Pan Pacific Petroleum Nl (PPP)

[boysy]

any one wanting to take out ppp would have to pay a significant premieum. I would not expect nzo to try and take ppp out now as it would be very difficult getting the shares off the directors hands especially as vietnam looks the real deal. NZO did make a good choice in buying ppp shares as they have pritty much doubled their investment in 6 odd months. Though you have to wonder if nzo would of gone after the vietnam opportunity if it was presented to them. Its worked out well for both companies though success at taranaki or vietnam will clearly effect ppp more proportionatly than nzo. I wonder if in the coming months nzo shareholders will jump on board ppp to get greater leverage of Taranaki exploration campaign. Time will clearly tell

[macduffy]

I wouldn't expect NZO to try to take out PPP at this stage either.

They have a good blocking stake and anyone else interested will have to offer a pretty good price to get them and PPP directors to come to the party.
Meanwhile, they will get their share of whatever PPP can come up with from an exciting next few months.

[Mr Tommy]

Market cap of PPP is currently about $335m NZD
At end of april PPP held cash of $150m AUD equals about $190m NZD
NOG already holds 15% so only needs to get remaining 85% which will cost $285m (at current price), then they get hold of the cash, so the net cost is only about $95m NZD to buy out 100% of PPP.

[macduffy]

But they won't get it at anywhere near current price.

PPP directors hold too many shares to let that happen.



And I've got a few!

[boysy]

any hint of vietnam being commercial and ppp is going much higher. PPP current 2p reserves around 2mmbl . If red emperor is commercial at 80mmbl and ppp get farm in with 15% hey presto ppp reserves increase 600%. This is clearly a simplistic example all it is ment to illustrate is that vietnam could be many times the reserves that PPP has. Even if vietnam is a dud i would still expect a rather hefty premieum to make the directors part with their shares. NZO is now along for the ride but has little or no control over the direction of ppp. Mr Tommy even now i think an offer of above A$0.70 would not clinch the directors shares . Bring on the 3d survey and further drilling success .

[Sharp737]

And lets not forget that the upcoming Tui drilling could potentially eventually double the Tui reserves...

[notie]

oh good god be a bit more realistic. double the reserves? what are you smoking bro?!!?!?

[Nitaa]

oh good god be a bit more realistic. double the reserves? what are you smoking bro?!!?!?

Tui's remaining reserves must be about 26mbo. A review could show some increase so to get another 26 odd mbo with reserve upgrade and further drilling may not be too overly opertmistic.

Its ok Notie, i feel you may have missed the boat on this one. You had a golden opportunity to pick this stock up in the 20's and more than double your money this year. A good hint, when you see directors buy up strong you got to wonder why? Then you see nzo make a play earlier which in hindsight they have got an absolute bargain.

Discl. picked up this stock when options were 4.1c per share.

[Sharp737]

oh good god be a bit more realistic. double the reserves? what are you smoking bro?!!?!?

Hehe That was the pub talk over a year ago now...when there was no public mappping of the immediate prospects adjacent the Tui fields. And then, low and behold after some time...whallah!! Then the prospects suddenly appeared...and if you compare all of them, about the same size as the existing Tui fields. Of course, they still need to be drilled and that will be exciting BUT if they strike oil in them, then substantial increases to the existing Tui reserves will happen.

I'm not saying they are right, but it is interesting speculation!

[boysy]

Premier-led group to study Vietnam oil resource after discovery


A Premier Oil Plc-led group plans to survey an area off southern Vietnam this month and next to assess potential resources, after announcing a discovery in June.


The group, which includes Vietnam American Exploration Co., Pan Pacific Petroleum NL, and a unit of Abu Dhabi-based Mubadala Development Co., plans a three-dimensional survey covering 1,000 square kilometers, Sydney-based Pan Pacific said Wednesday in statement. It called the discovery “very encouraging.”

Testing at two zones in the area known as Block 07/03 produced flows at a combined rate of 3,265 barrels of oil and 8.1 million cubic feet of gas a day, Premier said last month. The prospect targeted by the well, known as Ca Rong Do, may hold 80 million barrels, Pan Pacific said in May.

Vietnam is hoping that exploration in the area, freed for drilling by a 2003 accord with the Indonesian government that delineated sea boundaries, will help reverse declining oil output. Thailand passed Vietnam last year as Southeast Asia’s third-biggest crude oil producer, after Indonesia and Malaysia, according to BP Plc.

Pan Pacific has surged 57 percent this year in Sydney trading. Premier Oil has climbed 34 percent this year in London.

The survey will target the eastern part of Block 07/03 and is aimed at “defining the resource potential of the Ca Rong Do discovery and adjacent structures, and to determine future exploration and appraisal activity,” Pan Pacific said Wednesday. “Evaluation of an appraisal of the Ca Rong Do discovery will follow the results of the three-dimensional seismic survey.”

The initial well has been plugged and abandoned, and a second exploration well is planned for the fourth quarter, Pan Pacific said.