Friday 6-8-2004: ADI up-x NDI
Monday 6-6-2005: ADI up-x NDI
http://img.villagephotos.com/p/2004-12/905046/AWE.gif
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Friday 6-8-2004: ADI up-x NDI
Monday 6-6-2005: ADI up-x NDI
http://img.villagephotos.com/p/2004-12/905046/AWE.gif
awe-update: stoploss @.928
http://img.villagephotos.com/p/2004-12/905046/awe2.gif
AUSTRALIAN WORLDWIDE EXPLORATION LIMITED
ASX Announcement
September 12, 2005 AWE to acquire 90% of
Indonesian LPG project and undertake a Share Placement Indonesian LPG Extraction Plant
Australian Worldwide Exploration Limited, on behalf of its wholly-owned subsidiary AWE
Singapore Pte Ltd (“AWE”), advises that it has signed a conditional Heads of Agreement (“HOA”) with the owners of PT Ogspiras Basya Pratama (“OBP”) for the acquisition of a 90% interest in OBP. The HOA is subject to completion of final due diligence including regulatory approvals.
Upon completion of the transaction, AWE will acquire a 90% equity interest in OBP by
funding 100% of the remaining capital expenditure on the Kilang LPG Extraction Plant located near Palembang in South Sumatra, onshore Indonesia (“LPG Project”) (see figure 1). The LPG Project is currently under construction. AWE is budgeting A$30 million (up until first production at the end of 2006) to set-up its Indonesian operation and complete the remaining construction activities on the LPG plant.
“Our participation in the Indonesian LPG Project is AWE’s first significant investment
outside our traditional Australian and New Zealand core asset area and comes after
rigorous evaluation of the risks versus reward scenarios. The LPG Project and its potential
for further expansion beyond the initial base case scenario may provide AWE with a fifth
cornerstone asset area” said AWE Managing Director, Mr Bruce Phillips.
“On a conservative view of LPG and liquid prices, AWE will achieve its targeted rate of
return on the initial stage of the LPG Project. Considerable upside can be envisaged on the
basis of sustained higher product prices or through an expansion of the project throughput”,
commented Mr Phillips. By way of background on OBP and the LPG Project: • AWE will acquire a 90% shareholding in OBP by funding 100% of the remaining capital expenditure on the LPG Project, subject to the completion of final due
diligence and regulatory approvals. The remaining 10% equity will be held by an Indonesian partner who has already contributed 10% of the total capex for the LPG Project.
• AWE and its Indonesian partner have also agreed to pursue further mutually
beneficial transactions in Indonesia, subject to AWE’s normal investment criteria.
• OBP has negotiated a 15 year gas purchase agreement with Pertamina, the
Indonesian national oil company, to provide the required raw feed-gas for the LPG
Extraction Plant.
• OBP will retain the rights to all liquids extracted from the plant and has the
necessary rights to sell the liquid products domestically and/or internationally.
• The LPG Project site is adjacent to Pertamina’s major South Sumatran gas pipelines, which currently transmit in excess of 250mmcf of gas per day, and is therefore suitably placed for the receipt of raw feed-gas.
• The LPG Project will be operated by OBP, who in turn has contracted PT WIN (and
Enerflex Systems Ltd, a leading supplier of products and services to the global
energy industry) to build the LPG Plant.
• Based on the contracted input flow rate of 60 million cubic feet of raw feed-gas per
day over the 15 year project life, gross liquid sales form the LPG Extraction Plant
are estimated to be in excess of 1.6 million barrels plus over 500,000 tonnes of
LPG.
• On the assumed product prices, the project will generate gross revenues for AWE
in excess of US$230 million over the life of the project.
Share Placement
AWE will fund the Indonesian project acquisition via a Placement of ordinary shares.
The Placement will also assist in funding other projects and developments for the
Company.
The Placement will raise approximately $120 million and the final pricing of the
placement will be determined via a book-build process to be finalised on 13 September
2005. The placement shares will be issued subject to shareholder approval at the
general meeting of AWE shareholders to be held on or about 19 October 2005.
The Placement is being underwritten by Macq
Would have thought the last sentence would put a lid on the SP for a while ....
I think this might be the third SPP AWE has made over the last 4-5 years, so it has been a steady raiser of cash. Share price has moved from round 80c then to over $2.10 lately, so has been a profitable hold over this time, and for me has grown from a small beginning, after taking up each offer, into a reasonable holding.
I can't recall another example of such a long time - 5 months - between record and offer date.
Any new news?
to many threads - this seems to be the main one
interesting reading the pricesa couple of years ago.
AWE hit a high of $3.78 todays as it marches on towards its broker recomendation of $4.00
Wonder what it will achieve when Tui stats pumping in a week or so?
AWE’s Tui Area Oil Project opened by
New Zealand’s Prime Minister Clark and
sends first oil shipment to refineries
The Tui Area Oil Project was officially opened by New Zealand’s Prime Minister Helen Clark
earlier today at a ceremony in New Plymouth.
The ceremony coincided with AWE Ltd completing the first lifting of crude oil from the
project.
On Thursday August 16, a cargo of approximately 300,000 barrels of high quality Tui crude
was transferred from the Floating Production Storage & Offloading (FPSO) vessel, Umuroa,
to the tanker Akama for shipment to refineries in Sydney and Brisbane operated by Caltex
Australia.
The Akama has been chartered on a long-term basis and is dedicated to the transportation
of Tui crude oil.
AWE Ltd’s Tui Area Oil Project, offshore New Zealand’s Taranaki coast, started production
on July 30, 2007.
Commissioning of the Tui Area production wells and subsea systems has progressed
without incident and three of the four wells are now on line, with a combined estimated
production capacity in excess of 90,000 bopd.
The fourth well is expected to be available when required to maintain maximum production.
A stable crude oil flow rate of up to 42,000 bopd has been achieved through the FPSO. As
expected during project commissioning, production has been slightly constrained by the
FPSO topsides facility, which is designed to handle a maximum 50,000 bopd.
