BRU-Buru Energy more cash than Mrktcap >>

[JBmurc]

Market cap-28mill
cash-58mill

they make more in interest than some jnr oilers make in revenues....

Safe investment while their cash is more than market cap ......


Latest Qtr announcement

Financial
Appendix 5B to this report contains the cash flow statement for the quarter with the key highlights being:-
• Blina and Sundown oil fields produced a cash operating surplus of $374,173 for the quarter;
• Interest income of $500,087 was received on Buru’s unescrowed cash reserves, which were $58.3
million at 30 June 2009;
• Other receipts and sundry income of $188,415, primarily earned by Buru dry hiring its Fairway Rig to
Australian Worldwide Exploration Limited, and diesel fuel tax credits;
• Net exploration expenditure of $381,857 included ongoing technical work, permit management and
preparation for the 2009 seismic surveys, offset by cost recoveries from joint ventures of $310,000;
• Administration and other operating costs of $436,728;
• A net cash surplus of $185,121 (before exchange rate adjustments) was generated for the quarter.
At the end of the quarter the Company had net cash reserves of over $58.3 million available for exploration,
development and investment, and has a capital structure that provides significant upside potential for
shareholders from even a modest commercial oil or gas discovery.


Managing Director’s Comments
“Buru is looking forward to receiving the data from the first ever 3D seismic data acquired in the
Canning Basin and analysing this data over the remainder of the calendar year before Buru looks to drill
on these and other prospects in the 2010 dry season.
We are also pleased to have been able to involve the local traditional owners in the naming of the
Bunda 3D seismic survey and look forward to working with these communities in the future.
We are now at an advanced stage in our analysis of the Canning Basin from a technical perspective
and expect to be able to provide shareholders and other stakeholders with updates on this work as it
reaches its conclusion. As part of this work Buru will systematically match its exploration commitments
and resource capabilities with the exploration of the most prospective regions of the Basin.
We look forward to initiating an active period of exploration in the Canning Basin commencing with the
acquisition of the Bunda 3D seismic data in August 2009.”

[macduffy]

I don't know about "safe investment".

BRU was formed from the AWE takeover of ARQ to "prove" the Canning basin. The big cash balance is pretty well committed to that, $6m earmarked for the next quarter alone.
It's a huge area but whether BRU will ever find worthwhile oil is highly debateable.

Disc: Hold a few from the ARQ takeover distribution.

[JBmurc]

I don't know about "safe investment".

BRU was formed from the AWE takeover of ARQ to "prove" the Canning basin. The big cash balance is pretty well committed to that, $6m earmarked for the next quarter alone.
It's a huge area but whether BRU will ever find worthwhile oil is highly debateable.

Disc: Hold a few from the ARQ takeover distribution.

well time will tell ever oiler has to spend the cash if they want to grow.. BRU could well find a massive oil discovery in the untap canning basin...very few have looked so far

[drillfix]

Having a look at some of the pics on their website, it appears they should be drilling for Iron Ore or copper or something, as its like the rocky desert over there.

Like the cashed up status though ;)

[JBmurc]

“Buru is looking forward to receiving the data from the first ever 3D seismic data acquired in the
Canning Basin and analysing this data over the remainder of the calendar year before Buru looks to drill
on these and other prospects in the 2010 dry season.
We are also pleased to have been able to involve the local traditional owners in the naming of the
Bunda 3D seismic survey and look forward to working with these communities in the future.
We are now at an advanced stage in our analysis of the Canning Basin from a technical perspective
and expect to be able to provide shareholders and other stakeholders with updates on this work as it
reaches its conclusion. As part of this work Buru will systematically match its exploration commitments
and resource capabilities with the exploration of the most prospective regions of the Basin.
We look forward to initiating an active period of exploration in the Canning Basin commencing with the
acquisition of the Bunda 3D seismic data in August 2009.”

[soulman]

I am a little impatient JB. I got them about a month ago.

Just got a feeling the buyout offer for BRU that was abandoned in June will be forthcoming again. So, will keep holding as nothing in the ASX is cheap anymore. Daytrader are back into the sharemarket leaps and bounds and the market is a gambling arena again.

[JBmurc]

I am a little impatient JB. I got them about a month ago.

