Buru Energy - Canning Superbasin

[hal]

There is a very nice Corporate presentation today.

Lots going on with oil/gas/liquids.

http://www.buruenergy.com.au/getfile/557.pdf

[Rabbi]

There is a very nice Corporate presentation today.

Lots going on with oil/gas/liquids.

http://www.buruenergy.com.au/getfile/557.pdf

BRU is a favored stock among analysts and is tipped to deliver strong growth.
They have large targets although any gas finds may take years to commercialize.
Well worth doing a bit of research on this one.

[hal]

BRU is a favored stock among analysts and is tipped to deliver strong growth.
They have large targets although any gas finds may take years to commercialize.
Well worth doing a bit of research on this one.

They are now in a Trading halt until they release an announcement about wireline logging at their Ungani 2 well.

It did appear from announcements that the well was bigger than first thought so it will be interesting to see the results.

[bermuda]

They are now in a Trading halt until they release an announcement about wireline logging at their Ungani 2 well.

It did appear from announcements that the well was bigger than first thought so it will be interesting to see the results.

So Hal, does this mean I have to get an EPA approval on NWE to beat you in the comp? Suppose it does. You have a winner with BRU. Congrats. A guy I know pretty well tipped me off on this one but you cant have everything. Well done. Could be pretty big. There are some pretty big oil flows coming out. ( let alone the gas potential )

[hal]

So Hal, does this mean I have to get an EPA approval on NWE to beat you in the comp? Suppose it does. You have a winner with BRU. Congrats. A guy I know pretty well tipped me off on this one but you cant have everything. Well done. Could be pretty big. There are some pretty big oil flows coming out. ( let alone the gas potential )

Bermuda

Thanks

I have Nwe as well and I hope they get the approval soon as it looks good.

I think with Buru this is just the start as the unconventional gas/liquids is where the long term future lies. However if they can have some oil finds along the way like Ungani it will certainly pay some bills.

At the AGM Eric was saying that there could be quite a few of these oil pools around on their leases but until they drill nothing is certain. They drilled Paradise 1 last year and spent ages trying to prove up an oil find there but the well was hard to complete and they ran out of time. They had oil shows there but just couldn't prove it before the wet season set in. That well is in an area that gets very boggy in the wet season and gear would have been stuck there for months if they didn't get out. They were meant to be working on Paradise again this season but it hasn't happened yet and the wet season is due to start again.

The Yulleroo and Valhalla discoveries also had oil zones but the big picture was gas and liquids which could be very large.

Good luck

[Corporate]

Not to cross promote. But has anyone had a decent look at NSE who have permits near BRU and also 15m shares in BRU...?

[Corporate]

Couldn't ignore NSE after reading a years worth of annoucements last night.

Market cap of $88m
Cash $28m
BRU shares $20m
EV $40m

Free carried by Conoco Phillips for $109m on the Goldwyer permits. Massive shale gas potential with liquids.

[gazprom1]

BRU ann was out this morning....pretty positive. Shares up 7.7% today. Talking about 20mboe recoverable.

Gazprom

[Corporate]

BRU ann was out this morning....pretty positive. Shares up 7.7% today. Talking about 20mboe recoverable.

Gazprom

Very good annoucement. Not often 20mboe is found onshore australia these days.

Bodes well for NSE's permits which are closeby.

[hal]

Very good annoucement. Not often 20mboe is found onshore australia these days.

Bodes well for NSE's permits which are closeby.

Hopefully it is only the start as at the AGM the CEO was saying there could be multiple look alike fields to this although of course this could only be from what they have seen in the 2d seismics and they won't know until they do 3d seismics and drill.

They have also increased the size of Ungani1 as they only thought it was possibly only 12 metres & now it is over 50 metres. Ungani 2 is 400 or so metres away and it has over 50 metres as well.

They are also drilling deeper to look at a deeper oil pool which they saw in Ungani1. I believe this is the reason we don't have flow rates. They decided to keep going to test the extra layer of oil.