However system uptime is improving quickly as experience in operating the new facility is
gained. Some minor process de-bottlenecking is being implemented which is expected to
allow the full design production rate to be achieved within the next few weeks.
Preliminary testing of samples taken from the production wells suggest the oil properties
and quality are in line with pre-production expectations.
AWE’s Kopuwai-1 drilling update
AWE Ltd (“AWE”) reports that the Kopuwai-1 well is at a depth of 3,876 m. Current
activity is pulling out to change the bit.
Since the last report, the well has been drilled from 2,310 metres to 3,876 metres. Oil
shows were encountered in the Kapuni F Sand over the interval 3,655 to 3,690
metres, but the logs recorded while drilling indicate that the sandstone beds are either
poor quality or finely interbedded over this interval.
Once the well reaches total depth of approximately 4,050 metres, wireline logs will be
run in order to assess the economic significance of the F Sand interval.
Kopuwai-1 is in New Zealand’s western Taranaki basin in PEP 38482, approximately
10 kilometres north of the Tui Area oil project in 125 metres of water.
Any oiler types got any opinion about this announcement? In my opinion this is an important drill for the NZ oil industry: AWE have been giving momentum to Taranaki exploration and if all of their wells came up dry (this being the last in an aggressive series) then companies will be seriously turned off committing to the escalating price of hiring rigs. Perhaps a subeconomic show at Kopuwai will be enough to keep the faith?
Surprised AWE hasn't moved more today considering they just announced 30% increased reserves of the TUI oilfied which they own 42.5% of!
Quote:
ASX AnnouncementNovember 22, 2007Reserves increase by 30% at
AWE’s Tui Area Oil ProjectAWE, as Operator of the Tui Area Oil Project, has undertaken a reserve review which
has resulted in an increased estimate of oil reserves at Tui by 30% to 41.7 million
barrels.
This compares with reserves of 27.9 million barrels on which the Tui Area Oil Project
was originally developed and an interim estimate of 32 million barrels, following the
completion of the development drilling campaign.The increase in proved and probable (2P) reserves is based on interpretation of re-processed
3D seismic, a more detailed assessment of the Kapuni reservoir and the integration of the
production data from the fields since production began on July 30, 2007.
The increased reserves assume production from the existing four wells, plus the completion
of an additional development well in the Tui oil field, Tui-4H. Preliminary planning for the
drilling of this well has begun.Oil Production RatesSince the start of production on July 30, 2007, the Tui Area Oil Project has produced
approximately 4.4 million barrels of oil.Recent production rates of up to 50,000 barrels a day have been achieved, with the current
well capacity still substantially higher than the processing capacity of the FPSOUmuroa.
Water is being produced from the field, but at substantially lower rates than expected from
earlier field simulations.
Based on the current reservoir and facility performance and this upgrade in 2P oil
reserves, AWE has revised the Tui gross oil production target for the year to June
2008 from 10 million barrels to approximately 11 million barrels.
AWE’s managing director Mr Bruce Wood said:“The increase in 2P oil reserves is a great outcome for the Tui Joint venture.
“To have increased the reserves by almost 50 per cent since the start of production is an
outstanding achievement.
“The Tui Area Oil Project will deliver strong returns for AWE shareholders for the long term.”Participants in PMP 38158 are:
AWE * (Operator) 42.5%Mitsui E & P Australia Pty Ltd 35.0%
Stewart Petroleum Company Ltd (“New Zealand Oil & Gas”) 12.5%
WM Petroleum Ltd (“Pan Pacific Petroleum NL”) 10.0%
* New Zealand Overseas Petroleum Pty Ltd (22.5%)
The AGM
From the released material, the AWE guys showed themselves up again by saying nothing, disclosing nothing new, playing the AGM tight to their chests, wasting the opportunity to inform their shareholders of the really good work that is being done, but still asking permission to saunter up to the trough for a top up of share options for management - after buying peace with the surprisingly timely (but early) announcement of the Tui reserve upgrade. What a farce these AGMs are becoming - or have they always been like this? Some put this behaviour down to operator privilege - I put it down to communication failure. How long will it be before the new AWE CEO moves out?
P.S. Did anyone attend the AGM who is prepared to share their thoughts?
Bilo,
I have met a lot of these CEO's
Bruce Phillips took my eye. Raw talent. I mean this guy has taken AWE into new territory. AWE will shortly have so much cash that buybacks will be compulsory. And no one can see it . Same with NZO.
Tony Radford unbelievable Man this guy is cool but market unsaavy,. hence the sentiment
Rick Webber austral pacific. Sorry Rick
Matt Simmonds No one believes him. I do .
I want to go to brisbane next Wednesday just to see Ron Prefontaine's eyes.
I believe his story BOW...man , this could really rock...and good luck to him. Very experienced and has avery good plan....and has learnt from a few mistakes (minor )
Bermuda, Bruce Phillips left on September 1 - talented enough to realise that there are more things in his life than making heaps of money. Bruce Woods has taken over - hence my comment - I thought BWs past experience is closer to dealing in oil companies than understanding geology.
I realise that BP has left.
I met him 2 years ago He had a lot of things to say, some of which cannot be repeated here. I dont know what he is up to now but good luck to him. He brought AWE to where it is today. He was one smart MD for AWE.
AWE is going to have so much cash that buybacks will be out in force.
NZO will be in the same boat but I am picking Radford will want dividends.
.
Markets in turmoil but AWE moving up ...... currently 359, hit 364 earlier on the ASX
BHP also moving up ......
BHP takeover bid on AWE to compliment their GOM oil interests ??
More likely in anticipation of some nice numbers in the upcoming quarterly.