Just got a feeling the buyout offer for BRU that was abandoned in June will be forthcoming again. So, will keep holding as nothing in the ASX is cheap anymore. Daytrader are back into the sharemarket leaps and bounds and the market is a gambling arena again.

yeah could well happen again eitherway BRU imho could well surprise a few S/P wise once they start drilling again esp if the target is a good enough size to get good market attention

Don't know about nothing on the ASX cheap anymore checkout-CFE,CUE,TRY,STX etc

[JBmurc]

Well wish i put my money where my mouth was on BRU from easy buying sub 20c to now 28.5c with drilling hype no-doult to push 30c-40c or higher on any success be some happy holders of late I know me oldman is happy he got a few

[denpal]

I got into NSE today. They hold 10% of BRU and also have Colorado gas plays with the first hole striking gas today and a big funded drill programme H1 2010.

NSE and BRU each hold extensive areas in the Canning Basin and are JV partners in EP417.

[COLIN]

Buru jumped nearly 40% today, spurred by the encouraging contents of the Operational Update released early in trading. Bought into this a few weeks ago and had been starting to wonder why I was still holding but now I know!

Looks like the rest of you may have given up - apart from JB's Dad! What particularly encouraged me to hold on was the continued depth of the buying interest v-a-v selling, plus the Mitsubishi involvement.

[COLIN]

52% up today. Now thats what JB's Dad and I call real stimulation! In fact, so stimulating that I have decided to take my profit (missed the peak, unfortunately) and let things cool off a bit.

Future looks bright but there are still a lot of uncertainties along the way. Time may prove that I have acted prematurely, but I am prepared to live with that.

Sorry, JB, that you have missed out on this little bit of action, but Dad might shout you sometime!

[COLIN]

Yes I did sell too early, as it turned out, but happy to bank a 75% gain (since July purchase). "Loss" has been somewhat mitigated by the fact that I immediately invested part proceeds in NSE, which is running strongly.

[JBmurc]

52% up today. Now thats what JB's Dad and I call real stimulation! In fact, so stimulating that I have decided to take my profit (missed the peak, unfortunately) and let things cool off a bit.

Future looks bright but there are still a lot of uncertainties along the way. Time may prove that I have acted prematurely, but I am prepared to live with that.

Sorry, JB, that you have missed out on this little bit of action, but Dad might shout you sometime!

No sadly he's worse than me an took a 30-40% profit can't wait to tell him the SP has just taken off

[hal]

A couple of very good announcements out today.

They seem to be building value all the time.

[soulman]

You still on this Hal? All time high close today at $1.13. Just the weight of the momentum.

Sadly, I missed the opps, just the one 87 cents to 92 cents trade in the midst of all this.

[denpal]

BRU has been a multibagger since 2010.

[hal]

You still on this Hal? All time high close today at $1.13. Just the weight of the momentum.

Sadly, I missed the opps, just the one 87 cents to 92 cents trade in the midst of all this.

Yes

They have another announcement out today regarding Ungani 2 which looks like another oil find in the same field as Ungani 1.

It is looking very promising but we now have to wait another 18 days for extensive testing.

[soulman]

Another week, another BRU uprising. Next week, gut feeling, I will be loading up on NSE, a 10% holder of BRU.

[hal]

Another week, another BRU uprising. Next week, gut feeling, I will be loading up on NSE, a 10% holder of BRU.

Soulman

It is because Ungani 2 looks very promising & Mitsubishi also committed this week to injecting cash for the unconventional gas program. This news made the papers yesterday.


Ungani 2 may be quite a bit bigger than expected as it was shallower than Ungani 1 and therefore a bigger overall oil column . They are doing extensive tests and have been trying to take cores over the last period for Ungani 2.

The 5 metre core they did take had oil oozing out of the vugs(holes) in the rock according to the latest drilling report.
announcement is at www.buruenergy.com.au/getfile/578.pdf

They will be putting both Ungani 1 & 2 on extensive production testing.

I still think the gas and liquids wells(Valhalla,Yulleroo etc.) are where the big money is but these oil finds certainly look nice.

This is all just my opinion but they are putting out weekly drilling reports and have had some interesting presentations from the CEO.

www.buruenergy.com.au

NSE looks interesting as well but i think they have sold some Buru for funds. Buru I think also owns some of NSE.

Good luck

[soulman]

Thanks Hal for the input on BRU. You are definitely a happy holder of BRU, a coy that have gone nearly 3 fold this year. I can't think of better performance other than NST.

Yeah, I think both coy have a stake in each other and NSE sold some of their holding for cash in the 60 to 70 cents range, so they miss opps that exit in hindsight.

NSE has just completed their capital raising at 30 cents a piece and that's the reason their SP has stalled in the last month. A decent shortfall in the takeup of the SPP as well.

