NZ Oil & Gas (NZO)

[JBmurc]

[QUOTE=fish;976594]

You do not seem to be the best at predictions.
The pv 12 lateral has hit gas which it is now flaring

Would have been a massive concern if it didn't as they just re-drilled the productive P1 Zone ... all deeper zones were water/dusters/too hard to drill etc ... this will mean they will just drain the formation faster aka won't increase Gas resource much if at all .. its positive in increasing Gas-flows ..but negative as they spent many more 10's millions to just in the end do an infill drill to the P1 resource..

'It is planned that drilling will continue laterally into the P1 formation for several hundred
metres to maximise opportunities to intersect natural fractures. The P1 formation is the
currently producing formation at Palm Valley.'

Mahato development is doing the same drilling more and more wells to tap the Oil Discovery draining the pool of oil faster .. all great in the short term ..but big picture not increasing the O&G resource base.. at some point all those Millions in earnings will have to be directed back into ever inflating costs of Exploration to replace present production so not likely dividends share buy backs ..this is why CUE now has 7mill on tick with NZO and NZO had to raise more capital

[fish]

[QUOTE=JBmurc;976600]

Would have been a massive concern if it didn't as they just re-drilled the productive P1 Zone ... all deeper zones were water/dusters/too hard to drill etc ... this will mean they will just drain the formation faster aka won't increase Gas resource much if at all .. its positive in increasing Gas-flows ..but negative as they spent many more 10's millions to just in the end do an infill drill to the P1 resource..

'It is planned that drilling will continue laterally into the P1 formation for several hundred
metres to maximise opportunities to intersect natural fractures. The P1 formation is the
currently producing formation at Palm Valley.'

Mahato development is doing the same drilling more and more wells to tap the Oil Discovery draining the pool of oil faster .. all great in the short term ..but big picture not increasing the O&G resource base.. at some point all those Millions in earnings will have to be directed back into ever inflating costs of Exploration to replace present production so not likely dividends share buy backs ..this is why CUE now has 7mill on tick with NZO and NZO had to raise more capital

It actually means they will increase production,pipe it to Queensland and achieve earnings that will be multiples of last year.
This gas is not contracted and Queensland prices are prices in keeping with European gas prices.
More gas will be extracted from the resource and sold at record prices.
Btw extracting gas is not like draining a pond with one pipe..
It moves through fractures.
This zone is highly fractured .
They are flaring gas.
It is under high pressure and will likely have higher flow rates than previous wells

[JBmurc]

[QUOTE=fish;976657]

It actually means they will increase production,pipe it to Queensland and achieve earnings that will be multiples of last year.
This gas is not contracted and Queensland prices are prices in keeping with European gas prices.
More gas will be extracted from the resource and sold at record prices.
Btw extracting gas is not like draining a pond with one pipe..
It moves through fractures.
This zone is highly fractured .
They are flaring gas.
It is under high pressure and will likely have higher flow rates than previous wells

I didn't say pool on the PV-12 Gas production ... but Mahato "OIL project"!...

.. yes they will have great Gas-flows that will be limited by the pipelines capacity of course but a good shorter term hit

... longer term PV-12 resource will see P1 Gas flows reduce faster as muti wells take more from the structure I'm sure CUE/NZO/CTP would have much rather been taking Gas from deeper new zones adding further to the 2p reserves .. its not unlimited gas in the P1 ....CUE 2p mmboe= 600kbbls

In CUE's case they have spent $3mill on the exploration of PV-12 ... more costs to come for the lateral P1 production etc ...

I think CTP made a very smart move selling down the NT Gas Projects to NZO/CUE ...

And as for record high Gas prices I can promise you there is many ASX O&G companies much closer to the east coast market pipelines in VIC-QLD-NSW with far larger Gas resources that are moving projects forward to fill the Gas demand ..so I wouldn't count on East coast Gas prices to stay at these record high spot prices for many more months

[fish]

[QUOTE=JBmurc;976685]

I didn't say pool on the PV-12 Gas production ... but Mahato "OIL project"!...

.. yes they will have great Gas-flows that will be limited by the pipelines capacity of course but a good shorter term hit

... longer term PV-12 resource will see P1 Gas flows reduce faster as muti wells take more from the structure I'm sure CUE/NZO/CTP would have much rather been taking Gas from deeper new zones adding further to the 2p reserves .. its not unlimited gas in the P1 ....CUE 2p mmboe= 600kbbls

In CUE's case they have spent $3mill on the exploration of PV-12 ... more costs to come for the lateral P1 production etc ...