Yes, nice to see Liz
Showing strength whilst everything else is stumbling all over the place ---the only green on my Watchlist today
This year looks like having many stumbles as it works its way through
I dont see it matching 2007 in general
To do well good stockpicking will be vitally essential, but not easy
Off the wire:
Australian Worldwide Exploration Ltd (ASX: AWE.ax) rose 6.9 percent today to A$3.24.
The firm said its key Tui oil project in New Zealand is set to produce its 10 millionth barrel of crude oil this week.
AWE also revised its fiscal 2008 oil production target for Tui to 13 million barrels. It had said on Jan. 31 gross oil production from Tui fields was likely to exceed 12 million barrels.
The encouraging gas shows on the current Lengo-1 drill in Indonesia may have made a contribution to the price today too. :)
Encouraging finish for AWE today.
It it finally going to break through some stiff $3.70 resistance that it has reached 5 times in the past year? If so, watch AWE to rapidly break through $4 and beyond...
SEC
Lengo-1 is taking a very long time for further news.
although watched awe for many years finally bought in april 07 - 2,000 @ $2.78.
looking forward to big news from lengo-1 and of course the quarterly should attract a lot of attention re tui.
M
Apparently $1.58 per ARQ share.
Trading halts in the next quarter of an hour?????
Absolutely Huang, AWE for awesome,
My calculator says AWE are pulling in 2.468 million dollars a day @ US $110 a barrel x 18700 barrels a day x ( 1.20 the NZ dollar )
AUSTRALIAN WORLDWIDE EXPLORATION LIMITEDABN 70 077 897 440Level 9, 60 Miller Street, North Sydney, NSW, 2060, Australia.
PO Box 733, North Sydney, NSW, 2059, Australia
Telephone: + 61 2 9460 0165
ASX AnnouncementMarch 19, 2008Tui set to produce 10 millionth barrelThe 10 millionth barrel of crude oil to be produced from AWE Ltd’s highly
successful Tui oil fields, off the coast of New Zealand, is expected to flow this
week.
The production milestone comes after less than 8 months of oil production from
the field, which first flowed commercial oil on July 30 last year.
Tui, in the Taranaki basin area off the south west coast of NZ’s North Island is
currently the country’s largest oil producer.
Tui is AWE’s flagship operation with gross production in the most recent month of
February averaging 44,000 barrels of oil per day (bopd).
Since the start of production a total of 30 shipments of crude oil have been lifted,
with the 31st lifting scheduled for the today.The strong field performance since the start of production has encouraged
AWE to revise the Tui project’s oil production target for the year to June 30,
2008 to 13 million barrels.
Based on the continued performance of the reservoirs, AWE is initiating a
further reserves review of the fields. This is expected to be completed by
the end of June, 2008.Earlier, AWE had increased the fields proved and probable (2P) reserves originally
estimated at 26.8 million barrels to 41.7 million barrels.
Associated water is being produced from the field, but currently at lower rates than
expected from original field simulation models.Commenting on the milestone, AWE managing director, Bruce Wood, said,“The performance of Tui has been exceptional and has quickly become this company’s
cornerstone asset. We would expect the offshore Taranaki basin area to remain a key area for
AWE into the future.
“There remains strong upside potential in the offshore Taranaki region and AWE is committed
to continuing our exploration in the region.
“But Tui is only one component in AWE’s growth story.
“The company has a number of growth projects in its sights in the Perth, Otway and Bass
basins in Australia and we are constantly assessing potential opportunities to increase
shareholder value.
“We have a very strong balance sheet, very strong cash flow and we remain debt free. This is
an ideal combination in the present market circumstances to allow us to capitalise on any
value creating opportunity we identify.”Participants in PMP 38158 and the Tui Area Oil Project are:
AWE (Operator) 42.5%Mitsui E & P Australia Pty Ltd 35.0%
Stewart Petroleum Company Ltd (“New Zealand Oil & Gas”) 12.5%
WM Petroleum Ltd (“Pan Pacific Petroleum NL”) 10.0%For further information please contact:
Bruce Wood
Managing Director
Australian Worldwide Exploration Limited
Phone: 02 9460 0165
Or For Media Enquiries
Garry Marsden Ian Howarth
Corporate Development Manager Farrington National
Australian Worldwide Exploration Limited Phone: 03 9223 2465
Phone: 02 9460 0165 or 0407 822 319
Oh, forgot to do a 3 monthly fiqure.
Say 2 million a day profit !
And they are about to take out ARQ which is dirt cheap, probably 100% under valued, hmm, food for thought.
But here is the beauty, AWE is owned by fund managers, where is the tiger shark:D
AWE could do worse than have a crack at NZO. They are familiar with the whole operation.
Hmm NZO would be nice, but ARQ is dirt cheap and with the right management their assets will fly. Is NZO dirt cheap ?, I own some, I have an uneducated guess and I would say worth $2.00 +
Very interesting to see who they will knock over, or will they get knocked over by someone like Santos. :rolleyes: ( cost them $5 a share at the least)
last update from lengo-1 was 3 weeks ago - basis no news is good news then can only wait and hope that the news will be very good.
one wonders what awe have been doing with all their tui income - adding value / looking to add value to shareholders one would hope.
not long to the quarterly when some very good numbers will be presented
M
Hit $3.70 today for the 6th time within a year. Not bad to get back to this level given the negativity re ARQ takeover but yet again it retreated once it hit $3.70. Hopefully the quarterly report will give AWE the momentum to move beyond decisively beyond $3.70. Get ready.
SEC
Huge resistance at $3.60-3.70. AWE is definitely on my watch list. Looks cheap on fundamentals, but sp seems to lack constantly behind.
think somebody posted that a lot of institutions are on the share register, so todays drop could be linked to holding cash over the weekend.
the chart shows no significant change in sp volume, however the peak prices are climbing.
At risk of repeating myself, Lengo-1 result and/or the quarterly will push sp higher, whatever comes first.