With the market as it stands, I think a coy that have raised capital will be better off than a coy looked to cap raise in the next 6 to 12 months.

[hal]

Thanks Hal for the input on BRU. You are definitely a happy holder of BRU, a coy that have gone nearly 3 fold this year. I can't think of better performance other than NST.

Yeah, I think both coy have a stake in each other and NSE sold some of their holding for cash in the 60 to 70 cents range, so they miss opps that exit in hindsight.

NSE has just completed their capital raising at 30 cents a piece and that's the reason their SP has stalled in the last month. A decent shortfall in the takeup of the SPP as well.

With the market as it stands, I think a coy that have raised capital will be better off than a coy looked to cap raise in the next 6 to 12 months.

I agree. Buru had a raising about 6 months ago at .65 cents which was criticised at the time but they were approached and the money was taken for the reasons you stated.

Hopefully they both have a good future and I am very happy the way things are heading. It is wet season up there in the Canning Basin but at the AGM Buru were talking about preparing sites so they could drill through the wet. It might be really hard work but I guess we will have to wait and see.

I think the oil discovery was a real bonus which should provide really good income but there should be lot of excitement ahead all going well.

[Crypto Crude]

wow Soulman,
thanks for the tip off on NSE,
totally missed my radar, and just had a quick squizz.
very interesting,
strong shale footprint,
and with the conoco connection, BRU...
and US interests, cant go too wrong one would think...

topped up some more NWE during the week at 3cents...

:cool:
.^sc

[The Big Ease]

we seem to have two threads running concurrently.
http://www.sharetrader.co.nz/showthread.php?8609-Buru-Energy-Canning-Superbasin&highlight=NSE

NSE looks a tantalising prospect also Shrewdy. Some GREAT opportunities in Shale right now.

[The Big Ease]

http://hotcopper.com.au/announcements.asp?id=387558

Interesting interview.
When I compare this stock to SXY, I really can't understand why SXY is worth more than twice as much.

[bermuda]

http://hotcopper.com.au/announcements.asp?id=387558

Interesting interview.
When I compare this stock to SXY, I really can't understand why SXY is worth more than twice as much.

TBE,
Probably because SXY has considerable CSG in conjunction with BG, excellent hot moist shales and an oil book worth 700,000 barrels per annum, and climbing. Plus SXY is a lot nearer pipeline infrastructure and is a lot more mature..... Hey, nothing wrong with BRU. Wish I had some.

[The Big Ease]

Bermuda, Im sure you know all about the 2011 achievements of BRU. I just read that interview and it was wet gas in this, wet gas in that, major oil column..blah blahh...yes, you're quite right in that SXY are going to be producing great numbers of oil this year and have good shale acreage. But the Canning is the most prospective basin in Australia according to the EIA with the most risked GIP. Nearly double that of the entire cooper and BRU owns half of it. BRU also have a major international farmed in for 50m in 2012 on their shale.

Anyhow, this is not a stock war. I don't own either having missed the run in SXY and only recently discovered BRU. I do believe it is a great looking stock. At the moment I'd probably be leaning towards NSE in the canning, only because it is about 1/5th the price for a similar acreage position there. But if BRU showed some price weakness I'd be all over it.

[bermuda]

TBE,
BRU is sure looking good. Agree this is not a stock war . Thanks for your comments which are very valid.

In terms of share price appreciation
BRU has climbed from 30 cents to 126 cents in the last 14 months. ( 420% )
SXY has climbed from 30 cents to 80 cents in the last 14 months .( 266% )

So in terms of stock price appreciation SXY is still playing catch up compared to BRU. ( but in terms of Market cap I agree SXY is more than double as you correctly point out ) Imho it will catch up in a hurry when SXY announces a Major partner such as BRU has with Mitsubishi. BRU leapt from 30 to 80 cents upon the Mitsubishi news back in late 2010.

According to the experts there are a lot of Majors looking at the Cooper. Time will tell.

Thanks for your input. These shales are setting Australia alight.
Hold SXY .

[soulman]

BRU seems to break records and I got a lot of action with NSE today, buying in at the low of 33.5 yesterday and today again bought in at 33.5. Sold a few at 36 but still got some for any potential surge tomorrow.

Sadly, I have no BRU action.

[Rabbi]

BRU seems to break records and I got a lot of action with NSE today, buying in at the low of 33.5 yesterday and today again bought in at 33.5. Sold a few at 36 but still got some for any potential surge tomorrow.