Could be plenty of good announcements to follow with the deeper oil pool drilling now & production testing in early January for Ungani1 & 2

It should be a very exciting period over the next year for Buru as they also have Yulleroo & Valhalla follow up wells among other things.

The way it is going they might need extra rigs up there.

[ELYOB]

They have good reason to be conservative atm . The Canning Super Basin is elephant country , but they havent seen the elephants yet , maybe the baby elephant . More drilling is required to search elephants . They should have 4 high powered rigs , instead of the one . That would do justice .

[hal]

They have good reason to be conservative atm . The Canning Super Basin is elephant country , but they havent seen the elephants yet , maybe the baby elephant . More drilling is required to search elephants . They should have 4 high powered rigs , instead of the one . That would do justice .

I think they will get more rigs but that is up to them.

They have had a good year though.

Yulleroo gas with liquids
Valhalla big gas with liquids
Pictor gas and now they think oil as well
Ungani1 & 2 oil in good quantities.
Many look alikes to Ungani which could be good money spinners.
Acacia which they think is in then Goldwyer oil zone

I guess we will have to wait and see what happens but it seems to have been a transformational year to me.

Ungani at 20 million barrels of oil is worth about 90 cents to Buru according to an analyst and it is possible it could be quite a bit bigger.

This would mean you are getting all the other prospects in their huge acreage for 40 cents.

My worry is they will get taken over too soon as within a few years their cashflow could be very impressive.

Do your own research at www.buruenergy.com.au

[ELYOB]

My research indicates that even Yulleroo has another 2-3 jumbo look a likes . This is the unseen elephants I talk!I spoke to a guy who did geo work for WA Govt for 10 years in the Canning . He says the petro systems are gigantic , so the problem that it is located over huge area . It was to take drilling here and there to uncover the elephant and then sort it out by intensive exploration . So with only 1 rig of size , the campaign is going to be slow , but achieving elephants on way.

[hal]

I don't know whether anybody was watching Buru this week but what a sensational finish to the week it had.

It dropped to $1.75 on Friday with the traders getting panicked out but rebounded beautifully on strong volume. I was watching up till close and there was strong demand and in my opinion this should continue next week.

The reasons for the rebound in my opinion were that :
Valhalla North 1 was a success proving the resource is basin centred. They had about 1300 metres of hydrocarbons and this is the third well with the same results. The upgrade on the resource could be very good.

ASX 300 inclusion - It appeared funds were buying yesterday.

BBY brokers upgraded Buru from $1.78 to $5.00

The way I see it is that when Valhalla is proved Buru will have enough gas to start building the gas pipeline to Port Hedland and start supplying Alcoa and possibly other customers. This will release cash from Escrow which is advance payment for gas from Alcoa. Obviously this is all going to take a while but the future should be looking rosy. They will also have a very substantial liquids supply out of the gas which will provide big income.

Aside from that Buru have a very good oil discovery Ungani 1 & 2 which will start production testing soon. This accumulation apparently is big enough to build a pipeline to the coast for export shipping(hopefully down to fremantle).

Another point which may have been missed is that Buru have been granted 'new acreage' next to Ungani and also next to Valhalla.

They now have "14 million acres" of one the best basins in the world. The value of this acreage is going to be enormous.


To summarise

I believe they have momentum with Friday's trading and it was very strong buying & volume.

They seemed to have proved up a whole basin(1300 metres depth of hydrocarbons)

They are in the ASX 300 soon

Upgraded to $5.00 by the only broker who has been covering them(as far as I know)



Any comments greatly appreciated positive or negative

[The Big Ease]

a great story unfolding hal.
I think BRU and NSE are unnecessarily compared to one another with people thinking they have to choose a good/bad one of the two.
They are both bloody brilliant stocks to own IMO.

BRU has plenty of these types of prospects within their acreage. Possibly 100 or more. IMagine that!
One thing is for sure, this whole basin is awash with hydrocarbons. The market is very slow to wake up to this.

