CUE-> Pantheon of small oil stocks

[jdg]

was anyone at the conference who saw CUE's presentation? i have only read the presentation slides. although not new, the graphs showing oil and gas reserves coming this way from later this year are exciting. at least they are to me. obviously the market wasn't inspired much, unlike the case of some companies that presented. this worries me none, though. CUE’s time will come, and come soon. notwithstanding any start up problems, CUE is assured of a re-rating as these projects progress starting with maari next quarter – the revenue from them dwarfs CUE's modest market cap.

one issue to note is the drop off in oil from 2010 when SE Gobe, Oyong and Maari decline. however, these will be surplanted by gas revenues from Oyong and Wortel that kick in from 2010, the medium term future is very bright indeed.

moreover, given the exploration schedule, more drilling success is highly likely.

also, i note they give cobra a 17% chance of success. god knows how they come up with that figure, but given CUE has 10 percent of the drill, and it could contain 30-40m barrels, it would stunning if it came in – it would be a bigger find (for CUE) than maari. no great shakes if it doesn't (in some ways it's a distraction), but the sp would really move up on a strike there.

exciting times ahead with the different exploration drills, but i’d expect a steady sp increase as production from the various projects draws near and then, one by one, begin.

-j

[ELYOB]

Keep an eye on MEO .....Big action here with CUE in Oct08 just NW of Woodside playground . Its in the lap of the gods. Ask about what Zeus can do for you........

The rest is chicken feed.

[bermuda]

was anyone at the conference who saw CUE's presentation? i have only read the presentation slides. although not new, the graphs showing oil and gas reserves coming this way from later this year are exciting. at least they are to me. obviously the market wasn't inspired much, unlike the case of some companies that presented. this worries me none, though. CUE’s time will come, and come soon. notwithstanding any start up problems, CUE is assured of a re-rating as these projects progress starting with maari next quarter – the revenue from them dwarfs CUE's modest market cap.

one issue to note is the drop off in oil from 2010 when SE Gobe, Oyong and Maari decline. however, these will be surplanted by gas revenues from Oyong and Wortel that kick in from 2010, the medium term future is very bright indeed.

moreover, given the exploration schedule, more drilling success is highly likely.

also, i note they give cobra a 17% chance of success. god knows how they come up with that figure, but given CUE has 10 percent of the drill, and it could contain 30-40m barrels, it would stunning if it came in – it would be a bigger find (for CUE) than maari. no great shakes if it doesn't (in some ways it's a distraction), but the sp would really move up on a strike there.

exciting times ahead with the different exploration drills, but i’d expect a steady sp increase as production from the various projects draws near and then, one by one, begin.

-j

Yes I went along and made some notes

1. They are striving to deliver as per their Corporate Plan
2. Octanex ( a company I rate ) hold 5.79%
3.Todds over 25%
4. Geoff Albers in there too.( Shrewder than Shrewd )
5.Net income set to double but bills to be paid
6.Cobra next 2 weeks...Helicopter country $US50m drill
7.Jeruk disappointing
8.Maari 35000 bbls p day with upside and from Manaia
9.Carnarvon-exciting large gas upside.Bigger than big.

Had a good chat with Bob Coppins CEO. Cue will perform...but I like others with more ( immediate ) leverage

Looks good

[jdg]

thanks again for that, bermuda.

well, we have speculated that CUE's sp may have been driven by speculation surrounding cobra. and, it seems, this was right. is the recent weakness those speculators getting out in case it's a duster? (and the basic law of probability suggest it will be). if that's the case, good on them. they've made a few bucks and it was a good strategy. i'm seeing this through until maari production at the least - probably through to first gas. by that time i am quite certain the sp will be very much higher than it is now regardless of exploration results. CUE has enough proven reserves in the ground to take it a long way up from here. from maari production alone, i see a similar drive to what PPP went through before Tui, but I’m picking CUE’s will be greater (PPP was purely a Tui play, so it has fizzed a little since). also, there is oil above maari (M2A sands) and oil and gas below (mangahewa formation), so a reserve upgrade from that development is most likely with very little extra cost. then we have gas from oyong and then after that wortel. this is another stock i feel very comfortable holding. i see very little downside risk and exciting upside potential.

-j

[jdg]

Cobra:

"Progress for the week was 558 metres. The secondary Hedinia has been penetrated and elevated gas readings have been recorded"

too early to say what this might mean, but certainly it's encouraging.

-j

[jdg]

..in saying that, only 150m to target depth and no oil shows. at least we should know what the story is come monday.

[ELYOB]

They are just above the main interest in the well ...

Making good time in the drilling by the looks .

This area is very prospective and we have a best chance by the limited info of having a result . It looks better than indicated . Results of close near wells bode well here .

[jdg]

from the sydney morning sun herald - with thanks to patpat on another forum

Among brokers, Oil Search is the standout stock with nine buy recommendations, compared with three for Woodside (nine say it's a hold or sell) and seven for Australian Worldwide Exploration.

And that's more because of its huge reserves in Papua New Guinea of gas, an alternative to oil.

Well-regarded middle-sized oil explorers include Roc Oil with seven out of nine brokers covering the stock calling it a buy and the other two a hold; and Beach Petroleum which also has extensive gas interests and has six buys out of six broker recommendations. Although the oil price has become a speculative bubble, the same can't be said for speculative stocks.

The prices of many of the smaller oil explorers have barely budged from a year ago.

Partly because the bigger producers are such a sure thing that there's no need to take extra risk in a volatile sharemarket to start with, analysts tend to give the oil speculators short shrift.

There's also a bit of science and a lot of luck involved.

"You have to look at the fundamentals such as their drilling prospects and the size of their reserves," said Valibhoy.

Still, two stocks that he says pass the test are Cue Energy and New Zealand Oil and Gas which have already started drilling.

[ELYOB]

I think it maybe time we all discussed this stock as it is going to be activated in 4 weeks . I want info on Singapore Petroleum if anyone knows ???????????????????????????????

What effect can we have from the Maari development ?

And Zeus , what part are the gods going to play .... MEO has certainly done its bit . CUE announcement today on Zeus comfirms everything .

One analyst says that 3P reserves are undervalued big time ..... I would like someone to do the number crunch on this oiler please...

[tricha]

I think it maybe time we all discussed this stock as it is going to be activated in 4 weeks . I want info on Singapore Petroleum if anyone knows ???????????????????????????????

What effect can we have from the Maari development ?

And Zeus , what part are the gods going to play .... MEO has certainly done its bit . CUE announcement today on Zeus comfirms everything .

One analyst says that 3P reserves are undervalued big time ..... I would like someone to do the number crunch on this oiler please...

My friend Paul has done a valuation on them and now they are back to 22.5 cents, they are trading at nearly a 100% discount on his numbers.

So yes I added them to my oil stocks, when this claytons bubble unfolds