M
as tui should have produced over 11.75m barrels by cob april 30, then stand by for a production forecast upgrade until june 30 of probably just the extra 1m barrels for now, taking forecast to 14m barrels, although come june 30 the final production may be about 14.5m barrels.
expect the upgrade forecast to be included in the quarterly report as something that has occurred after march 31
for awe that equates to, by the way we expect to produce extra usd$42m in may/june above previous forecast [before tax etc]
hohum,whats usd$42m between friends?
mr market may think otherwise and slap an extra 20c onto the sp
M
AWE and ARQ both in a trading halt. Probably to confirm they are tying the knot.
off the wire:
AWE to buy Arc Energy for $508m
Oil and gas producer Australian Worldwide Exploration is proposing to buy oil firm Arc Energy for $508 million in a cash and share deal, a source familiar with negotiations said.
``Its a cash and share deal which will value Arc at about $1.58 a share,'' said the source who declined to be identified because he was not authorised to speak on the matter.
Zac,
ARQ last traded at $1.54 before trading halt...
Thats virtually no premium at all to last trades...
...
B,
tell AWE to keep printing money...
its not enough...
:cool:
.^sc
I am kicking myself not having any AWE in the portfolio. Its been on my watchlist for sometime, but just havnt got around to buying some. :confused:
I am disappointed myself at the lack of premium. ARQ is accepting less for shares than I paid for them. Hopefully ARQ shareholders will get AWE shares in lieu of cash at a discount to todays price. I have been a long term shareholder of AWE (up 89% on cost) and would be very happy to add to my holding.
30% sounds pretty fair to me. It's AWE that's getting all the cash from 42.5% of Tui!
Besides, I hold more AWE than I hold of ARQ!
;)
peterb,
I could have worded that abit better...
yes, it is at a premium to its recent SP..
it is not at a premium to its real valuation and worth IMO...
I saw a research valuation report a few years back, by Carmichael... this report valued ARQ at $1.53 when oil was $40...
sure the report is a few years outdated now.... Oil is three times higher
A whole new beast is upon us, AWE have attacked in the right market
for a cheaper price...
AWE will likely steal this company at a discount but a premium if you know what I mean...
ARQ has great Strategic assets in Perth and Canning basin with drilling rig fulltime between the two....
Oil and Gas prices have outweighed ARQ's falling oil and gas reserves...
factor in future prices above what they are now...
I could be wrong, I think ARQ is worth more...
any views?
:cool:
.^sc
I see ARQ as being undervalued by the market, whereas AWE is simply trading at fair value.
I though fair value for ARQ was closer to $2
I hold ARQ as I saw its shares as being cheap, would I want to swap my shares in an undervalued Co for a fully valued company ? No thanks, I'd prefer cash !
As far as I can tell, it's only an assumption that this will be a share deal.
It could be that the AWE offer will be, at least partly, for cash.
;)
AWE aren't going to hang around if ARQ shareholders play hard to get. If AWE backs out then the shares could easily fall back to where they were a few weeks ago. Its very hard to value companies like ARQ, because theres so much potential but not much substantial. In the market jitters we've been having, its the sort of projects that AWE are involved with that give investor confidence: the sort of things people valued ARQ for 12 months ago are a bit more nervously regarded by the market now. My disclosure- indirectly hold AWE, not keen on them buying some overpriced speccy - the price they've offered seems fair, and gives a good risk/reward balance. Unfortunately ARQ have been a bit more talk than results and they need some good management from something like AWE to realise potential.
Nor mine. I bought them at 178 a couple of years ago and, although purchase price is irrelevant when considering current value, we only need to look at the vastly increased world oil prices now to realise that the company would be a steal at 158 - even allowing for ARC's need to augment their supply prospects.
the deal is on the asx and looks pretty good for arq.
just hope awe are not paying to muchof a premium though
M
off the wire:
AWE buys Arc Energy
Oil and gas producer Australian Worldwide Exploration Ltd says it will buy oil firm Arc Energy Ltd , in a cash and share deal worth around $510 million.
In a separate statement, ARC Managing Director Eric Streitberg said a merger would "create a clear leader in the Australian mid-tier oil and gas sector", with a market capitalisation of more than $2 billion.
The deal is expected to lead to a new Australia-listed exploration vehicle, Buru Energy Ltd, that will hold ARC's Canning Basin assets in northwest Australia.
ARC shareholders will receive a combination of cash, AWE shares and Buru shares with an implied value of $1.59 per ARC share, at around 27 per cent premium to ARC shares on April 11 when the media reports surfaced on a possible deal.
Oil minnow Arc Energy said on April 14 it was in talks with AWE about a possible takeover. Shares in Arc had surged 45 per cent since then to close at $1.54 on Wednesday, before being put on a trading halt. AWE shares had closed up 3.3 per cent at $3.78.
The deal comes on the heels of a flurry of corporate activity in recent months, with junior oil and gas firms seeking mergers to boost production profiles amid rocketing oil prices, which struck an all-time high of $119.90 on Tuesday.
A merger between the two companies would give AWE more exposure to two projects in western and southern Australia in which both companies have stakes.
AWE, which has a market value of about $1.6 billion, has production assets in Australia, New Zealand and Argentina. It produced 4 million barrels of oil equivalent in 2007.
In February, AWE said a strong increase in revenue and cashflow on the back of robust production rates had left the company with a strong balance sheet and zero debt. It had cash reserves of $97.5 million as of end-2007.
Arc Energy has production assets in the Perth Basin off Western Australia and in the Bass Basin off Victoria. It also holds exploration licences on the onshore Canning Basin.
Arc Energy lost out in an attempt to mid-sized producer Nexus Energy Ltd buy oil producer Anzon Australia Ltd earlier this year.
Hold onto your seat guys. It seems like there will be much more M&A in this sector and it is very exciting times indeed.
Note that by taking out ARQ, AWE has aquired territory it is familiar with. NZO next?
