exposure?