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.
I note an existing holder has bought about 8m shares....its always hard reading these things.
Disc ..now hold 4k ...sold as above
Probably guilty of ramping...
The "existing holder" has an interest in theses shares as investment manager, not beneficial holder. As you note, there is no way of knowing who the beneficial owner/s is/are. There may be one - or many. A good sign, perhaps, in that someone, at least, has seen AWE to be good buying!
UBS rates AWE as Upgrade to Buy from Neutral (1) - AWE has announced up to 1.2tcf of deeper gas potential at Senecio in the Perth Basin. The company will flow test by year-end and appraisal drill early in 2015. The broker has increased its risked valuation for the Perth Basin. This results in a target price increase to $2.05 from $1.95.
Combine this with a 5% fall in the AWE price since its result last month and the broker has upgraded to Buy.
Target price is $2.05 Current Price is $1.91 Difference: $0.14 If AWE meets the UBS target it will return approximately 7% (excluding dividends, fees and charges).
The company's fiscal year ends in June. UBS forecasts a full year FY15 dividend of 0.00 cents and EPS of 9.00 cents .
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 21.22.
Market Sentiment: 0.8
How do these forecasts compare to market consensus projections?
Current consensus EPS estimate is 8.2, implying annual growth of - 31.2%.Current consensus DPS estimate is N/A, implying a prospective dividend yield of N/A.Current consensus price target is $ 2.11, suggesting upside of 10.2%(ex-dividends).Current consensus EPS estimate suggests the PER is 23.2.
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources
Some years back AWE paid a dividend using the opportunity to give NZ shareholders imputation credits built up over the years. Hopefully at somestage as the profits accumulate this may happen again.
We can always hope so, westerly, but it seems that AWE, like most oilies, has its sights set more firmly on exploration and growth than producing income for investors eg expenditure on exploration and development this current year is planned to roughly equate to expected income.
From memory, the special div a few years ago followed the sell down of a major chunk of AWE's interest in a Bass Strait field. We may have to wait for another such asset sale to free up the cash for another payout.
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Originally Posted by troyvdh
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