Sadly, I have no BRU action.

Valhalla drilling report ticks all the right boxes with what appears to be very strong gas shows. Hopefully wire line logging will confirm. This could indicate thatValhalla field could be a huge structure, and accordingly SP today has surged.:)

Good for NSE with their 10m shares in BRU.:cool:

Disc. Hold NSE and BRU

[soulman]

Well done Rabbi. You are in for the long haul I suspect and it seems to work out very nicely for BRU and NSE. Are these the only 2 stock you hold?

Sold my NSE for 39 cents today.

[The Big Ease]

sm, you looking to trade in and out of NSE or don't you rate it much?

[soulman]

sm, you looking to trade in and out of NSE or don't you rate it much?

Definitely I do rate it TBE. I come from a long-termer perspective to short term. Being short-term in NSE has been fantastic for me as I do trade multiple holdings at any time (sometimes up to 4 times).

That strategy can be costly when it turned against you.

As for NSE, I see fluctuation for double dip, bottom pickings and surging breakouts. As I sold at 39, I have the ammunition to get back on board if I see momentum is continuing at a lower price.

All about preserving capital and taking regular profits.

BRU has been a fav of mine about 2 years back. I can still remember buying them for 18 cents. Seems to be a great long term holding. Just checking the records....Sept 2009. That's nearly 10 fold in 2 and a half years. One that got away. Will NSE repeat the BRU dynasty.....?

[upside_umop]

i think you'll find that NSE already has repeated soulman - 3 cents to 39 cents!
both these stocks have amazing potential even from here....i've finally woken up to the fact that they aren't going to pull back and have gone in to get some nse.
i think bru could ultimately be a $10 maybe even $20 stock...sound crazy? probably, but the acerage they have is massive.
it appears the two really hot basins in australia shale are the cooper and canning. perth is starting to heat up, but on the map it's just a little too small and doesn't seem to be attracting the same attention? still, have nwe.

[soulman]

Yeah...a bit gutted Upside. Yesterday just before closing nearly bought back at 37 cents. You are a long-termer Upside?

BRU and NSE having another field day.

[Rabbi]

Well done Rabbi. You are in for the long haul I suspect and it seems to work out very nicely for BRU and NSE. Are these the only 2 stock you hold?

Sold my NSE for 39 cents today.

SM I'm pretty sure NSE is rising on BRU's coattails so your strategy is sound. Only just bought into NSE on Monday at .34 so might have bought in the nick of time. BRU have, what appears to me, a more aggressive and active exploration program than NSE. From their latest presentation NSE have a more conservative approach, probably dictated by their partner Conoco, who might be in no hurry as they don't need the money, but are happy to buy into what look like massive shale permits.
In short, any BRU success will rub off on NSE and that is what is happening at the moment.
Later on in the year-hopefully quarter 2-when Conoco drill the first shale well, should be the catalyst for NSE re-ratingt, although I understand some institutions are already considering investing in NSE for exposure to the Shale gas sector. I agree that NSE is a stock which could be "actively managed" by trading in and out but I'll hang in for the medium term.

Disc: NSE BRU BPT SXY OEL BUL BCC

[soulman]

Rabbi, NSE in hindsight has been easy to trade in and out. But as we have seen in PIR, GOR and MTE, along with your other holdings like BPT and SXY, things can run really fast and LT seems the best for those runners.

[upside_umop]

Unfortunately I haven't been a long termer in this one soulman. I think if I had been, I wouldn't be working....
Rabbi, looks like you've done very well!

[soulman]

Another record for BRU and a new record for NSE.

Bought a bunch of NSE at 39 Fri and some partially filled for 38.5 at the closed

I am amazed at all the gas stocks at the minute. BPT, DLS, CUE, HZN, COE, BRU, NSE, NWE, WCL.

[The Big Ease]

I've abandoned the NSE on the back of BRU theory.
Gas is going up everywhere and NSE is rising faster than BRU lately (it has plenty of catching up to do!).

Even hopeless ICN (icon) rose to 25 cents.

We're cooking with it...

[Corporate]

We're cooking with it...

Hopefully ....wet gas!

[Rabbi]

Drilling report on Valhalla looks promising, nevertheless I have a feeling we are in for a significant retrace due to profit taking. This stock has had a stellar run but news is needed on Ungani extended production test. There is still some uncertainty out there and we need to know if we have found a gusher. $2.00 was definitely the resistance point and now it looks like the sellers have taken over.