I think 5 dollars is a very reasonable appreciation in SP for BRU. That would make it a 1.1bill company.
Acreage and prospects justify this imo and it hasn't yet fully defined this oil find.

SXY is a company which is similar in profile, though it doesn't have as much acreage.
I think BRU can expect a similar valuation in 6 months.


I honestly thought the fund managers would be far more diligent and professional in their approach to finding these sorts of opportunities.
They're very slow to wake up to these things.

[hal]

a great story unfolding hal.
I think BRU and NSE are unnecessarily compared to one another with people thinking they have to choose a good/bad one of the two.
They are both bloody brilliant stocks to own IMO.

BRU has plenty of these types of prospects within their acreage. Possibly 100 or more. IMagine that!
One thing is for sure, this whole basin is awash with hydrocarbons. The market is very slow to wake up to this.

I think 5 dollars is a very reasonable appreciation in SP for BRU. That would make it a 1.1bill company.
Acreage and prospects justify this imo and it hasn't yet fully defined this oil find.

SXY is a company which is similar in profile, though it doesn't have as much acreage.
I think BRU can expect a similar valuation in 6 months.


I honestly thought the fund managers would be far more diligent and professional in their approach to finding these sorts of opportunities.
They're very slow to wake up to these things.

Quite unbelievable actually. It takes going into the ASX 300 for them to start looking whereas they should already know them really well. I think this leads to undervaluations and everything getting taken over too cheap.

It will be intersting to see what the resource for Valhalla is when they are able to do it. I think it could be an ELEPHANT.

[The Big Ease]

it would be like waiting until after a player was drafted to see if he had potential.
Bloody crazy.

The other thing is our aussie capital markets arent very deep.
So many opportunities for not enough capital. Nobody needs to take risks, so thats where our opportunity lies.
Do your research and pick a few. Eventually you'll strike a few.


Anyhow, getting off topic.
I really think Bru is a winner. Very aggressive and savvy too. PLenty of acreage and lots of very rich prospects. A big company in the making IMO.
I have picked two stocks to ride (NSE and NWE) and have a trade on WCL.
I probably should have put the WCL money on BRU. Ahh well.

Good luck with this hal. I'll keep a close eye on this as its success will mean good things for NSE.

[hal]

I thought I would give a link which shows how big the new acreage is and how important it is.

http://www.buruenergy.com.au/getfile/634.pdf

Obviously the acreage is very close to their discoveries in Valhalla & Ungani. They will also own 100% of this newly granted acreage from what i have heard.

[Rabbi]

I nearly pulled the ripcord on this last week when I was convinced it had come to the end of it's run. This is a company with an aggressive program and a great farmin partner in Mitsubishi. Buying frenzy stampeded over the sellers today and I wouldn't care to pick the next resistance point.
Broker valuation out last week of $5.00 :)

[The Big Ease]

It's a ripper. Oh to have more cash to invest....

[soulman]

WTF TBE. BRU up a whopper 40 cents or 20%. A ripper alright.

[The Big Ease]

I know SM.
There is something special about watching something grow into a very big company. I suspect this will happen to BRU and I hope, NSE.
I was late to the CSG stories like SHG, QGC and PES. I had no idea about FMG. I'm glad I got onto one half of this Basin. Whether it's the batman or robin, we'll have to see. Can't really lose.

I suspect BRU will become a multi-billion dollar company in 12-24 months. It is so aggressive this year in a monster of a Basin. Multiples of the Cooper for shale. Who knows what the oil is like?!!

If you do hold, count yourself lucky and don't take to selling in a hurry just IMO.

[soulman]

No BRU for me TBE. But I got a few NSE.

[upside_umop]

I agree TBE. This could be just massive....however, it already is a $550m company!
Could eventually hit 15 to 20 a share?

