Strange to see SXY dumped.
Is it because this is effectively an admission that it will require much more capital?
I thought it was pretty much self-sustaining already wrt oil generated funds to invest into shale.
Perhaps this AWE merger would have allowed them to really ramp up some acquisitions and Cooper development.
I do think it would have been a good idea.
The market just doesn't seem to rate the Perth Basin's growth potential, so using the cash from AWE's oil revenues to accelerate the Cooper --> +++value.
Sell off a few non-core assets.
Keep the Perth Basin plugging along.
With such close market caps it was always going to be a difficult one to get up.
Especially with the different growth profiles vs oil production.
Still dirt cheap Mac Duffy, good things take time.
Yes, that seems to be AWE management's view, too. The terms of the merger would have handed SXY shareholders an overgenerous share of the merged entity, based as it was on a depressed AWE shareprice and an overbought (?) SXY SP. Perhaps AWE might look at things differently on another basis that left AWE shareholders with rather more than 47%.
Great posts guys.I am not a conspiracy theorist.But do I have a right to be somewhat cynical ...when a company (any company) exudes any sort of positive news like in this instance AWE...is it not the usual pattern for the SP to leap (as it did) then decline (like say AZS).
On reflection Im probably (despite being around a while) a victim/someone stupid enough to believe that insider information does not occur.
ASX Announcement
6 March 2014
Pateke-4H drilling update
AWE Limited (ASX: AWE) reports that as at 06:00 hou
rs (6.00am NZDT) today, the Pateke-4H
development well had been drilled to a total measur
ed depth of 4,110 metres and an inclination of 89
degrees. The primary objective, the Kapuni F sands,
has been penetrated on prognosis by the 12 ¼”
drilling assembly. Oil shows have been observed by
surface monitoring equipment and realtime
petrophysical measurements indicate the likely pres
ence of an oil bearing reservoir.
It is now planned to run and cement 9 5/8 inch casi
ng to a measured depth of 4100 metres, following
which drilling will continue through the reservoir
section to a projected total measured depth of 5,36
1
metres.
The Pateke-4H development well is in PMP 38158 and
AWE is the Operator. Located in the offshore
Taranaki Basin, New Zealand, PMP 38158 contains the
Tui, Amokura and Pateke fields and has been
producing since 2007.
Pateke-4H is targeting a mapped northern extension
of the currently producing Pateke field. The well i
s
being drilled in water depth of approximately 124m
with a planned total measured depth of 5,361m,
including a 1,272m horizontal section. If successfu
l, the well will be completed for subsequent tie-ba
ck to
the Tui FPSO (“Umuroa”) for production in 2015.
Originally Posted by macduffy
And, actually, it is the other way round, now!
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