CUE-> Pantheon of small oil stocks

[jdg]

OPEC meeting on sunday. i hope they decide to cut production. if they do, the price of oil should go higher next week. if theu don't it'll have a big fall on monday. CUE can certainly use all the money it can get right now. i said in a post above we needed maari derisked and the spectre of a capital raising removed for the sp to rise significantly. the first of these points is looking good (great, even), but the latter is still a mystery. a couple of tankers of taranaki oil at a good price would certainly help things. have a good weekend, everyone.

-j

[Crypto Crude]

two successfully drilling production wells in roughly 2km of oil bearing sandstone did nothing for the sp...
Maari first production did nothing to the sp...
Upgraded reserves by 22% did nothing to the sp...
10,000 BOPD per well did nothing for the share price....


so what will do something for the share price? ...

well... its safe to say that,

This will at least turn on cashflow positive, and safety of debt...
this is a good few months away... im confident enough that it will turn soon...

The market now requires performance...
real value is required... not forward looking assumptions or hype... at the time of investment Id factored all this in, argghhh.... time delays killed this stock...

market wants that barrel in the hand, and is discounting two barrels in the bush...

This YEAR we have 3 major activities we can bank on that will provide performance, and one other that may or may not add to performance, (Matariki)...
those 3 activities which will add to performance...

Maari
Manaia
Oyong Gas

...
..
.

The Maari Oil Field is described as "full to Spill point"...
ie, the structure has maximum oil volume for the given trap... (anticline trap)...
130 million barrels of oil in place in the moki formation, and current 2P reserves from HZN of 62 Million barrels...

Manaia (exciting appraisal well later this year), is described as under filled...
The reasoning behind this is Manaia is 6-7 km west of the natural oil migration fairway, where oil migrated South from the East Maui Kitchen gazillions of years ago...
nope, not popa cooking in the kitchen... hehehe....
so as the Trap at Manaia was developing many years ago, oil was diverted West filling some of the structure...
This is why Manaia is expected to increase oil reserves only 1 million barrels more to CUE, and 20 million barrels total more for the JV...
This is the most likely outcome in my view, but could be higher volumes when drilled in more optimal location, and flow tested...


Back when Manaia was first discovered (1974 Maui-4 well, drilled by Shell)... An oil discovery was made...was drilled off center, off crest and flowed at 575 BOPD only... KiwiGeo (a poster from another forum) basically said that it was thought at the time that drilling at the edge of the structure was to intersect a fluid contact which could save the need for further appraisal drilling.... ie, getting lucky...
well, this time we are going for the sweet spot to the north...
yeah hargghh...
As said earlier Im confident we can bank on this well...


the Oil migration pathway that I talked about ran straight through the Maari oilfield which trapped oil as it passed... guess what... this migration pathway runs straight through Matariki...
Matariki is very exciting because it has two major targets in the Moki Formation...
upper and lower Moki sandstones...
This is why the Matariki target is roughly twice the size of Maari... Matariki also has similar characteristics to Maari, seismics show similar hydrocarbon charge...
and I believe CUE hold a 20% stake..

This is a much more exciting exploration well than Zeus even though it is targeting roughly half the discovery...
20 million barrels to CUE compared to zeus's 40m barrels (BOE).....
I will come back to Matariki later on...

Most important is focusing on getting Maari up and running, and getting the seal of approval of performance from the market... I think I gave my seal of approval when I invested last year...

looks like only good announcements to come after a rough period of inactivity...

peace...

.^sc

[Corporate]

SC I enjoy your posts....a few questions

Upgraded reserves by 22% did nothing to the sp...

Why did HZN only annouce this....with no emphasis... and CUE still stated 50m barrels

the Oil migration pathway that I talked about ran straight through the Maari oilfield which trapped oil as it passed... guess what... this migration pathway runs straight through Matariki...
Matariki is very exciting because it has two major targets in the Moki Formation...
upper and lower Moki sandstones...
This is why the Matariki target is roughly twice the size of Maari... Matariki also has similar characteristics to Maari, seismics show similar hydrocarbon charge...
and I believe CUE hold a 20% stake..

Are you sure about the 20% share - and is OMV the operator?

Do you have a diagram of where Matariki is situation in comparison to Maari?

Can it be drilled from the Maari WHP?

[croesus]

Good post Shrewd........... have been buying CUE lately......if I quit my some other stocks tomorrow.. will buy more.....3 years.. should be a 10 bagger.
Croesus.

p.s also keen on WID, WEN, HGD, VPEO.....

do your own research ( its more fun)

[Crypto Crude]

corporate-
1)Why did HZN only annouce this....with no emphasis... and CUE still stated 50m barrels?


2)Are you sure about the 20% share - and is OMV the operator?

3)Do you have a diagram of where Matariki is situation in comparison to Maari?

4)Can it be drilled from the Maari WHP?

1)Maybe CUE is wanting to wait until the market would recieve this announcement more favourably ie when full production is up and running...
and perhaps HZN want to announce it early so they can secure more funds for ongoing costs, proceeding with bigger reserves would be advantageous..

perhaps you could ask CUE and tell us what they said?

2) yup 20%...

3)http://www.stocknessmonster.com/news...E=ASX&N=304299

4) No...
The Ensoc 107 drilling rig will have to be moved from the WHP as Matariki is 22km's away...

oh.... goodie,
you can see in the link that I have shown, the oil migration pathway where oil migrated south across the Tasmin Ridge, and Manaia to the west of that....

.^sc

[Crypto Crude]

croesus-Good post Shrewd........... have been buying CUE lately......if I quit my some other stocks tomorrow.. will buy more.....3 years.. should be a 10 bagger.
Croesus.

hey croesus,
quit what?

dont quit your day job....
not yet anyway...

.^sc

[Corporate]

2) yup 20%...

3)http://www.stocknessmonster.com/news...E=ASX&N=304299


.^sc

Thanks SC. Do you know who the other JV partners are (Todd, anyone else?)

[croesus]

Hi Shrewdie.......... not sure where the " my" came from... can't be a freudian slip re my job as I dont have one.... havnt worked for a employer since i was in my early 20s and that was 30 years ago.

Re stocks... hoping to reduce my holding in VPEO today.. and use some of the funds to buy more Cue.
cheers.

Cue at average cost of 13.5c

[jdg]

oil flowing well from maari and oil price at 10 week highs, yet CUE's not moving. i would like to see CUE clarify its financial position. if we're all good, then say so. if we need some short term funds, then do something about it. i believe it is this uncertainty that's holding us back at the moment. we are all aware of the massive revenues coming CUE's way in the future from multiple projects, but in the short term do we have enough cash to pay our way?

-j

[Crypto Crude]

JDG,
CUE's up 20% off its lows...

I worked out that CUE should have around 10million left at the end of the month, based on information for the quarterly ending 31st Dec......

but the 1 million or so I factored in from Maari is an accrued revenue as first oil cargo is contracted for April...

could be touch and go in the next quarter...

Corporate,
for Matariki...
im aware of CUE 20%
HZN 25%...
TODD's 55%...
Didnt read anything about OMV..
id like to see them in on this...

.^sc