[The Big Ease]

BRU have stated there could be many unganis in their permits.
Anatol on HC has pretty much said the same through his research.
Then, there is the shale gas potential on the borderline of the NSE permits. They actually have bits and pieces of the really good stuff. It's just that NSE pretty much hogs the sweet spot and BRU has some northern edges of the best wet/shale gas sections. Who knows, maybe it extends much further into their permits than we realise. Afterall, not that much drilling has taken place in the basin.

BRU's permits contain more oil. I really think 15-20 is a possibility some time into the future. It has that kind of potential, even from here.

[hal]

BRU have stated there could be many unganis in their permits.
Anatol on HC has pretty much said the same through his research.
Then, there is the shale gas potential on the borderline of the NSE permits. They actually have bits and pieces of the really good stuff. It's just that NSE pretty much hogs the sweet spot and BRU has some northern edges of the best wet/shale gas sections. Who knows, maybe it extends much further into their permits than we realise. Afterall, not that much drilling has taken place in the basin.

BRU's permits contain more oil. I really think 15-20 is a possibility some time into the future. It has that kind of potential, even from here.

They have had 3 wells in Valhalla(well spaced) that have 1300 metres or so of hydrocarbons so I think that is going to be pretty hard to beat.

There is a good chance it is going to be multi tcf with liquids as well. Their plan is to produce 200tj's of gas a day but by producing this gas they should have a byproduct of liquids which they think will be 10000 barrels a day. Look for the corporate presentation here http://www.buruenergy.com.au/getfile/486.pdf for the information

As well as that they have oil at Ungani with lookalikes nearby. They also have Pictor which is a discovery and Acacia which they think is oil.

That is why they are the leaders in the Canning Basin and why they will remain so in my opinion.

They have 14 million acres

[hal]

There is a new presentation out today.

300 million barrels of oil at Ungani 10 % risked

Multi tcf at Valhalla

Check it out

[upside_umop]

I interpreted that as 300m barrels at Ungani look a like structures that are within the permit?

Vahalla looks impressive...

[hal]

I interpreted that as 300m barrels at Ungani look a like structures that are within the permit?

Vahalla looks impressive...

I think they said the Ungani area or similar. It is 10% risked which i take to mean 10% of what could be there so possibly 300 million barrels is very conservative.

Is that right?

[The Big Ease]

There is a new presentation out today.

300 million barrels of oil at Ungani 10 % risked

Multi tcf at Valhalla

Check it out

It is brilliant.
Well done hal.
BRU is bringing the attention to the Canning by kicking these goals.
I hope NSE can do as well in 3-4 months.

[upside_umop]

I think they said the Ungani area or similar. It is 10% risked which i take to mean 10% of what could be there so possibly 300 million barrels is very conservative.

Is that right?

Yeah, that's how I interpret it. They're saying a strike rate of 1 in 10 of what they have mapped could be the size or a little bigger than Ungani.

TBE, I don't think many people know it, but NSE are targetting both conventional and unconventional in this campaign....just imagine if they hit. Will be good for BRU too.

BRU's goal was to 'crack the canning'....looks like they are doing that very well.

[ELYOB]

BRU is mind boggling . Stockanalysis says today that if everything comes through in the fullness of time , this is worth somewhere near $40 a share . Refer 07/03/12 Issue by Peter Strachan .

I agree some what to what he makes of all this . BUT , I have done a detail study on Yulleroo and find he has not! Yulleroo has several look-a-like elephant structures* next door which get no mention . Yulleroo may send the Basin into Saudi mode... I feel it is bigger than Paradise Deeps which Strachan puts 20,000 Bcf on + liquids of 100's mmblle.

* Yulleroo 2 & 3

[The Big Ease]

you want 400 dollars ELYOB?

[soulman]

Another day, another record high. BRU tracking well today and NSE just starting to catch up. Man, could have accumulate many, many NSE at 64 and 65 this morning just before they start to wake up to BRU's surging share price. Still remember the day NSE release millions of BRU shares at around 70 cents to insto investor. Lucky they still hold many.

