Bru- Buru Energy Canning Basin Superbasin

[Rabbi]

If you wanted exposure to oil I wouldn't recommend anything because by definition, and in reality,you are held hostage to oil price volatility.

My personal favourite is Senex energy, a pure coal seam gas company with brilliant management who have just signed multi gas sales agreements.

They sold all their Cooper Basin Oil assets to Beach Energy for 80 million to concentrate on the burgeoning gas business.

As there is a shortage of gas on the East Coast of Australia it doesn't look like they have much downside risk, although in saying that, their SP has been underperforming,

so either Senex is cheap on fundamentals, or the market knows something I don't know. In any case DYOR

[Joshuatree]

Thanks Rabbi, I think we may be in for a global energy shortage run.Will try again to add a link later.

[Rabbi]

In today's environment of rising oil prices you could invest in companies such as Woodside, Santos, Origin, Oil Search, even Beach and there is maybe still plenty of upside.
You have to remember that only two months ago this was one of the most beaten down sectors in the market and share prices were languishing.
But who knows what is going to happen in the future, the oil price being contingent on so many other contingencies, foresight is impossible.
My observation, - from investing for over 20 years in this sector- is a buy and hold strategy is not a good strategy.
These days I only hold Beach Buru Senex and Otto. Two ( Beach and Senex) are relatively mature and both pay dividends.
The other two are juniors who seem to gobble up more money than they earn. OEL has had to suspend exploration as it is basically broke,
while Buru is in the middle of an exciting and expensive drilling campaign. Company should have test results on Currajong and Rafael drilling any day now,
that is barring any unforeseen problems like loosing the downhole assembly, drill bit etc. etc.
One lives in hope.

[Rabbi]

https://stocknessmonster.com/announc...asx-6A1055313/

One duster, one result to come. Punters that bought up large on the hype are feeling aggrieved to say the least. Name of the game is not to get too greedy and overplay your hand.

[Joshuatree]

[QUOTE=Rabbi;915027]"In today's environment of rising oil prices you could invest in companies such as Woodside, Santos, Origin, Oil Search, even Beach and there is maybe still plenty of upside."

"These days I only hold Beach Buru Senex and Otto. Two ( Beach and Senex) are relatively mature and both pay dividends."

Good advice. I think this global energy shortage for oil, gas and coal is going to run for quite some time unfort ,imo. Ive invested in Woodside, Horizon and a small leftover holding in NZOG atp..

[Rabbi]

One can't overemphasize how difficult it has been to" crack" the Canning Basin. Buru is now on its 3rd joint venture partner having burnt out both Mitsubishi Corp. and Roc Oil.
They were lucky 12 years ago when they discovered Ungani but the oil flow rates from Ungani production have been abysmal to say the least.

Still looking for the elephant in the room which is going to turn into an an expensive exercise if they can't find it soon.
Its a pity the gas infrastructure isn't there as I feel that's where the potential lies.

[Rabbi]

.... and the denouement is about to unfold. It seems they have a sniff of hydrocarbons in the overlying Anderson formation which may or may not be prophetic

https://hotcopper.com.au/threads/ope...pdate.6370772/

[Rabbi]

Hold your breath...

https://www.businessnews.com.au/arti...-oil-reservoir

[Rabbi]

Canning dolomite reservoir section at Raphael proving a challenge so they gotta be careful. Looks promising so hold your ticket on the important factors ie Gas/ condensate Oil/ wet gas as to what it flows, as there appears to be plenty
of reservoir pressure.

https://stocknessmonster.com/announc...asx-6A1061644/

[Rabbi]

https://stocknessmonster.com/announc...asx-6A1064168/

Looks like a significant wet gas discovery, with low CO2, good ratio of condensate with LPG. Now awaiting flow testing but with well pressure at 6000psi I'm looking forward to the result.