I just had a look at the broker reports on the ARQ website, the latest one (April) was from Hartleys, their valuation was $1.70 based on "core" assets of $1.25
Sure other brokers valuations are expected to be different, I admit to just looking at the latest brokers report (pre takeover announcement) for an indication of value. (My own thinking was $2 )
I just can't understand how ARQ directors could recommend this deal @ $1.50 odd !!!!
I will be interested to see how ARQ share price reacts on Monday, as my initial inclination is to to quit my ARQ shares in disgust.
Though could be tempted to put a few speculative dollars in Buru, assuming takeover goes ahead.
PS: AWE is still a great company, don't get me wrong on that front, all I will say about AWE, is that it don't fit into my personal investment strategy of focusing on undervalued companies.
How do you come to that conclusion?
AWE trades at a lower PE than ARQ, has a similar reserve life to ARQ, and in recent times is more likely to meet/exceed production targets than ARQ.
With this being a friendly takeover those waiting for ARQ to reach $2 before selling will most likely be disappointed.
SEC
ARQ at 1.42 down 7.5% on a day that it theorectically good for oil.
Looks to me like neither parties shareholders likes it! Could be hard to get it up!
Yes, considering the production from Tui and the Tapis price this last quarter, it should be a beauty!
I still think the market doesn't give AWE enough credit for its 42.5% of Tui.
;)
Hi MacDuffy,
The NZOG bar charts in NZOG website set out clearly how Tui actual production has exceeded estimates over the past few months.
If its good for NZOG then it is 4.25 times better for AWE.
PS: I did a ROAR analysis on the SAP 200 to identify portfolio changes.
AWE was #12 stock with 28%.
Energy stocks were 4, 5, 9, 10, and 12.
Excludes BHP - materials.
AWE may miss out if investors limit exposure to 3 or 4 SAP 200 Energy stocks.
Thanks Viking and Bermuda
... the great thing is when you get a 52 week high everyone in the stock is a winner...
This is one stock I have on my watch list I missed out on. Been buying so many aussie oilers and miners I forgot about AWE. Simply just missed out. Hitting myself on this one. Oh well, you cant win them all.
Good trading AWE holders :)
And it was down to $3.00 as recently as March.
$4+ is where the sp belongs.
Happy to be holding from 75c.
AWE hit $4 today~ let's hope it will stay above $4 from now~
hopefully the chartist will find a support line some times later in this level~
U heard it here 1st.
They have announced their intentions and ARQ is the 1st.
Who will be number 2 ?, NXS threw in the towel with ANZON, but NXS has its own field to develope, will need all the cash it can get, AWE is cashed up, raking in the coin and is now much better postioned to take advantage of a cheap swoop on ANZON, now the price has plummeted.
The news out today is very good for ANZON :p
Also can can sneak in from the back door and pick up 66 million cheap NXS shares.
Anzon Australia LimitedABN: 46 107 406 771 Level 13, 90 Arthur Street, North Sydney, NSW 2060, Australia T: + 61 2 9024 3555 F: +61 2 9024 3535 E: aza@anzon.com.au Web: www.anzon.com.au 6 May 2008
The Manager, Companies
Australian Stock Exchange Ltd
Electronic Announcement System
Dear Sir,
ANZON AUSTRALIA LIMITED (ASX CODE: AZA)Please refer attached ASX Release.
ANNOUNCEMENT TO THE ASX
BASKER 6 ST1 OUTSTANDING PRODUCTION TEST
Yours sincerely,
Tony J Strasser
Company SecretaryAnzon Australia LimitedABN: 46 107 406 771 Level 13, 90 Arthur Street, North Sydney, NSW 2060, Australia T: + 61 2 9024 3555 F: +61 2 9024 3535 E: aza@anzon.com.au Web: www.anzon.com.auASX RELEASE
6 May 2008ANZON AUSTRALIA LIMITED (ASX CODE: AZA)The Basker 6 ST1 well, last night conducted its third and final production test over zone 2 and 7 with outstanding results. The well flowed at a stable rate of 4800 bpd at a gas-oil ratio (GOR) of 1060 scf/bbl, and zero water.
BASKER 6 ST1 WELL – OUTSTANDING PRODUCTION TEST
This concludes testing over three zones at an aggregate oil rate of in excess of nearly 13,000 bpd and average gas rates far more favorable than expected. The well’s production rates are far higher than the Joint Venture expected and have supported the existence of the significant south eastern extension to the Basker field with field-wide reservoir sands Moreover the lower GOR’s will enable the total oil rate to be substantially higher from the gas-constrained ‘Crystal Ocean ‘ FPSO facility, once the well is connected via its 5500m flow-line in July 2008.
The Ocean Patriot drilling rig is now conducting well suspension activities.
The participants in the Basker-Manta Joint Venture are:
Anzon Australia Limited 40% (Operator)
Beach Petroleum Limited 30%
CIECO Exploration and Production (Australia) Pty Ltd 20%
Sojitz Energy Australia Pty Ltd 10%
Andrew A. Young
Managing Director
Sydney, Australia
Looks like the quarterly report did indeed give the impetus for AWE to finally definitively crack the $3.70 mark. Next resistance point approx $4.10 but given AWE's fundamentals and trading at a significant discount to its peers (trading at forward PE 10 or less over the next three years based on oil prices well below current prices) there is plenty of upside beyond $4.10.
SEC
see awe have updated their website
M
Hi
Did anyone spot the 2.00PM spike today in AWE - to A$4.71.
Earlier in the day AWE was A$4.35 after the news of the Tui JV extension of the FPSO Charter.
It seems the FPSO news had a bigger effect for AWE in OZ (the spike) than on NZO on NZX or was it something else ...
I see AWE was up 10 cents at $4.32 at the close today compared with up 2 cents in NZ for NZO.
AWE.ASX and NZO.NZX are relative I guess as AWE has 42% of Tui and NZO 10% (ish).
But note that NZO on the ASX was only up today A$0.05. (???)
One thing the experts can comment on - I had some spare cash in $A and NZ$ and topped up NZO on ASX and the NZ on the same day 2 May 08.