I think CTP made a very smart move selling down the NT Gas Projects to NZO/CUE ...

And as for record high Gas prices I can promise you there is many ASX O&G companies much closer to the east coast market pipelines in VIC-QLD-NSW with far larger Gas resources that are moving projects forward to fill the Gas demand ..so I wouldn't count on East coast Gas prices to stay at these record high spot prices for many more months

Your views never seem to stand up to scrutiny .
The PV 12 drill has been more difficult than expected but the outcome is looking to be a big success.
No doubt you likely will not believe this .
So I will explain this as told to me by Andrew sometime ago.
The deep target was always more likely than not to be unsuccessful .
The extensive fractures made drilling very slow .
The upside to this was the lateral made more sense to develop.
Gas is trapped in the sandstone .
More fractures means more gas will flow and for a lot longer ..

You must be regretting selling out.
Maybe not but I would-in fact I have been buying as you have been selling !.
Annual report due out in a couple of days-first as a primary Asx listing .
will be interesting to see the market response

[JBmurc]

[QUOTE=fish;976693]

Your views never seem to stand up to scrutiny .
The PV 12 drill has been more difficult than expected but the outcome is looking to be a big success.
No doubt you likely will not believe this .
So I will explain this as told to me by Andrew sometime ago.
The deep target was always more likely than not to be unsuccessful .
The extensive fractures made drilling very slow .
The upside to this was the lateral made more sense to develop.
Gas is trapped in the sandstone .
More fractures means more gas will flow and for a lot longer ..

You must be regretting selling out.
Maybe not but I would-in fact I have been buying as you have been selling !.
Annual report due out in a couple of days-first as a primary Asx listing .
will be interesting to see the market response

Nope not regretting it at all .. I see CUE next to no volumes very little in the BUY cue only 700k to 5c!!! ..

I don't think you understand Gas projects very well yes lateral near surface they have GAS The Palm Valley field started production in 1983 are currently 4 gas production wells in the anticlinal structure which is approximately 29 kilometres long and 14 kilometres wide.

PV-12 yes they planned to run yet another lateral into the P1 that was plan B...but .. P2 - P3 - P4 nothing commercial and deeper not able to drill ..so to make use of the equipment on site they run 5x well a lateral in the P1 yes more GAS flow but same structure ...how can't you understand CUE/NZO/CTP hasn't made a new discovery here ???

[fish]

[QUOTE=JBmurc;976850]

Nope not regretting it at all .. I see CUE next to no volumes very little in the BUY cue only 700k to 5c!!! ..

I don't think you understand Gas projects very well yes lateral near surface they have GAS The Palm Valley field started production in 1983 are currently 4 gas production wells in the anticlinal structure which is approximately 29 kilometres long and 14 kilometres wide.

PV-12 yes they planned to run yet another lateral into the P1 that was plan B...but .. P2 - P3 - P4 nothing commercial and deeper not able to drill ..so to make use of the equipment on site they run 5x well a lateral in the P1 yes more GAS flow but same structure ...how can't you understand CUE/NZO/CTP hasn't made a new discovery here ???

It is not a new discovery but it is likely a big success .
Gas flow is likely to be large and the infrastructure is all in place to ship it at World LPG prices for years to come.
NZO have said they will start paying dividends as soon as cash flows are positive which will be in a few months .
Even if they only pay 10% of cash flow as dividend it will be a large and regular dividend.
I might have to retire from my day job to manage this.

[RTM]

[QUOTE=fish;976898]

It is not a new discovery but it is likely a big success .
Gas flow is likely to be large and the infrastructure is all in place to ship it at World LPG prices for years to come.
NZO have said they will start paying dividends as soon as cash flows are positive which will be in a few months .
Even if they only pay 10% of cash flow as dividend it will be a large and regular dividend.
I might have to retire from my day job to manage this.

I hope you are right…but I am not holding my breath !

[Wiremu]

I don't know about others but I'm learning a lot from the inter-play of Fish and KBmurc.

Good stuff guys.

[fish]

I don't know about others but I'm learning a lot from the inter-play of Fish and KBmurc.

Good stuff guys.

Yes it is good to learn from each other-and I have a lot to learn .
Hoping for lots of good news in the next few days

[RTM]

I don't know about others but I'm learning a lot from the inter-play of Fish and KBmurc.

Good stuff guys.

Nice post, agree.