[whatsup]

Another day, another record high. BRU tracking well today and NSE just starting to catch up. Man, could have accumulate many, many NSE at 64 and 65 this morning just before they start to wake up to BRU's surging share price. Still remember the day NSE release millions of BRU shares at around 70 cents to insto investor. Lucky they still hold many.

You could possibly buy NSE again this PM at .65 if the slide continues !!

[Rabbi]

Exuberant buying, but whether it's rational or irrational is another question. For a company with a pretty modest production profile, and as yet no 2P reserves, the SP is reflecting potential. I hold but this stellar rise is making me fiddle with my rip cord and look for an exit.:eek2:

[The Big Ease]

wait until the trend is over rabbi.

IMO don't guess. Sacrifice 10% in order to capture an additional 30-50-100%?

[Rabbi]

wait until the trend is over rabbi.

IMO don't guess. Sacrifice 10% in order to capture an additional 30-50-100%?

TBE. It is a well known maxim, that you should never sell in a long term uptrend, unless trading in and out of the retraces. Conversely, conventional wisdom has it that you shouldn't buy into a long term downtrend. BRU has been in an uptrend for so long I can't remember when it started, but as an example, some posters on HC are kicking themselves for selling BRU when it was still under a dollar.

Nothing worse than having to pay more for a stock than you sold it for to get back on the ride again. You would have to be a full time trader, to get in and out of this one successfully, such is the momentum. Most of us either haven't got the time-or the experience with the charting- to get in and out profitably. The only time I tried I got egg on my face, and so I leave that for the experts.

But your point is well taken.

[soulman]

Yeah, let it ride there. I got some BRU yesterday for a little play and sold way too cheap at $3.33. Hence, once a stock bought from a low base like yours Rabbi, should be let to ride all the way to the MAX, you lucky Rabbi.

Probably the only strategy here is to buy more BRU but I don't recommend that at this stage. $3.80 possible tomorrow but so is $3.30.

[ELYOB]

$5 is possible by June 2012

[Rabbi]

$5 is possible by June 2012

$4.00 by Friday.:t_up:

[drillfix]

$4.00 by Friday.:t_up:

Definitely no to that one Rabbi

In fact I should maybe think it may test $2.90

Not saying it will but looking at the 60 min chart on the lower left side of the following chart it may be possible if the daily 13 ema on the right side daily chart fails which shown below:

BRU Intraday > http://www.imageurlhost.com/images/qfdu9thlrmptirrqqhh5_BRUintraday.png



Hope any holders had a stop up there in the mid 3's.

Just a needed breather though as the stocks indicators cycle through, along with serious profit taking IMO.

In the meantime, $3.20 seems to show support on the daily 13 ema also shown.

[Rabbi]

[QUOTE]wait until the trend is over

Maybe over now, maybe not, as there looked like support around $3.20. $4.00 looking less likely but I wouldn't mind if it settled around $1.40 and traded in a narrow band for a while to consolidate.

[The Big Ease]

Still in trend IMO unless it breaks 3.00.

edit: just to elaborate, you'll notice much the same healthy pullback occurred early march. This time, after an even bigger surge up in the SP.
This is all very healthy IMO and it is just getting set for another leg up. If it goes lower than 3.00, then you might reconsider. At the moment, I'd be alert but pretty comfortable with BRU.

Discl: NWE & NSE.....Don't hold BRU.

[Rabbi]

Still in trend IMO unless it breaks 3.00.

edit: just to elaborate, you'll notice much the same healthy pullback occurred early march. This time, after an even bigger surge up in the SP.
This is all very healthy IMO and it is just getting set for another leg up. If it goes lower than 3.00, then you might reconsider. At the moment, I'd be alert but pretty comfortable with BRU.

Discl: NWE & NSE.....Don't hold BRU.

Watching $3.00.

With no news all the excitement is built in.

Another down day and I'm out.....a bird in the hand

...is cash in the hand:cool:

[drillfix]

Anybody still holding this one?

On the chart it seems that eventually that Gap at $2.40 is starting to look like a very real possibility over the next few days/week. (as that is where the 60 day EMA resides)