I see that NZO.NZX is up 9 cents since and NZO.ASX is down 2 cents.
I did not expect that.
Comments anyone?
exchange rate is in play for one thing.
nz$ is unlikely to fall further against the aud$
nzo is big in nz - the second largest appreciation in value on nzx this year
plenty of press lately
in australia most would not have heard of nzo -who own 12.5% of tui
we did sell out of awe 2 weeks ago - pity
the choice was to sell awe or some nzo or some ppp [ppp have 10% of tui]
as for the spike, guess someone wanted in to complete a purchase, hence the short lived spike
maybe we should put 50,000 ppp up for 50c and see if that spikes once the tui reserves come in
am expecting the tui reserves upgrade to now add another 5+million barrels to beover 52 million.
after that then its only annual updates by mid june each year, intime for the annual reports
M
What puzzles me is that~ the announcement to day should have been a good one for AWE~
but the SP is down 10c the moment~
Guess the market has expected this increase to be much higher then~
or was it something else ~
A pleasant surprise to receive the 10cps special div, complete with NZ Imputation Credit of around 20%!
:)
Your bargain buy for only $2.35 a share.
This is a Warren Buffet type of bargain, value investing.
P2 reserves 69,000,000 Barrel $ Oil $40 = Value $2,760,000,000 Shares on issue 520,000,000 Oil Value per share $ 5.30 Cash $ 0.73.6 VALUE Price $6.03
AWE is an undervalued company, which is an easy 1 bagger
1 -Secured with buckets of cash, 383 million in the bank.
2 - income for many years to come with their P2 reserves, around 69 million barrels.
3 - No debt.
4 - Huge exploration upside, which is not even factored into the price of $6 value.
And heres a bonus, its a prime takeover contender. Someone is out there selling us cheap shares with very little risk ;)
http://www.stocknessmonster.com/news...E=ASX&N=541003
I pretty much agree, tricha, but it looks like the market is taking notice of the forecast production out to 2013 which shows a steady decline from about 10m boe pa to around 6m boe at that time.
And after all, it's an oil and gas explorer/producer with all the risk that that entails.
Disc; I hold.
:cool:
ummm...tricha?
what about..
-taxes
-royalties
-production costs
-admin costs
-exploration costs
-time value of money (ie these barrels of oil are not going to be extracted all at once...you have to discount future barrels by a discount rate).
The calculation was a little too simplistic imo.
KIS.
Oil is $75 a barrel OZ, at todays price, I've allowed $40 for profit, $35 for costs.
Take time to read the link. They kept it KIS Upside_Umop http://www.stocknessmonster.com/news...E=ASX&N=541003
Yes WELL I am in to Macduffy, bought 10K shares to start the ball rolling last Thursday. These guys are now on top of my short list. They have exceptional exploration upside due to their quality acreage.
The takeover of ARQ will start coming through in their numbers.
They have no major shareholder and I expect they will be on someones list;)
Tricha
Didn't NZO recently state with oil around $NZ80/bbl, profit was ~$18/bbl
$A40/bbl profit seems a bit steep, bloody good if its right though!
However its the same kind of rough valuation the PPP fans use, so im confused as to why they would query yours!
I'd imagine STO would like AWE among others
KIS = Keep it simple?
The link didn't work.
Thats very well (keep it simple) if the calculations were accurate and quoting Shasta 'profit per barrel for NZO at $80 was around $18' sounds a lot more accurate. Then discount any barrels in the future and you'll soon see the valuation will drop markedly. Ie, $18 profit per barrel in 10 years discounted back today at 10% only has a value of ~$7 which can attributable to valuation today. I know, I know...oil prices may rise, and they may fall...but this is just used as example.
You also have to remember, that their gas is not fetching the same price as oil in BOE.
I'm not saying AWE is not undervalued/overvalued/bargain etc...just that those figures are not the most representative.
Yes, they are cashed up..and with declining production curve they will need to acquire to keep production steady. It must be hard replacing Tui though, because it has been such an outstanding success. NZO would offer an addition to their production profile...so would PPP - we'll just have to wait and see.
http://www.awexp.com.au
WELL, looks like u will have to go to their website and do your own homework.
They r on my list and if they do not make it, no one will. Not in this market.
If u find a better investment, please let me know ;)
It's on the list :)
Australian Aspect Huntley RecommendationValuation Price: $3.35 https://ost.asbbank.co.nz/images/Aspect_Buy.jpgWorldwide Exploration Limited (AWE) is an Australian based oil and gas explhttp://www.awexp.com.auoration Australian Worldwide Exploration Limited (AWE) is an Australian based oil and gas exploration and production Valuation Price: $3.35 https://ost.asbbank.co.nz/images/Aspect_Buy.jpg Valuation Date: 26/02/2009 company. AWE was recently admitted to the prestigious ASX 100 Index.and production
AWE joined the ranks of serious oil and gas
AWE joined the ranks of serious oil and gas companies in 2006 with production at Casino, Cliff Head and BassGas. Production from Tui in NZ began in July 2007. A key strategy is to develop discoveries near installed infrastructure – like Henry and Trefoil near Casino and BassGas. Expect production to decline from heady 9.9mmboe FY08 levels as Tui's prolific oil flows fade. Stil,l reserve life based on forecast production is favourable compared to ASX listed peers. A suitable energy exposure for investors comfortable with medium risk. Strong management, low sovereign risk, a healthy balance sheet and exploration upside appeal. AWE successfully bid for ARC Energy in 2008.
companies in 2006 with production at Casino, Cliff Head and BassGas. Production from Tui in NZ began in July 2007. A key strategy is to develop discoveries near installed infrastructure – like Henry and Trefoil near Casino and BassGas. Expect production to decline from heady 9.9mmboe FY08 levels as Tui's
AWE joined the ranks of serious oil and gas companies in 2006 with production at Casino, Cliff Head and BassGas. Production from Tui in NZ began in July 2007. A key strategy is to develop discoveries near installed infrastructure – like Henry and Trefoil near Casino and BassGas. Expect production to decline from heady 9.9mmboe FY08 levels as Tui's prolific oil flows fade. Stil,l reserve life based on forecast production is favourable compared to ASX listed peers. A suitable energy exposure for investors comfortable with medium risk. Strong management, low sovereign risk, a healthy balance sheet and exploration upside appeal. AWE successfully bid for ARC Energy in 2008.
prolific oil flows fade. Stil,l reserve life based on forecast production is favourable compared to ASX listed peers. A suitable energy exposure for investors comfortable with medium risk. Strong management, low sovereign risk, a healthy balance sheet and exploration upside appeal. AWE successfully bid for ARC Energy in 2008.
company. AWE was recently admitted to the prestigious ASX 100 Index
EUROZ SECURITIES 28.2.2009 = Comments Price Target: $2.64/sh
AWE recorded a Dec H profit of A$96m net of A$37.4m of exceptional items predominately associated with the ARC merger.
Underlying revenues of A$392.1m were in-line with our A$393m forecast.
We expect revenues to halve, resulting in a NPAT of circa A$20m for the Jun H.
Total Tui production remains on track to achieve our forecast production of 9.2mmbbls for FY’09.
CY’09 will see AWE drill 15 wells commencing with a 4+ well gas exploration (Latent-1 plus one other) and oil development (Hovea x2)
programme in the onshore Perth Basin in the Mar Q.
A major catalyst will be the 6+ well NZ offshore exploration/appraisal program expected to commence in the Sep Q, comprising near
(Tui) fi eld appraisal (42.5%) and high impact oil exploration drilling, including the 100mmbbl+ Hoki prospect.
We expect that the Taranaki Basin will be a major focus of AWE’s G&G activities in 1H’09, with further acreage acquisitions and/or additional
drilling as a result, later in the year.
The June Q will also see AWE test the Rockhopper feature (tagged by Aroo-1 in 1974) as well as appraise the liquids rich, high quality
Trefoil gas accumulation in the Bass Basin (42.5%). AWE estimates net reserves of up 40mmboe may be delivered from the drilling results;
this compares favourably to AWE’s existing 69mmboe of reserves.
The two well commitment on Block 7 in the onshore Yemen (AWE 21% + ADI 8.5%) may commence as early as Q3, whilst further drilling
and acreage acquisition is expected for Indonesia following AWE’s Lengo-1 discovery in 2008.
As at Dec 31, AWE’s cash balance stood at A$383m, though we expect this to fall to around A$300m in light of the weaker oil price and
forecast exploration spend of circa A$60m this H.
AWE’s balance sheet remains strong with no debt and access to a finance facility of A$135m to assist with future acquisitions and/or
development capex.
Investment Case = $2.64
Australian Worldwide Exploration Ltd (AWE)
Last Updated: 30 March, 2009https://ost.asbbank.co.nz/images/printfriendly_icon.gif
My buy of the year AWE.
Valuation
Aspect Huntley
Valuation Price: $3.35 https://ost.asbbank.co.nz/images/Aspect_Buy.jpg Valuation Date: 26/02/2009
.................................................. .................................................. ..
$5.00 is an easy target for this one.
Remember they swallowed up ARQ Energy recently and that was a great deal, ( although it added 37.4 million in costs in the last half year. )
They still turned a great profit and with oil creeping up ........., interesting second half.
Cash, no debt and plenty of oil and gas and plenty of exploration upside.
It does not get much better.
Off the Daily Reckoning.
ARE THEY CRAZY?"
Australian Oil Explorer
Spends Up Large While Competitors Hibernate
If you're sold on oil prices going up long-term, here's another URGENT discount buy to add to your portfolio today.
In fact it's probably one of the most promising oil plays in the world right now... and it trades right here on the ASX. Let me show you why I'm recommending this stock to friends and family as well as my readers...
First and foremost, this company is a "mega cash box". While many oil outfits have squandered their revenue from triple-digit oil prices, these guys have been prudent. They've got $383 million in net cash reserves in the bank.
As I've said, that's your lifeline during a credit crisis. It means you don't have to go cap in hand to banks - most of which are refusing to lend anyway - in order to keep your business going.
That's the first reason you should own this stock.
Second: These guys are not only maintaining current exploration plans... they're EXPANDING. They've got the big picture in mind. BP boss Tony Hayward said recently: "When the economy picks up, demand will pick up very fast and we will quickly run into supply problems."
This Australian explorer knows this. So it's doing its damndest to make sure it's first in line to fill the supply gap when it arises.
Just last month the company announced plans to EXPAND their drilling operations in New Zealand from 120,000 bpd to 180,000bpd.
The Oil and Gas Journal reported on January 30th:
"The upgrade will enable more oil to be recovered at a faster rate from the currently producing reservoirs and also provide the flexibility to tie-in any future nearby discoveries."
It goes on to say the explorer:
"...is now confident it can extract the remaining reserves without the extra development well. There are five attractive prospects near the three producing reservoirs which in total could contain another 50 million bbl of oil."
Look, I've done my homework on this. And you're just not seeing announcements like these from oil companies these days.
What's more, despite the global downturn, this company is making enough revenue to fund development without digging into its savings. It made $140 million in the final quarter of 2008, despite the sinking oil price.
And there's one more great reason to own this company now...
On January 30 It Handed
Investors $52 Million
Income from your investments is crucial during recession.
Investment legend and author of Stocks for the Long Run, Professor Jeremy Siegel, calls dividend-paying stocks "bear market protectors."
On January 30, for the first time ever, this company became a dividend payer - announcing a 10 cent per share special dividend amounting to a massive $52 million.
That takes some chutzpah at a time when revenues are down, oil prices are low and cash is scare.
To me it shows two things: 1) this is a company that respects its shareholders and 2) it's confident they can ride out the storm and start making a killing at the end of it.
With a healthy bank balance, there's every chance they might issue another dividend at the end of the year. Especially if the stock price itself stays depressed.
But you know what? I don't think it will.
The stock now sits around $2.51. That's about $2 less than it was six months ago. But it's recovered from its low of $1.75.
I believe it's a matter of weeks, maybe DAYS before investors who sold out realise their folly and buy back in... and other bargain hunters start buying as well.
$2.51 is a flat-out bargain. I believe you'll see the share price at $5 or more by the end of the year - even if the oil price hasn't recovered. After oil prices recover - and they MUST - you could see this company trading at $8 to $12 in as little as 12 months.
Tricha
You seem awfully convinced, but predicting a multi-bagger in this market takes alot of confidence.
What SP did AWE achieve when oil was ~ $US147/bbl?
I'm conservatively picking a one bagger Skol. NZO will do u WELL as well.
Just like NZO expect a takeover, they are ripe with so much cash and no major player except fund managers.
The date on this register is December 22, 2008.
RankNameShares1.JP MORGAN NOMINEES AUSTRALIA LIMITED82,923,65415.92%2.NATIONAL NOMINEES LIMITED81,793,56515.70%3.HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 56,588,28310.86% 4.ANZ NOMINEES LIMITED 25,028,2674.81%5.UBS NOMINEES PTY LTD14,462,274 2.78%6.FORBAR CUSTODIANS LIMITED 13,651,1232.62%7.CITICORP NOMINEES PTY LIMITED13,494,8232.59%8.AMP LIFE LIMITED 11,947,0872.29%9.COGENT NOMINEES PTY LIMITED 9,018,0641.73%10.COGENT NOMINEES PTY LIMITED7,234,9261.39% 11.BURNAL PTY LTD6,128,3801.18% 12.QUEENSLAND INVESTMENT CORPORATION4,495,0740.86%13.AUSTRALIAN REWARD INVESTMENT ALLIANCE (C/O JP MORGAN)3,541,1460.68% 14.MR EDWARD SMITH & MRS JEAN SMITH (ES & J FAMILY FUND)3,307,5470.64%15.HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2 3,277,5670.63%16.CITICORP NOMINEES PTY LIMITED 3,097,4870.59%17.KEY RESOURCE ANALYSTS LTD2,812,0420.54%18.RBC DEXIA INVESTOR SERVICES AUSTRALIA NOMINEES PTY LIMITED2,613,0420.50% 19.CITICORP NOMINEES PTY LIMITED 2,106,1010.40%20.RBC DEXIA INVESTOR SERVICES AUSTRALIA NOMINEES PTY LIMITED1,891,4160.36% TOTAL:349,411,86867.07%
%
Just having a look at AWE, on the ASB Sec site...;)
They are forecasting lower EPS for FY10 @ 21c on a forward P/E of 11.5
Seems a little pricey even though they have a $3.35 valuation on AWE.
NZO are forecast to have EPS in FY10 of 16.9c, on a forward P/E of 8.0, who have a $NZ1.65 valuation on them.
The market has largely priced in FY09 figures already, with the variable being the POO & $US FX rate.
Hence my preference to NZO over AWE.
The tui field is in natural decline, although plenty of oil to go & to be extracted profitably, thats not the value i see in NZO, the market already knows about Tui & its surrounding prospects...
NZO has been hampered to some extent by PRC, having to raise more capital, i see this as a short term event, & PRC will be re-rated when the cash starts rolling in...
I see this as an opportune time to buy back into NZO, whilst...
1. PRC capital raising is depressing the SP, maybe some overhang?
2. Oil is below $US50/bbl
3. Kupe project not quite up & running yet
4. NZO's next move (if any) on PPP, seems to have stalled.
5. NZO still has the cash pile
I totally agree with you re AWE, any new commercial finds will set it alight!
[quote=shasta;249619]The tui field is in natural decline, although plenty of oil to go & to be extracted profitably, thats not the value i see in NZO, the market already knows about Tui & its surrounding prospects...
NZO has been hampered to some extent by PRC, having to raise more capital, i see this as a short term event, & PRC will be re-rated when the cash starts rolling in...
I see this as an opportune time to buy back into NZO, whilst...
1. PRC capital raising is depressing the SP, maybe some overhang?
2. Oil is below $US50/bbl
3. Kupe project not quite up & running yet
4. NZO's next move (if any) on PPP, seems to have stalled.
5. NZO still has the cash pile
I totally agree with you re AWE, any new commercial finds will set it alight![/quote]
hmm, 69 million P2 reserves, it's still a one bagger.
how many P2 does NZO have ???????????????????
[quote=shasta;249954]Hmm, AWE seem to do everything very professionally, take the takeover of ARQ, ARQ had a lot of good things going for it by itself and I had ARQ from time to time.
The takeover will be very rewarding for AWE, as they both shared common ground in WA.
A bit like NZO taking PPP, u take out a whole management structure and nothing changes, as far as production goes. except costs are lower.
So we should be seeing the saving's, appear this quarter in that area.
Most of AWE's drilling this year is fairly low risk, it is in areas they know very WELL and tyebacks to existing infrastructure is fairly easy. I'm picking a 50% strike rate.
So they have a forward projected decline rate on known facts, but I'm betting with new WELLS coming on stream, it will be an incline.
My calculation as a one bagger is conservative, if they have a 50% sucess rate, remember they are not wildcats.
So AWE is a safe bet and while you sit on the sideline Shasta wanting to buy, you might see the ship sail past u while u r waiting at the train station. That is NZO I mean Shasta, yes it is also a great buy, but the sooner they sell that dog of a mine Pike the better. It's like a bottomless pit.;)
So AWE is in the ASX100, maybe the fund managers will chase it hard as WELL, someone wanted some badly at lunch time yesterday. With no major holder except fund managers, how long till someone like Santos strikes :confused:
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